Life Science Logistics, LLC v. United States

CourtCourt of Appeals for the Federal Circuit
DecidedApril 15, 2026
Docket24-1522
StatusPublished

This text of Life Science Logistics, LLC v. United States (Life Science Logistics, LLC v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Life Science Logistics, LLC v. United States, (Fed. Cir. 2026).

Opinion

Case: 24-1522 Document: 65 Page: 1 Filed: 04/15/2026

United States Court of Appeals for the Federal Circuit ______________________

LIFE SCIENCE LOGISTICS, LLC, Plaintiff-Appellee

v.

UNITED STATES, Defendant-Appellant ______________________

2024-1522 ______________________

Appeal from the United States Court of Federal Claims in No. 1:23-cv-02116-ZNS, Judge Zachary N. Somers. ______________________

Decided: April 15, 2026 ______________________

DANIEL HAY, Sidley Austin LLP, Washington, DC, ar- gued for plaintiff-appellee. Also represented by WILLIAM R. LEVI.

EVAN WISSER, Commercial Litigation Branch, Civil Di- vision, United States Department of Justice, Washington, DC, argued for defendant-appellant. Also represented by BRIAN M. BOYNTON, PATRICIA M. MCCARTHY, DOUGLAS K. MICKLE. ______________________ Case: 24-1522 Document: 65 Page: 2 Filed: 04/15/2026

Before MOORE, Chief Judge, STARK, Circuit Judge, and OETKEN, District Judge. 1 STARK, Circuit Judge. The government appeals from a judgment of the Court of Federal Claims declaring that an agency’s decision to override an automatic statutory stay of performance of a newly awarded contract was arbitrary and capricious. Ap- pellee Life Science Logistics, LLC (“LSL”) contends that the government’s appeal is moot and we should, therefore, dismiss it for lack of jurisdiction. In the alternative, LSL asks us to affirm the trial court on the merits. We conclude that the exception to mootness for disputes that are capa- ble of repetition yet evading review is applicable here, giv- ing us jurisdiction to reach the merits. Doing so, we agree with the Court of Federal Claims. Thus, we affirm. I The Strategic National Stockpile (“SNS”) is a nation- wide network of facilities for the storage and deployment of medicines, vaccines, and medical supplies. The SNS is managed by the Administration for Strategic Preparedness and Response, an agency within the Department of Health and Human Services. Since 2007, LSL has operated multiple SNS sites pur- suant to contracts awarded by the General Services Admin- istration (“GSA”). Today, LSL holds more SNS contracts than any other entity. Each contract, the last of which ex- pires in the early 2030s, is worth millions of dollars and runs for many years. In 2011, LSL was awarded a 10-year contract to service the SNS warehouse in the National Capitol Region

1 Honorable J. Paul Oetken, District Judge, United States District Court for the Southern District of New York, sitting by designation. Case: 24-1522 Document: 65 Page: 3 Filed: 04/15/2026

LIFE SCIENCE LOGISTICS, LLC v. US 3

(“NCR”), an area that includes New York, Philadelphia, Baltimore, and Washington, D.C. LSL received satisfac- tory or better performance evaluations for its work under the NCR contract. In 2021, the NCR contract expired. At that point, the government and LSL agreed to an extension running through December 25, 2023 (the “Bridge Con- tract”), which the government had the option to extend by one month. In May 2022, shortly after the parties agreed to the Bridge Contract, the government issued a bid solicitation for a new 10-year contract to manage the NCR SNS facility (“NCR Contract”). LSL submitted a bid, as did one of its competitors, Integrated Quality Solutions LLC (“IQS”). Like LSL, IQS has been awarded other SNS contracts; it is currently the second largest player in the market, with con- tracts running into the 2030s. Servicing the SNS is IQS’s primary line of business. In August 2022, GSA awarded the NCR Contract to IQS. LSL filed a “written objection” (a “protest”) to the award with the Government Accountability Office (“GAO”). See 31 U.S.C. § 3551(1). Subsequently, after additional so- licitations, bids, awards, and protests, IQS was awarded the NCR Contract a second and, finally, a third time, the latter occurring on October 30, 2023. On November 20, 2023, LSL protested the third award by again filing an ob- jection with GAO. LSL’s latest protest triggered an automatic stay under the Competition in Contracting Act (“CICA”), which pre- vented GSA and IQS from beginning performance under the NCR Contract while GAO evaluated LSL’s protest, a period that could last, by statute, up to 100 days. See id. § 3553(d)(3)(A)(i) (“If the Federal agency awarding the con- tract receives notice of a protest . . . the contracting officer may not authorize performance of the contract to begin while the protest is pending.”); see also id. § 3554(a)(1) (“[T]he Comptroller General shall issue a final decision Case: 24-1522 Document: 65 Page: 4 Filed: 04/15/2026

concerning a protest within 100 days after the date the pro- test is submitted.”). On December 7, 2023, however, only a few weeks into the stay period, GSA decided to override the stay pursuant to a different provision of CICA. See id. § 3553(d)(3)(C). In support of the override, GSA issued a De- termination and Findings (“D&F”), in which it found that “urgent and compelling circumstances now exist that sig- nificantly affect the interests of the United States and do not permit waiting for the GAO decision in the protest,” and that “it is in the best interest of the United States to override the mandatory stay of performance and authorize IQS to being performance of the Awarded [NCR] Contract.” J.A. 246, 252. Six days later, on December 13, 2023, LSL filed suit in the Court of Federal Claims, alleging that the override was unlawful because the D&F’s reasoning was arbitrary and capricious, in violation of the Administrative Procedure Act (“APA”), 5 U.S.C. § 706(2). As relief, LSL requested a de- claratory judgment or, alternatively, an injunction reim- posing the CICA stay. The Court of Federal Claims reviewed the case expedi- tiously. On December 21, 2023, the court held a hearing, at the conclusion of which it ruled in favor of LSL, issuing a declaratory judgment that the override was arbitrary and capricious. In reaching that conclusion, the court rejected the government’s contention that LSL was required to prove an entitlement to injunctive relief under the four eq- uitable factors traditionally governing preliminary injunc- tion motions, i.e., likelihood of success on the merits, irreparable harm, balance of the equities, and the public interest. The court explained: In creating the CICA stay, Congress decided that injunctive relief factors need not be invoked when a bid protest is timely filed with the GAO, instead requiring that contract performance be stayed au- tomatically. . . . To allow an arbitrary override Case: 24-1522 Document: 65 Page: 5 Filed: 04/15/2026

LIFE SCIENCE LOGISTICS, LLC v. US 5

decision to insert the injunctive relief requirements into this process would convert the CICA stay into something other than what Congress created. J.A. 107. On February 17, 2024, the government timely ap- pealed. Ten days later, on February 27, 2024, GAO sus- tained LSL’s most recent protest, leading GSA to withdraw the override. See Matter of: Life Sci. Logistics, LLC, No. B- 421018.4 et al., 2024 WL 982583, at *12 (Comp. Gen. Feb. 27, 2024). II “The United States Court of Appeals for the Federal Circuit shall have exclusive jurisdiction [over] . . . an ap- peal from a final decision of the United States Court of Fed- eral Claims.” 28 U.S.C. § 1295(a)(3). “We review the Court of Federal Claims decisions de novo for errors of law and for clear error on findings of fact.” Sys. Fuels, Inc. v. United States, 818 F.3d 1302, 1305 (Fed. Cir. 2016).

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Life Science Logistics, LLC v. United States, Counsel Stack Legal Research, https://law.counselstack.com/opinion/life-science-logistics-llc-v-united-states-cafc-2026.