Os-Db-Jv-2 LLC v. United States

United States Court of Federal Claims·Decided July 16, 2026·No. 26-973·Unpublished

Opinion

In the United States Court of Federal Claims No. 26-973C (Filed: July 16, 2026)

) OS-DB-JV-2 LLC, ) ) Plaintiff, ) ) v. ) ) THE UNITED STATES, ) ) Defendant. ) )

ORDER

On July 7, 2026, Plaintiff, OS-DB-JV-2 LLC (“OS-DB”), filed an action pursuant to 28 U.S.C. § 1491(b) in this Court, challenging the decision of Defendant, the United States — acting by and through the Department of Veterans Affairs (“VA”) — to remove OS- DB from a service-disabled veteran-owned small business (“SDVOSB”) set-aside procurement for janitorial services. See generally ECF No. 1 (“Compl.”).

The VA issued Solicitation No. 36C24825R0040 (the “Solicitation” or “RFP”) for this FAR Part 15 procurement on May 7, 2025. Compl. ¶ 12. OS-DB acknowledges that “[t]he Solicitation . . . provide[d] that a joint venture may be eligible as an SDVOSB if it complies with 13 C.F.R. § 128.402 and the managing venturer makes the representations required by the clause.” Id. ¶ 13. The RFP further cautioned that “[p]roposals from offerors that fail[] to meet the minimum requirements — including a material failure to conform with the instructions set forth [in the Solicitation] — will be deemed unacceptable and will not be further considered.” ECF No. 17-1 at 89 (RFP § E.11).

OS-DB was one of 15 offerors to submit initial proposals in response to the RFP. Compl. ¶ 12. “On November 13, 2025, after evaluating initial proposals, the VA established a competitive range of two offerors: OS-DB (the only joint-venture offeror in the range) and one other offeror.” Id. ¶ 16 (emphasis added). OS-DB, however, did not submit the required certification pursuant to 13 C.F.R. § 128.402(e) with its initial proposal, see ECF No. 5 at 4, a fact OS-DB’s counsel later conceded during oral argument.

The VA subsequently issued a number of RFP amendments, including the final amendment, Amendment 004, on March 9, 2026. Compl. ¶ 18. Amendment 004 succinctly articulated its purposes: “The purpose of . . . amendment [004] is to request proposal revisions due to the solicitation’s updated period of performance, as well as inform joint venture offerors of the requirements of 13 C.F.R. 128.402.” ECF No. 17-1 at 163 (Amendment 004) (emphasis added). To those ends, Amendment 004: (1) required the remaining two offerors to re-submit all proposal volumes, Compl. ¶ 18; and (2) included a “‘Note for Joint Venture (JV) Offerors’ [which] stated that, to comply with 13 C.F.R. § 128.402(e), JV offerors ‘must include in their offer a certification’ signed by an authorized official of each partner, attesting to compliance with 13 C.F.R. § 128.402(c) and (d).” Compl. ¶ 18 (quoting Amedmend 004).

Offerors were required to submit final proposal revisions by March 13, 2026. Compl. ¶ 20. OS-DB timely submitted its final proposal revision on the day revisions were due. Id. ¶ 21. While OS-DB’s “submission transmittal email expressly named the ‘JOINT VENTURE 13 C.F.R. 128.402 COMPLIANCE CERTIFICATION’ as an attached document[,] [d]ue to an inadvertent electronic attachment error, the certification file was not, in fact, transmitted with the package.” Id. OS-DB contends that “[t]he § 128.402(e) certification was fully executed and signed the day before” (i.e., March 12, 2026), id. ¶ 20, “and was omitted only through an inadvertent electronic-attachment error,” id. ¶ 2.

Thereafter, “[o]n March 26, 2026, the VA notified OS-DB that it had been removed from the competition, citing . . . the absence of the § 128.402(e) certification.” Compl. ¶ 23. OS-DB filed a timely protest with GAO, challenging the VA’s decision to exclude OS-DB from the procurement. Id. ¶ 26. “GAO denied the protest on June 16, 2026, concluding that the VA reasonably treated the certification as a material term.” Id.

On July 7, 2026, OS-DB filed its complaint in this Court. See Compl. The crux of OS-DB’s complaint is that the VA’s exclusion of OS-DB from the procurement at issue was arbitrary and capricious 1 because, amongst other reasons, the VA improperly failed

1 Pursuant to 28 U.S.C. § 1491(b)(4), this Court decides the merits of bid protest claims using the

APA’s standard of review, 5 U.S.C. § 706(2)(A), and accordingly considers a challenged agency procurement decision to determine whether it is “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.” Nat’l Gov’t Servs., Inc. v. United States, 923 F.3d 977, 981 (Fed. Cir. 2019); see also PGBA, LLC v. United States, 389 F.3d 1219, 1226 (Fed. Cir. 2004) (“[W]hen

2 to seek clarification from OS-DB pursuant to FAR 15.306(a) regarding OS-DB’s missing certification. 2 Compl. ¶¶ 31-33 (Count II). OS-DB explains that — as the incumbent provider of janitorial services for the VA — OS-DB had updated its joint venture status with the VA as recently as July 2025. Id. ¶ 15. Accordingly, OS-DB’s “SDVOSB joint- venture status [was] neither new nor unverified.” Id. ¶ 14. OS-DB thus asserted that its omission of the required certification from its final proposal revision amounted to no more than “a clerical attachment error during assembly of the electronic submission package,” and thus could be corrected with a mere clarification. Id. ¶ 21.

On July 8, 2026, OS-DB filed a motion for a preliminary injunction, requesting this Court to enjoin the VA from making an award for janitorial services pursuant to the Solicitation during the pendency of OS-DB’s bid protest. ECF No. 5. Later that same day, this Court ordered OS-DB to file a status report, on or before July 9, 2026, providing this Court with its “best two cases in support of each of the following two propositions: (1) the certification that was not timely included with Plaintiff’s proposal submission is nevertheless an immaterial defect; and (2) the government was obligated to engage in either clarifications or discussions with Plaintiff under these circumstances.” ECF No. 13. This Court further ordered “the government [to] file a combined response to [OS-DB’s] Motion for Preliminary Injunction, ECF No. 5, and [OS-DB’s] status report[,]” on or before July 13, 2026. ECF No. 13.

On July 9, 2026, OS-DB filed its required status report, ECF No. 15; and the government filed its combined response on July 13, 2026, ECF No. 17 (“Def. Resp.”). On July 14, 2026, this Court held oral argument on OS-DB’s pending motion for a preliminary injunction, ECF No. 5. See ECF No. 16.

At conclusion of oral argument, this Court issued an oral ruling, denying OS-DB’s motion for a preliminary injunction, ECF No. 5. This order more formally memorializes that decision.

* * * *

While this Court may issue a preliminary injunction pursuant to 28 U.S.C. § 1491

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