In KL3, LLC v. United States, U.S. Court of Federal Claims, No. 24-2028 (June 2, 2025, reissued June 12, 2025), KL3 challenged the Department of Defense’s award of two sole-source contracts under the SBA’s 8(a) program, arguing that the agency improperly circumvented small business rules by breaking up and reclassifying work previously solicited under the ENCORE III procurement. KL3 contended that the awards to an 8(a) firm violated 13 C.F.R. § 124.504(a), which bars procuring agencies from shifting previously set-aside small business work into the 8(a) program. Despite the legal nuance, KL3’s protest was dismissed for lack of standing and failure to prove prejudice.
Articles Posted in Department of Defense (DoD)
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COFC Claims Its Turf: Court Affirms Jurisdiction Over OTA Protests
Raytheon Company v. United States, U.S. Court of Federal Claims, No. 24-1824C (Feb. 24, 2025) addresses a long-standing legal gray area: Can the Court of Federal Claims (COFC) hear bid protests involving Other Transaction Agreements (OTAs)? In Raytheon v. United States, the Court ruled definitively: Yes, it can. This landmark decision confirms that the Court is the de facto forum for bid protests challenging Department of Defense (DoD) OTA decisions—at least where the agency is pursuing products or services for its direct benefit.