MORI Associates, Inc. v. United States
102 Fed. Cl. 503 | United States Court of Federal Claims | 2011
What This Case Means for Subcontractors
MORI Associates challenged the National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK) for canceling an IT services contract after MORI won the bid protest. The court ruled the cancellation was arbitrary and capricious because the agency failed to follow proper cost comparison rules under federal procurement guidelines. The court ordered the agency to stop the cancellation and awarded MORI a permanent injunction. This matters to subcontractors because it protects your right to challenge unfair contract cancellations and ensures agencies must follow proper procedures even after awarding contracts.
Key Takeaways
- •If a government agency cancels a contract you won after you protested, you can sue in federal court—the agency must have a rational, documented reason
- •Agencies must follow OMB Circular A-76 cost comparison rules when deciding to cancel procurements; skipping these steps gives you grounds to win an injunction
- •A permanent injunction stops the agency from moving forward, which can force them back to the table with you as the winning bidder
The cancellation of the initial procurement was arbitrary, and plaintiff is entitled to a permanent injunction.
Frequently Asked Question
Can I sue if a government agency cancels a contract I won after I protested?
Yes. If the agency cancels without a rational basis or fails to follow federal procurement rules like OMB Circular A-76, you can file in the U.S. Court of Federal Claims. The court can issue an injunction stopping the cancellation and forcing the agency to honor your award or restart the process fairly.
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