International Business Sales & Services Corporation v. United States

CourtUnited States Court of Federal Claims
DecidedJune 3, 2026
Docket26-401
StatusPublished

This text of International Business Sales & Services Corporation v. United States (International Business Sales & Services 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.

Bluebook
International Business Sales & Services Corporation v. United States, (uscfc 2026).

Opinion

In the United States Court of Federal Claims Nos. 26-401 & 26-425 (Consolidated) (Filed: May 29, 2026) (Reissued: June 3, 2026) 1

**************************

INTERNATIONAL BUSINESS SALES & SERVICES CORPORATION,

Plaintiff,

v.

THE UNITED STATES,

Defendant,

and

@ORCHARD, LLC,

Defendant-Intervenor.

FISH AND LYNKER OCEAN ALLIANCE TEAM PARTNERS LLC,

Defendant.

1 This opinion was initially filed under seal to afford the parties an opportunity to propose appropriate redactions. The parties represented that they had no redactions. This opinion thus appears in full. Jon D. Levin, Huntsville, AL, for plaintiff, International Business Sales & Services Corporation, and for consolidated plaintiff, Fish and Lynker Ocean Alliance Team Partners LLC.

Olivia L. Lynch, Washington, D.C., for defendant-intervenor, @Orchard, LLC, with whom were Cherie J. Owen, James G. Peyster, and Issac D. Schabes, of counsel.

William J. Grimaldi, Assistant Director, United States Department of Justice, Commercial Litigation Branch, Civil Division, Washington, D.C., with whom were Brett A. Shumate, Assistant Attorney General, and Patricia M. McCarthy, Director, for defendant. Lauren Williams, Deputy Chief, and Andrew Parker Frank, Attorney, Office of General Counsel, US Department of Commerce, of counsel.

OPINION

BRUGGINK, Senior Judge.

Pending in these consolidated, post-award bid protests are the government’s and @Orchard, LLC’s (“@Orchard”) motions to dismiss in their entirety the claims of plaintiff International Business Sales & Services Corporation (“IBSS”) and consolidated plaintiff Fish and Lynker Ocean Alliance Team Partners LLC (“FLOAT”).

BACKGROUND 2

The solicitations at issue are (1) RFP No. 1305M423RNAAA0011 (“ProTech 2.0 Oceans”) and (2) RFP No. 1305M423RNFFK0006 (“ProTech 2.0 Fisheries”), both issued by the United States National Oceanic and Atmospheric Administration (“NOAA”). IBSS Compl. ¶ 1. Both ProTech 2.0 Oceans and ProTech 2.0 Fisheries were small business set-aside solicitations providing for multiple-award, indefinite delivery indefinite quantity (“IDIQ”) contracts with one five-year base period and one five-year option. See id. at ¶¶ 10, 13. The two solicitations used the same evaluation criteria, including corporate experience and past performance. Id. at ¶ 15. NOAA intended ProTech 2.0 Oceans to “obtain services for scientific data collection and stewardship, geospatial mapping of coastal areas, and

2 Unless otherwise indicated, these facts are drawn from the complaints. They are not in dispute. 2 community outreach services to position America’s coastal communities for the future.” Id. at ¶ 11. NOAA intended ProTech 2.0 Fisheries to “acquire national and international fishery management support, marine observations, environmental data collection, ecosystem studies, associated data and information services, and various impact analyses for science-based conservation and management of fishing communities.” Id. at ¶ 12.

Prior to the issuance of the solicitations, the Small Business Administration (“SBA”) approved a mentor-protégé agreement between IBSS (as the large business) and @Orchard (as the small). Id. at ¶ 9. From there, IBSS and @Orchard then created 1stMission LLC (“1stMission”)—a separate legal entity—as a mentor-protégé joint venture to pursue Federal contracts together. Id. To that end, 1stMission submitted proposals for both ProTech 2.0 Oceans and ProTech 2.0 Fisheries, id. at ¶ 18; however, neither IBSS nor @Orchard submitted proposals in their individual capacities. IBSS provided all of the corporate experience and past performance examples for 1stMission’s proposals. Id. at ¶¶ 19–20. FLOAT submitted a proposal for only the ProTech 2.0 Fisheries solicitation. FLOAT Compl. ¶ 15.

After the proposals but before the contract awards, IBSS and @Orchard had a falling out and informed the SBA that the mentor-protégé relationship between IBSS and @Orchard was no longer viable. IBSS Compl. ¶ 21. This led the SBA to terminate the mentor-protégé relationship between IBSS and @Orchard. Id. at ¶ 22. Still before the contract awards, and through correspondence with NOAA, IBSS informed NOAA that the SBA had dissolved the mentor-protégé relationship between IBSS and @Orchard and that IBSS would not perform under any potential contract award to 1stMission. See id. at ¶¶ 22–26. Nevertheless, NOAA awarded the 1stMission joint venture a ProTech 2.0 Fisheries contract on February 26, 2024, and a ProTech 2.0 Oceans contract on April 12, 2024. Id. at ¶ 27. 3 Although the mentor-protégé agreement was severed, the 1stMission joint venture as an entity still existed at the time of the contract awards and was not dissolved until mid-2025. Id. at ¶ 30. FLOAT received an award under the ProTech 2.0 Fisheries solicitation. FLOAT Compl. ¶ 15.

Following the contract awards, IBSS contacted NOAA to reiterate that “1stMission would not be able to perform the contract in the manner stated in its proposal” because IBSS would no longer be participating due to

3 The total number of awardees under the ProTech 2.0 Fisheries and ProTech 2.0 Oceans solicitations was twenty-three and eighteen, respectively. 3 the termination of the mentor-protégé relationship between IBSS and @Orchard. IBSS Compl. ¶ 28. And when NOAA later made task order awards to 1stMission after the dissolution of 1stMission as an entity, IBSS again contacted NOAA and sought an explanation as to how a non-entity could receive task orders. Id. at ¶¶ 30–32. IBSS also reminded NOAA that IBSS provided the entirety of 1stMission’s experience, past performance, and technical knowhow. Id. at ¶ 32. Later, NOAA “novated” 1stMission’s task orders to @Orchard, citing to 13 CFR § 125.9(h) as the basis for this decision. Id. at ¶¶ 34, 36. According to the government, after IBSS and FLOAT submitted their pre-filing notices on January 8, 2026, NOAA “reviewed its novations of the 1stMission/@Orchard contracts” and “determin[ed] that the novations inaccurately referenced 13 C.F.R. 125.9(h) rather than FAR Subpart 42.12.” Gov.’s Mot. Dismiss 6, ECF No. 32 (citing Gov.’s App. at DA14). Thus, NOAA “commenced pre-litigation corrective action” to ensure the correct regulation was followed. Id.

PROCEDURAL HISTORY

IBSS and FLOAT filed their complaints on March 11 and 17, 2026, respectively. While IBSS’s complaint protests the awards to 1stMission under both ProTech 2.0 Oceans and ProTech 2.0 Fisheries, FLOAT’s complaint only protests 1stMission’s award under ProTech 2.0 Fisheries. IBSS’s and FLOAT’s complaints, which are otherwise materially the same, contain two claims under a single count: (1) that “it was arbitrary, capricious, and an abuse of discretion for [NOAA] to proceed with issuing an award to 1st Mission, having been informed by IBSS that the basis of 1sMission’s proposal was no longer true or valid”; and (2) that the authority NOAA invoked to justify the novation (13 CFR § 125.9(h)) is facially inapplicable, thereby rendering the novation contrary to law and itself further evidence that “the award to 1stMission was arbitrary, capricious, an abuse of discretion, and otherwise contrary to law.” IBSS Compl. ¶¶ 50, 52–53; FLOAT Compl. ¶¶ 48, 50–51.

On March 13, 2026, we granted @Orchard’s unopposed motion to intervene, see ECF No. 11, and on March 19, 2026, we ordered the consolidation of Case Nos. 26-401 (IBSS) and 26-425 (FLOAT).

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International Business Sales & Services Corporation v. United States, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-business-sales-services-corporation-v-united-states-uscfc-2026.