Life Science Logistics (LSL), the incumbent contractor for the Strategic National Stockpile, protested the government's award of a new contract to a competitor, Integrated Quality Solutions (IQS). Under the Competition in Contracting Act (CICA), LSL's protest triggered an automatic 100-day stay preventing IQS from performing the contract while the Government Accountability Office (GAO) reviewed the dispute. However, the General Services Administration (GSA) issued a Determination and Findings to override this stay, claiming urgent and compelling circumstances existed. LSL sued in the Court of Federal Claims, arguing the override was unlawful. While the case was pending, the GAO sustained LSL's protest, and the government withdrew the override, leading the government to argue the appeal was moot. The Court of Federal Claims ruled in LSL's favor, declaring the override arbitrary and capricious without requiring LSL to prove equitable factors like irreparable harm.
The Federal Circuit first addressed the mootness argument, concluding that the dispute fell within the 'capable of repetition yet evading review' exception. The court reasoned that CICA stays and their overrides are limited to a maximum of 100 days, a period too short to complete full judicial review, including an appeal to the Supreme Court. Furthermore, the court found a reasonable expectation that LSL, as a dominant player in the tight SNS market, would face similar disputes with the government again. On the merits, the court analyzed the statutory framework of CICA, the Tucker Act, and the Administrative Procedure Act (APA). The court held that Congress established a specific 'Procurement Protest System' where the filing of a protest automatically triggers a stay. When an agency overrides this stay, the protestor may challenge the decision as arbitrary and capricious under the APA. The court rejected the government's argument that the protestor must also satisfy the traditional four-factor test for preliminary injunctions (likelihood of success, irreparable harm, balance of equities, and public interest). The court explained that importing these equitable factors would add a burden not found in the statute and would incentivize the government to override stays without cause, knowing the protestor would face a high bar to restore the stay. The court distinguished its prior decision in PGBA, noting that the relief here merely restored the statutory default stay rather than coercively setting aside the contract award itself.
The decision reaffirms that the automatic stay under CICA is a robust protection for bid protesters. Agencies must now provide a rational, specific explanation for overriding a stay, as courts will not require protesters to prove irreparable harm to challenge an arbitrary override. The ruling preserves the 100-day stay window as a meaningful tool for protesters, preventing the government from effectively nullifying the stay by overriding it and forcing the protester to meet a higher equitable standard. The case was remanded with instructions to affirm the Court of Federal Claims' judgment.
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