Can Softtech, Inc v. United States

CourtUnited States Court of Federal Claims
DecidedOctober 15, 2024
Docket24-1009
StatusPublished

This text of Can Softtech, Inc v. United States (Can Softtech, Inc 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.

Bluebook
Can Softtech, Inc v. United States, (uscfc 2024).

Opinion

IN THE UNITED STATES COURT OF FEDERAL CLAIMS ______________________________________ ) CAN SOFTTECH, INC., ) ) Plaintiff, ) No. 24-1009 ) v. ) Filed: October 1, 2024 ) THE UNITED STATES, ) Re-issued: October 15, 2024 ∗ ) Defendant. ) ______________________________________ )

OPINION AND ORDER

Plaintiff CAN Softtech, Inc. (“CSI”) seeks an order requiring the Government to complete

the Administrative Record with additional evidence CSI believes the Government improperly

withheld. CSI also seeks to compel public disclosure of a key document included in the sealed

Administrative Record. For the reasons that follow, the Court GRANTS IN PART, DEFERS IN

PART, and DENIES IN PART CSI’s Motion to Complete and/or Supplement the Administrative

Record and Motion to Compel Redacted Document (ECF No. 18).

I. BACKGROUND

On January 2, 2024, the General Services Administration (“GSA”) awarded a contract

under Request for Quote No. 47QFLA23Q0116 (the “Solicitation”) to CSI for the provision of

information technology services to the United States Air Force. See Pl.’s Compl. ¶ 3, ECF No. 1.

On July 1, 2024, CSI filed the instant bid protest challenging certain decisions of GSA in relation

to the procurement. See generally id. CSI alleged that: (1) GSA’s decision to take corrective

action in response to a post-award bid protest filed by the incumbent at the Government

∗ The Court issued this opinion under seal on October 1, 2024, and directed the parties to

file any proposed redactions by October 8, 2024. As the parties did not propose any redactions, the Court reissues the opinion publicly in full. Accountability Office (“GAO”) and subsequent decision to cancel the award to CSI and issue a

revised solicitation was arbitrary and capricious, and (2) GSA’s extension of the incumbent

contract on a sole-source basis was improper and unlawful. See id. ¶¶ 1–15. At the initial status

conference held on July 9, 2024, the parties discussed the potential exchange of relevant

procurement documents prior to the Government filing the Administrative Record. In a July 16,

2024, Joint Status Report, the Government explained that it would include in the Administrative

Record a June 25, 2024, memorandum entitled “Determination & Findings Termination for

Convenience and Re-Solicitation” (“D&F Memo”) providing GSA’s explanation for canceling the

original solicitation and award to CSI. Joint Status Report at 1, ECF No. 17. The Government

indicated it would not produce certain other documents related to the contract termination or re-

solicitation because GSA is still finalizing a new solicitation and because such pre-decisional

documents were developed during the deliberative process and are thus privileged. Id. at 1–2.

On August 7, 2024, before the Government filed the Administrative Record, CSI filed a

Motion to Complete and/or Supplement the Administrative Record and a Motion to Compel a

Redacted Document. See Mot. to Complete & Compel, ECF No. 18. The Government filed the

Administrative Record two days later. See Admin. R. (“AR”), ECF No. 19-1. It responded to

CSI’s Motion on August 21. See Resp. to Mot. to Complete & Compel, ECF No. 22. Then, on

August 28, 2024, CSI filed an Amended Complaint, adding an allegation that GSA breached its

implied duty of good faith and fair dealing by offering a pretextual rationale for its decision to

cancel the award and start the procurement from scratch. Pl.’s Am. Compl. ¶¶ 95–97, ECF No.

23. In support of this claim, CSI attached a declaration from its Chief Executive Officer, Swapna

Reddygari, explaining that Ms. Reddygari and CSI learned from Air Force personnel that “GSA

was attempting to persuade the Air Force to terminate CSI’s award, cancel the Solicitation, and

2 issue a new solicitation—all for the purpose of continuing the incumbent’s performance and

avoiding a bid protest.” Id. at 27 (Reddygari Decl. ¶ 8). On the same day, CSI filed its Reply in

Support of its Motion to Complete. See ECF No. 24. Because the Government had no opportunity

to respond to CSI’s new allegations and the newly attached declaration, the Court stayed the merits

briefing schedule and ordered the Government to file a sur-reply. Order at 2, ECF No. 26. The

Government filed a Sur-Reply on September 6. See ECF No. 28. The Court held oral argument

on the motion on September 16, 2024.

CSI seeks three types of documents to complete the record: (1) “[i]nternal correspondence,

including emails and memoranda, that reflect GSA’s contemporaneous decision-making in

announcing corrective action in response to [the incumbent contractor’s administrative] protest;”

(2) “[i]nternal correspondence, including emails and memoranda, that reflect GSA’s

contemporaneous decision-making leading to its decision to terminate CSI’s Contract and to

produce the D&F Memo;” and (3) “[d]ocuments reflecting proposed revisions of the Solicitation

and/or GSA’s effort to effect the changes suggested in the D&F Memo.” ECF No. 18 at 5–6. CSI

indicates that it is reserving the right to supplement the record with a deposition of GSA’s

contracting officer. See id. at 7. The Government argues that CSI merely speculates that the

Administrative Record is incomplete and that CSI fails to provide any evidence suggesting any

documents were improperly omitted. ECF No. 22 at 3–5. It further asserts that the categories of

documents CSI seeks are privileged and, therefore, are not part of the record. Id. at 4–5. CSI also

seeks to compel the public filing of the D&F Memo. ECF No. 18 at 7–8. The Government

contends that the memo contains competition-sensitive information and should remain sealed

pending the outcome of this litigation.

3 II. LEGAL STANDARDS

In a bid protest action, the Court “review[s] the agency’s decision pursuant to the standards

set forth in section 706” of the Administrative Procedure Act (“APA”). 28 U.S.C. § 1491(b)(4);

see Banknote Corp. of Am., Inc. v. United States, 365 F.3d 1345, 1350 (Fed. Cir. 2004). Under

such standard, the Court’s task is “to apply the appropriate APA standard of review, 5 U.S.C.

§ 706, to the agency decision based on the record the agency presents” to the Court. Axiom Res.

Mgmt., Inc. v. United States, 564 F.3d 1374, 1379–80 (Fed. Cir. 2009) (emphasis in original)

(quoting Fla. Power & Light Co. v. Lorion, 470 U.S. 729, 743–44 (1985)). As the United States

Court of Appeals for the Federal Circuit has explained, “[t]he purpose of limiting review to the

record actually before the agency is to guard against courts using new evidence to ‘convert the

“arbitrary and capricious” standard into effectively de novo review.’” Id. at 1380 (quoting

Murakami v. United States, 46 Fed. Cl. 731, 735 (2000), aff’d, 398 F.3d 1342 (Fed. Cir. 2005)).

In certain instances, a plaintiff may allege that the record filed by the Government is

incomplete or that the Court should supplement the record with extra-record evidence. Different

standards govern motions to complete and to supplement the administrative record. See ELB

Servs., LLC v. United States, 172 Fed. Cl. 233, 241 (2024).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Nixon v. Warner Communications, Inc.
435 U.S. 589 (Supreme Court, 1978)
Florida Power & Light Co. v. Lorion
470 U.S. 729 (Supreme Court, 1985)
Subpoena Duces Tecum
156 F.3d 1279 (D.C. Circuit, 1998)
Axiom Resource Management, Inc. v. United States
564 F.3d 1374 (Federal Circuit, 2009)
Baystate Technologies, Inc. v. Bowers
283 F. App'x 808 (Federal Circuit, 2008)
Murakami v. United States
398 F.3d 1342 (Federal Circuit, 2005)
Am-Pro Protective Agency, Inc. v. United States
281 F.3d 1234 (Federal Circuit, 2002)
Balintulo v. Daimler AG
727 F.3d 174 (Second Circuit, 2013)
Tafas v. Dudas
530 F. Supp. 2d 786 (E.D. Virginia, 2008)
Scott Paper Co. v. United States
943 F. Supp. 489 (E.D. Pennsylvania, 1996)
Smith v. United States
114 Fed. Cl. 691 (Federal Claims, 2014)
Stand Up for California! v. United States Department of Interior
71 F. Supp. 3d 109 (District of Columbia, 2014)
Safari Club International v. Jewell
111 F. Supp. 3d 1 (District of Columbia, 2015)
DNC Parks & Resorts at Yosemite, Inc. v. United States
127 Fed. Cl. 435 (Federal Claims, 2016)
In Re United States
138 S. Ct. 371 (Supreme Court, 2017)
In Re United States
583 U.S. 29 (Supreme Court, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
Can Softtech, Inc v. United States, Counsel Stack Legal Research, https://law.counselstack.com/opinion/can-softtech-inc-v-united-states-uscfc-2024.