Life Science Logistics, LLC v. United States

Court of Appeals for the Federal Circuit·Decided April 15, 2026·No. 24-1522·Published

Opinion

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, argued for plaintiff-appellee. Also represented by WILLIAM R. LEVI.

EVAN WISSER, Commercial Litigation Branch, Civil Division , United States Department of Justice, Washington, DC, argued for defendant-appellant. Also represented by BRIAN M. BOYNTON, PATRICIA M. MCCARTHY, DOUGLAS K. MICKLE.

2 LIFE SCIENCE LOGISTICS, LLC v. US

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. Appellee 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 capable of repetition yet evading review is applicable here, giving 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 nationwide 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 pursuant to contracts awarded by the General Services Administration (“GSA”). Today, LSL holds more SNS contracts than any other entity. Each contract, the last of which expires 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.

LIFE SCIENCE LOGISTICS, LLC v. US 3

(“NCR”), an area that includes New York, Philadelphia, Baltimore, and Washington, D.C. LSL received satisfactory 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 Contract ”), 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 contracts 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 solicitations , 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 objection with GAO.

LSL’s latest protest triggered an automatic stay under the Competition in Contracting Act (“CICA”), which prevented 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 contract 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 4 LIFE SCIENCE LOGISTICS, LLC v. US

concerning a protest within 100 days after the date the protest 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 Determination and Findings (“D&F”), in which it found that “urgent and compelling circumstances now exist that significantly 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 declaratory judgment or, alternatively, an injunction reimposing the CICA stay.

The Court of Federal Claims reviewed the case expeditiously . 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 equitable factors traditionally governing preliminary injunction 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 automatically . . . . To allow an arbitrary override

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 appealed . Ten days later, on February 27, 2024, GAO sustained 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 appeal from a final decision of the United States Court of Federal 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). “We give deference to the Court of Federal Claims’ decision to grant or deny injunctive relief, only disturbing the court’s decision if it abused its discretion.” Oak Grove Techs., LLC v. United States, 116 F.4th 1364, 1375 (Fed. Cir. 2024) (internal quotation marks omitted). “An abuse of discretion exists where the Court of Federal Claims made a clear error of judgment in weighing the relevant factors or exercised its discretion based on an error of law or clearly erroneous fact finding.” Dell Fed. Sys., L.P. v. United States, 906 F.3d 982, 991 (Fed. Cir. 2018) (internal quotation marks omitted ).

III

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