Core Dc LLC v. United States

United States Court of Federal Claims·Decided August 27, 2026·No. 26-36·Published

Opinion

In the United States Court of Federal Claims

CORE DC, LLC,

Plaintiff,

No. 26-36

v. (Originally Filed: August 7, 2026)

THE UNITED STATES, (Reissued: August 27, 2026)

Defendant.

Jonathan D. Shaffer, John M. Tanner, Haynes Boone, LLP, Tysons, Virginia, for Plaintiff. Matthew J. Carhart, Senior Trial Counsel, Geoffrey M. Long, Assistant Director, Patricia M. McCarthy, Director, Commercial Litigation Branch, Brett A. Shumate, Assistant Attorney General, Civil Division, United States Department of Justice, Washington, DC, for Defendant. William Robinson, David M. Tatarsky, Clint Gerdine, Assistant General Counsel, Federal Bureau of Prisons, United States Department of Justice, Washington, DC, of counsel.

OPINION AND ORDER

HADJI, Judge.

This is a procurement protest involving the Federal Bureau of Prisons’ (BOP)

decision not to designate a contract as a small business set-aside. The Protester, CORE DC, alleges: (1) BOP conducted its market research in an arbitrary and capricious manner by not repeatedly contacting a certain small business; (2) BOP improperly applied a higher standard when considering three small businesses’ responses to that market research; and (3) BOP’s positive treatment of an other-than-small business undermines BOP’s decision not to set the contract aside for small businesses. See ECF 18 at 14-16. Before the Court are the Protester’s Motion for Judgment on the Administrative Record (ECF 18) and the Government’s Cross-Motion for Judgment on the Administrative Record (ECF 21). For the following reasons, the Protester’s Motion for Judgment on the Administrative Record is DENIED, and the Government’s Cross-Motion for Judgment on the Administrative Record is GRANTED.1

1 This Opinion was issued under seal on August 7, 2026. The parties were directed to propose redactions within 14 days of issuance of the Opinion. The Government proposed redactions, but the Court did not find them warranted. The Court hereby publicly releases the Opinion in full.

BACKGROUND

This procurement protest is in response to Request for Proposal No. 15BRRC-25-

R-00000018 (the Solicitation), issued by BOP on February 28, 2025. AR 312. The Solicitation contemplates award of a firm-fixed price indefinite delivery / indefinite quantity (IDIQ) contract to operate a males-only Residential Reentry Center (RRC) and provide home confinement services within 150 miles of the RRC. AR 622-30. The Solicitation specifies the facility must be located in one of the following areas: Washington, DC; Montgomery County, MD; Prince George’s County, MD; Arlington County, VA; or Fairfax County, VA. AR 630. The Solicitation sets capacity requirements and requires that the facility be fully operational and ready for performance within 240 days of contract award. AR 630, 634. The Protester is the incumbent contractor. See AR 1038.

I. First Set-aside Decision and GAO Protest Before issuing the Solicitation, BOP conducted market research to determine whether the procurement should be set aside for small businesses. See AR 153-58. On October 22, 2024, BOP posted a Sources Sought Notice (SSN) on SAM.gov, searched the Small Business Administration (SBA) Dynamic Small Business Search website, and reviewed potentially eligible contractors in the eastern United States under NAICS code 623990 (Other Residential Care Facilities). AR 2; 153-58. The SSN yielded five responses, only two of which BOP considered legitimate, and only one of which was from a small business. AR 153-54. BOP’s additional research identified several other small businesses, including the Protester, that appeared capable of offering the required services. AR 153- 58. None of these other businesses responded to the SSN, and two did not respond to email outreach. AR 154-55. Based on the lack of SSN responses and BOP’s observation that “the majority of the firms capable of providing residential reentry center services, and who respond to [BOP’s] requirements, are primarily non-profit organizations or large businesses,” BOP concluded that “there is no reasonable expectation that proposals would be received from at least two or more responsible small business concerns or that award would be made at fair market prices.” AR 199-200. As a result, on January 21, 2025, BOP decided not to set the Solicitation aside for small business concerns. AR 200. BOP’s small business liaison and the SBA procurement center representative concurred in this decision. AR 201-04; 206-08.

On April 21, 2025, the Protester filed a pre-award protest at the Government Accountability Office (GAO), challenging BOP’s decision and underlying market research. AR 696-706; see also Comp. Gen. B-423475.1; B-423475.2. BOP decided to take corrective action, which led to the dismissal of the GAO protest. AR 707-09. Specifically, BOP stated that it would “extend the date proposals are due, issue a new [SSN], … and update its market research based on the new [SSN].” AR 707.

II. Second Set-aside Decision and GAO Protest On May 7, 2025, BOP posted an updated SSN on SAM.gov. AR 716-26. The updated SSN included ten questions about businesses’ potential ability to grapple with a range of issues related to operating an RRC under the Solicitation, including dealing with legal hurdles and community opposition. AR 720. BOP also emailed points of contact at “all small business[] contractors currently providing RRC services to BOP; responding entities from [the initial SSN]; and other potential small businesses to gauge interest and capabilities for this opportunity.” AR 1034-35. In total, BOP emailed 16 organizations. AR 1035-36. BOP received seven responses to the updated SSN. AR 1036. BOP disregarded three responses because they were, respectively, (1) incomplete, (2) about unrelated services, and (3) from an other-than-small business. AR 1036-38.

Of the four small businesses that submitted valid responses, BOP did not find any of them fully “responsible” for purposes of market research. See AR 1036-39. BOP found one business non-responsible, AR 1036-37, and that finding is not challenged in this case. BOP conducted detailed analysis of the Protester and two other small businesses, designated in the market research addendum as Respondents Four and Five. See AR 1037- 39. BOP found Respondent Four “minimally responsible” because it had some experience with related services but did not demonstrate experience with RRC work or 24/7 facilities and did not provide information about a particular facility or related zoning issues. AR 1037. In BOP’s view, Respondent Four was not “a viable prime contractor” for market research purposes. Id. And BOP found Respondent Five not responsible because it did not identify a specific, available facility in the region, did not provide zoning information, and did not have experience offering related services at the federal level. AR 1037-38. Respondent Five indicated that facility address and zoning information could be provided upon request, AR 723, and BOP emailed Respondent Five to request that information on July 1, 2025, AR 741-42. Though Respondent Five claimed that it could provide the requested zoning documentation, no documents were submitted. AR 1038. Finally, BOP found CORE DC, the Protester, “technically responsible but functionally not viable based on continued facility unavailability, lack of operating history, and persistent site-specific uncertainty.” AR 1039. Specifically, BOP noted that the Protester, despite being the incumbent on the contract, has not been able to open and operate an RRC during the five- year life of that contract. See AR 1038. Based on these assessments, on July 29, 2025, BOP concluded that the Solicitation should be unrestricted because BOP did not have a reasonable expectation that two or more responsible small businesses would submit proposals sufficient for the complexity of the procurement. See AR 1039. Once again, BOP’s small business liaison and the SBA procurement center representative concurred in this decision. See AR 1056-59.

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

Core Dc LLC v. United States, (uscfc 2026).

Core Dc LLC v. United States (Core Dc LLC v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Weeks Marine, Inc. v. United States
575 F.3d 1352 (Federal Circuit, 2009)
Tyler Construction Group v. United States
570 F.3d 1329 (Federal Circuit, 2009)
Advanced Data Concepts, Incorporated v. United States
216 F.3d 1054 (Federal Circuit, 2000)
R & W Flammann Gmbh v. United States
339 F.3d 1320 (Federal Circuit, 2003)
Nvt Technologies, Inc. v. United States
370 F.3d 1153 (Federal Circuit, 2004)
Bannum, Inc. v. United States
404 F.3d 1346 (Federal Circuit, 2005)
Advanced American Construction, Inc. v. United States
111 Fed. Cl. 205 (Federal Claims, 2013)
Res-Care, Inc. v. United States
735 F.3d 1384 (Federal Circuit, 2013)
Adams and Associates, Inc. v. United States
741 F.3d 102 (Federal Circuit, 2014)
Kingdomware Technologies, Inc. v. United States
579 U.S. 162 (Supreme Court, 2016)
National Government Services v. United States
923 F.3d 977 (Federal Circuit, 2019)
Benchmade Knife Co. v. United States
79 Fed. Cl. 731 (Federal Claims, 2007)
Baird Corp. v. United States
30 Cont. Cas. Fed. 70,703 (Court of Claims, 1983)