Kropp Holdings, Inc. v. United States

CourtUnited States Court of Federal Claims
DecidedMarch 5, 2026
Docket24-2155
StatusPublished

This text of Kropp Holdings, Inc. v. United States (Kropp Holdings, 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
Kropp Holdings, Inc. v. United States, (uscfc 2026).

Opinion

In the United States Court of Federal Claims No. 24-2155 (Filed Under Seal: February 10, 2026) Reissued: March 5, 2026 *

* * * * * * * * * * * * * * * * * * * * * * * KROPP HOLDINGS, INC., * * Plaintiff, * * v. * * THE UNITED STATES, * * Defendant, * * and * * ASSOCIATED ENERGY GROUP, LLC, * * Defendant-Intervenor. * * * * * * * * * * * * * * * * * * * * * * * * *

Craig A. Holman, with whom were Kara L. Daniels, Thomas A. Pettit, Roee Talmor, and Nicole A. Williamson, Arnold & Porter Kaye Scholer LLP, all of Washington, D.C., for Plaintiff.

John H. Roberson, Senior Trial Attorney, Commercial Litigation Branch, Civil Division, U.S. Department of Justice, with whom were Douglas K. Mickle, Acting Deputy Director, Patricia M. McCarthy, Director, Brett A. Shumate, Acting Assistant Attorney General, all of Washington, D.C., for Defendant, and Steven Sosko, Senior Counsel, Defense Logistics Agency, of Fort Belvoir, VA, of counsel.

Todd J. Canni, with whom were Ariella M. Cassell of Los Angeles, CA, and Kevin Barnett, Stephen Ruscus, Kevin N. Dorn, and Kaitlyn E. Toth, Baker & Hostetler LLP, all of Washington, D.C., for Defendant-Intervenor.

* Pursuant to the protective order entered in this case, this opinion was filed initially under seal. The parties provided proposed redactions of confidential or proprietary information, which the Court adopted in addition to making minor typographical and stylistic edits. OPINION AND ORDER

SOMERS, Judge.

Associated Energy Group, LLC’s (“AEG”) motion for reconsideration is akin to an unsuccessful challenge by an NFL coach in football. Assume, after a wide receiver catches the football, the referee deems the pass “incomplete” for two separate reasons. First, the receiver’s foot was out of bounds when he made the catch. Second, the receiver did not have sufficient control of the ball for the catch to be ruled complete. The coach challenges the play, arguing at length that the receiver did have sufficient control of the ball. The coach emphasizes that the ball was not bobbling in the receiver’s hands, the receiver had two hands on the ball, the ball was tucked firmly under the receiver’s arm, the ball never touched the turf, and the receiver maintained control of the ball long enough to make a football move. See 2025 NFL RULEBOOK, Rule 8, § 1, arts. 3–4. While these arguments, if true, may prove that the receiver did, in fact, have control of the ball, the pass is still incomplete because the coach failed to address the fact that the receiver’s foot was out of bounds. See id.

Much like the hypothetical NFL coach’s futile arguments regarding the receiver’s control of the football, no matter how many new arguments AEG asserts regarding whether there was timely government control of its proposal, AEG’s motion cannot prevail because—just as the coach did not address the fact that the receiver’s foot was out of bounds—AEG does not address its insufficient merits argument that its proposal was received by, 1 and not prior to, the deadline for proposal submission. However, just as the Court held in its merits opinion, in order for the government control exception to the late-is-late rule to apply, the proposal must be received prior to the time set for receipt of offers. For this reason, and others discussed below, the Court’s call stands.

Before the Court is AEG’s 37-page motion for reconsideration of an issue it devoted just five paragraphs to in its motion for judgment on the administrative record (“MJAR”). Compare ECF No. 92-1, with ECF No. 65-1 at 21–22. In its motion, AEG contends that the Court should reconsider its determination that the government control exception did not apply to its otherwise late submissions. See ECF No. 92-1 at 1; Kropp Holdings, Inc. v. United States, 176 Fed. Cl. 512, 533–39 (2025). However, notwithstanding myriad arguments that AEG asserts justify reconsideration, at bottom AEG fails to address the Court’s actual holdings on this issue and instead emphasizes less important portions of the Court’s opinion with which it disagrees. In addition to missing the Court’s holdings, AEG asserts new theories not raised in AEG’s merits briefing and attempts to reassert arguments that the Court already found unpersuasive the first time around. Neither these new theories nor rehashed arguments justify reconsideration.

For the reasons that follow, the Court agrees with Plaintiff Kropp Holdings, Inc. (“KHI”) and the government that reconsideration is not warranted; accordingly, the Court denies AEG’s motion.

1 As is explained later in this opinion, AEG’s use of “by,” when read in context, clearly meant “at” and not “before.” 2 BACKGROUND

A. Factual Background and Procedural History

The facts and procedural history of this case are largely set forth in the Court’s original opinion in this bid protest. See Kropp Holdings, Inc., 176 Fed. Cl. at 524–26. For the sake of brevity, the Court only recounts here the factual background and procedural history salient to AEG’s motion.

KHI brought suit alleging eight reasons why the Court should overturn the Defense Logistics Agency’s (“DLA”) decision to award an aviation into-plane fuel contract, known as the AIR Card contract (“AIR Card”), to AEG. Id. at 523–24. The Court issued an opinion on May 9, 2025, finding that KHI was successful on four of its protest grounds. Id. at 524. Therefore, the Court permanently enjoined DLA from “continuing transition activities or obtaining performance from AEG” under the contract. Id. at 564. One of the grounds upon which KHI was successful was its argument that AEG’s proposal was not timely submitted. It is this holding that AEG challenges here. The Court’s holding on this point was two-fold. First, the Court determined that:

the [Request for Proposals (“RFP”)] establishes 10:00 a.m. as the submission deadline and states that “timeliness of an offer will be based upon the receipt time stamp on the submission inbox.” The receipt time stamps on the Energyfuelcards@dla.mil submission inbox show that AEG’s Volumes 1 and 2 were received after 10:00 a.m. Because DLA did not timely receive AEG’s proposal, AEG’s proposal is late and thus “tantamount to no proposal at all.”

Id. at 533 (citations omitted). Second, the Court held that the government control exception to the late-is-late rule did not apply to AEG’s proposal submission: “Because AEG argues that acceptable evidence in the form of email screenshots establishes that its Volume 1 submission was received at 10:00 a.m., and not prior to 10:00 a.m., AEG’s argument fails, and its submission cannot fall under the government control exception.” Id. at 534 (citing ECF No. 65-1 at 21; FAR 52.212-1(f)(2)(i)(B)). The Court also observed that “[e]ven if metadata could cure AEG’s argument (it cannot, as AEG waived any such argument by not raising it in its motion), AEG’s Volume 1 submission was still late according to the metadata for purposes of the government control exception.” Id. (emphasis added) (footnote omitted). And, in a footnote to the preceding quotation, the Court further noted that “AEG does not develop this argument in briefing. Instead, AEG tried to argue this point at oral argument. Although AEG waived any metadata argument because it did not make such argument in its MJAR, the Court will discuss the argument anyway, as the discussion further demonstrates the lateness of AEG’s proposal.” Id. at 534 n.7 (citations omitted).

Accordingly, for these two reasons, and several other reasons not relevant to AEG’s motion for reconsideration, the Court issued a permanent injunction and required the agency to reconsider its decision awarding the fuel card contract to AEG. See id. at 538, 564. AEG subsequently filed its own bid protest challenging DLA’s re-award of the AIR Card contract to KHI in accordance with the Court’s opinion.

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Kropp Holdings, Inc. v. United States, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kropp-holdings-inc-v-united-states-uscfc-2026.