Asg Solutions Corporation v. United States

CourtUnited States Court of Federal Claims
DecidedMay 6, 2026
Docket24-1966
StatusPublished

This text of Asg Solutions Corporation v. United States (Asg Solutions Corporation v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Asg Solutions Corporation v. United States, (uscfc 2026).

Opinion

In the United States Court of Federal Claims No. 24-1966 Filed: May 6, 2026 FOR PUBLICATION

ASG SOLUTIONS CORPORATION DBA AMERICAN SYSTEMS GROUP,

Plaintiff,

v.

UNITED STATES,

Defendant.

David S. Demian, Finch, Thornton, & Baird LLP, San Diego, CA, for the plaintiff.

Anna B. Eley, Civil Division, U.S. Department of Justice, Washington, DC, for the defendant.

MEMORANDUM OPINION

HERTLING, Judge

The plaintiff, ASG Solutions Corp., dba American Systems Group (“ASG”), was awarded an Indefinite-Delivery/Indefinite-Quantity (“IDIQ”) task order in 2022 by the defendant, acting through the Department of the Navy (“Navy”), to provide engineering and program-management support services to the Naval Facilities Engineering Systems Command Southeast (“NAVFAC SE”) at the Naval Air Station (“NAS”) in Jacksonville, Florida. After six months, the Navy terminated ASG’s task order for default. In 2023, ASG filed certified claims with the contracting officer for wrongful termination for default, breach of contract, and breach of the covenant of good faith and fair dealing.

After the contracting officer rejected its claims, ASG filed a complaint in this court (Case No. 23-1029) under the Contract Disputes Act (“CDA”), 41 U.S.C. § 7101 et seq. ASG challenged the termination for default and alleged that the Navy had breached the contract and the covenant of good faith and fair dealing. On cross-motions for summary judgment, ASG was found to have failed to perform the task order, and the termination for default under FAR 52.249- 8 and 49.402-3(f) was upheld. ASG Sols. Corp. v. United States, 170 Fed. Cl. 485 (2024). ASG appealed the adverse judgment.

On November 27, 2024, while its appeal was pending, ASG filed this complaint, again alleging that NAVFAC SE wrongfully and in bad faith terminated ASG’s task order for default (ECF 1 at ¶ 6.) The complaint largely mirrors the 2023 complaint, but ASG adds an allegation that the contracting officer’s memorandum requesting that the task order be terminated for default is “of suspect fraudulent origin,” due to the memorandum’s failure to comply with the Navy Correspondence Manual. (Id. at ¶ 22.) The complaint alleges that “[i]n light of these policy deviations, there is genuine concerns whether this document, which was first presented on March 7, 2024, on the eve of oral argument [in Case No. 23-1029] on March 12, 2024 was indeed prepared on the date typed on that document, and therefore prior to [the termination for default] on April 4, 2023, as required by law or fraudulently claimed as such when it was not.” (Id. at ¶ 23.)

On December 15, 2025, the Federal Circuit affirmed the summary judgment upholding the termination for default and dismissing the July 2023 complaint. ASG Sols. Corp. v. United States, No. 2024-1755, 2025 WL 3627729 (Fed. Cir. Dec. 15, 2025), reh’g and reh’g en banc denied (Mar. 3, 2026).

The defendant moves to dismiss the November 2024 complaint, arguing that after receiving a final judgment on the merits of its earlier complaint, ASG is precluded from relitigating those issues. The issues presented in this complaint are identical to those litigated in ASG’s first complaint and were necessary to the judgment in the original action. ASG had a full and fair opportunity to litigate the issues in that first action. ASG is therefore barred by issue preclusion from relitigating its claim. The complaint is dismissed under Rule 12(b)(6) of the Rules of the Court of Federal Claims (“RCFC”) for failure to state a claim.

I. FACTUAL AND PROCEDURAL BACKGROUND 1

In 2019, ASG, a provider of professional-support services for federal agencies, along with more than 2,400 other entities, was awarded the Seaport Next Generation Multiple Award, IDIQ Contract, No. N0017819D7175 (“Seaport NxG Contract”). (ECF 1-2 at 12.) Under the Seaport NxG Contract, various Navy components would procure a variety of professional- support services.

On August 25, 2022, ASG submitted a proposal in response to a solicitation for task order No. N6945022F3005 under the Seaport NxG Contract. (Id. at 46.) Under the task order, the contractor would provide technical support services at NAS Jacksonville for NAVFAC SE’s

1 The facts outlined are drawn from the complaint and exhibits in support of the complaint. When reviewing a motion to dismiss, a “court must accept as true all undisputed facts asserted in the plaintiff’s complaint and draw all reasonable inferences in favor of the plaintiff.” Trusted Integration, Inc. v. United States, 659 F.3d 1159, 1163 (Fed. Cir. 2011). A court is not “‘limited to the four corners of the complaint’” in resolving disputed facts and may review evidence outside the pleadings, including “‘matters incorporated by reference or integral to the claim, items subject to judicial notice, [and] matters of public record.’” Dimare Fresh, Inc. v. United States, 808 F.3d 1301, 1306 (Fed. Cir. 2015) (quoting 5B Charles Alan Wright & Arthur S. Miller, Federal Practice and Procedure § 1357 (3d ed. 2004)). Judicial notice is taken of exhibits, briefs, and the transcript of oral argument in the first complaint.

2 Design and Construction Business Line. The task order was to begin in October 2023. (Id. at 19.)

Under the solicitation, offerors were to assemble a “team” to “provide expert advice and assistance services” on various NAVFAC SE-supported projects. (Id. at 47.) With respect to this team, the solicitation noted that:

[a]t the time of initial contract award, the Government anticipates a staff of four (4) Architects, four (4) Mechanical Engineers, four (4) Electrical Engineers, two (2) Civil Engineers, two (2) Structural Engineers, one (1) Fire Protection Engineer, one (1) Cost Engineer, and two (2) Supervisors.

(Id.)

The solicitation identified this “anticipated staff” of 20 professionals as the “base/minimum” level of service required under the task order. (Id.) Other provisions of the solicitation were consistent with these requirements.

As part of its proposal, ASG submitted a proposed 20-member team consisting entirely of senior-level, accredited professionals with advanced degrees. Although the list included the specific qualifications of the individuals, it did not include the name of any of the individuals proposed. ASG accompanied its proposed team with the proposed cost associated with employing each team member. On September 15, 2022, the contracting officer requested that ASG “confirm that [it] underst[ood] the technical experts submitted after award must meet the additional requirements proposed” in ASG’s proposal, and ASG responded simply, “[y]es.”

On September 28, 2022, ASG was awarded the task order. After being awarded the task order, ASG struggled to assemble its team of professionals. On October 3, 2022, the date by which ASG had to submit resumes for its 20 team members, ASG submitted only two resumes. Between October 6, 2022, and November 9, 2022, ASG submitted eight additional resumes. Of the 10 resumes submitted by November 9, 2022, four were rejected by NAVFAC SE because the professionals lacked required licenses or possessed inadequate experience in comparison to the senior-level team members proposed by ASG. Six resumes were accepted, but four of these six professionals declined ASG’s offer, did not report to work, or quickly resigned. As of November 9, 2022, ASG only had two professionals available to work under the task order.

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