Bass, Berry & Sims attorney Richard Arnholt authored an article for Law360 providing insight into the Life Science Logistics LLC v. U.S. decision by the U.S. Court of Appeals for the Federal Circuit, which held that a protester challenging an override need only demonstrate that the agency’s decision was arbitrary and capricious rather than demonstrate entitlement to an injunction.
The decision clarifies how a protester should go about challenging the override of a stay under the Competition in Contracting Act, easing the burden for challengers. A protester seeking to restore the automatic stay may now pursue declaratory relief and concentrate its arguments on whether the agency’s determination and findings satisfy rational basis review, without the additional obligation of proving irreparable harm or satisfying the balance of equities.
Richard also clarified that timing can be just as important as how protesters frame their motions when challenging an override.
“The 100-day GAO [Government Accountability Office] protest window is short, and any delay in seeking judicial relief at the Court of Federal Claims can undermine both the merits and the equities of the protester’s position,” said Richard. “Contractors who anticipate an override should have a litigation strategy prepared in advance, with counsel ready to move swiftly at the Court of Federal Claims if the agency proceeds with performance.”
The full article, “Fed. Circ. Clarifies Standard for Contesting CICA Overrides,” was published by Law360 on June 16 and is available online.