This morning the Federal Circuit released a precedential opinion in a government contract case. Notably, Judge Newman dissented, but without an opinion. Here is the introduction to the majority’s opinion.
System Studies & Simulation, Inc. v. United States (Precedential)
System Studies & Simulation, Inc. (S3), an unsuccessful bidder for a government contract, filed a bid-protest action in the Court of Federal Claims (Claims Court). The Claims Court concluded that the federal contracting agency had acted arbitrarily and capriciously in one aspect of its decision. But the court nevertheless denied S3 relief on the ground that the deficient aspect of the decision did not prejudice S3, in that the contract award would have been the same regardless. System Studies & Simulation, Inc. v. United States, 152 Fed. Cl. 74 (2020) (CFC Opinion); System Studies & Simulation, Inc. v. United States, 152 Fed. Cl. 20 (2020) (Reconsideration Opinion).
S3 argues on appeal that there is a presumption of prejudice whenever the Claims Court determines that the agency acted irrationally in making an award decision. We reject that contention. And we see no clear error in the Claims Court’s determination that there was no prejudice in this case. We therefore affirm.