22nd Century Networks, Inc. v. United States
CourtUnited States Court of Federal Claims
Date FiledOctober 3, 2026
Docket26-718
JudgeMarian Blank Horn
StatusPublished
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Full Opinion
In the United States Court of Federal Claims
No. 26-718C
Filed: September 14, 2026
Redacted Version Issued for Publication: October 3, 20261
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22ND CENTURY NETWORKS, INC., *
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Protestor, *
v. *
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UNITED STATES, *
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Defendant,
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*
v. *
BY LIGHT PROFESSIONAL IT *
SERVICES, LLC,
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Defendant-Intervenor.
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W. Brad English, Maynard Nexsen PC, Huntsville, AL, for protestor. With him were
Hunter M. Drake, Emily J. Chancey, Kristopher B. Womack, and Taylor R. Holt,
Maynard Nexsen PC, Huntsville, AL.
Ioana C. Meyer, Trial Attorney, Commercial Litigation Branch, Civil Division,
Department of Justice, Washington, DC, for defendant. With her were Douglas K.
Mickle, Acting Deputy Director, Commercial Litigation Branch, Patricia M. McCarthy,
Director, Commercial Litigation Branch, and Brett A. Shumate, Assistant Attorney
General, Civil Division. Of counsel Susan Chagrin, Associate General Counsel, Defense
Information Systems Agency, Washington, DC.
Damien Specht, Morrison Foerster LLP, Washington, DC, for intervenor. With him
were Brian E. Doll, Jr., James Tucker, and Jillian I. Stern, Morrison Foerster LLP,
Washington, DC, of counsel.
1 This Opinion was issued under seal on September 13, 2026. The parties were asked to
propose redactions prior to public release of the Opinion. This Opinion is issued with the
some of the redactions that the parties proposed in response to the court’s request. Words
which are redacted are reflected with the notation: “[redacted].”
OPINION
HORN, J.
Protestor, 22nd Century Networks, Inc. (22nd Century), filed the current post-
award bid protest, Case No. 26-718C, in the United States Court of Federal Claims
challenging the decision of the Defense Information Systems Agency (DISA) to award a
contract to intervenor, By Light Professional IT Services LLC (By Light) in response to
Request for Proposals (RFP) No. HC108426R0005 (the Solicitation). Protestor alleges
that the DISA required the offerors to use Menlo Security, Inc.’s (Menlo) service
agreements and licenses, and because Menlo quoted By Light a lower price than
protestor, and By Light was awarded the contract, “DISA did not ensure that this
procurement was conducted fairly.”
FINDINGS OF FACT
In DISA’s Combined Acquisition Strategy/Acquisition Plan, the agency explained:
DISA requires a secure browser isolation solution to be delivered as a
managed service for the purpose of providing all Department of War (DoW)
users with safe and reliable access to web resources. The solution and
managed service provider (MSP) is critical to mitigating cyber threats,
enhancing information system security, and eliminating vulnerabilities in
critical infrastructure that adversaries could exploit. The DoW allocates
significant resources, tens of millions of dollars annually, to defend its
networks against internet-based threats. Notably, approximately 36% of
these threats originate from browser-based attacks. To address this
challenge, the DoW has adopted the Cloud-Based Internet Isolation (CBII)
service, leveraging Menlo Security Inc.’s Cloud Browser (MSCB) isolation
capability. Delivered as a managed service by a primary integrator, this
solution currently protects approximately 3.05 million DoW users. Based on
a successful Other Transaction Authority (OTA) agreement, the DoW has
selected MSCB as the solution for CBII. A brand-name Justification for other
than Full and Open Competition (OTFAOC) has been executed to
substantiate this decision.
The purpose of this FAR-based follow-on contract action is to procure Menlo
Security Inc.’s MSCB, the proprietary, commercial off-the-shelf (COTS)
brand-name product, as a managed service, providing the DoW’s remote
browsing isolation (RBI) solution for CBII.
The Combined Acquisition Strategy/Acquisition Plan continued:
Since 2020, DoW has leveraged the MSCB solution via the production OTA
agreement to protect DoW users from evolving cyber threats. This five-year
deployment has continually adapted to mitigate increasingly sophisticated
malicious tactics, techniques, and procedures. The MSCB provides
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significant value by transforming DoW’s web browsing experience, resulting
in a safer, more efficient, and more resilient operation. By supporting major
browsers (Google Chrome, Microsoft Edge, Mozilla Firefox, and Apple
Safari), the MSCB offers increased flexibility, allowing organizations to
leverage existing infrastructure, reduce training costs, and improve user
productivity. The MSCB significantly enhances DoW’s security posture by
masking user browsing activity, hindering intelligence gathering by threat
actors. It provides robust, multi-layered protection against web-based
threats by isolating online plug-ins and screening downloads, preventing
malicious code from compromising DoW computers and networks. It also
blocks access to known malicious websites and restricts access to
inappropriate content, improving compliance and minimizing distractions.
The Combined Acquisition Strategy/Acquisition Plan explained:
Menlo Security, Inc. products have been crucial to DISA's mission,
protecting millions of DoW users across major organizations, including the
Office of the Secretary of War and the Defense Logistics Agency. As the
DoW’s remote browsing isolation solution for five years, the MSCB has
prevented billions of cyber threats, offloaded hundreds of petabytes of data,
and improved responsiveness. From January to March 2025, the system
detected and mitigated an average 25 million threats monthly and offloaded
over 4 petabytes of data each month, reinforcing its critical role in defending
the DoW in cyberspace.
The CBII solution requires continuous operation within a secure,
FedRAMP+ Level 2 compliant, unclassified Cloud Service Offering to
protect DoW networks from online threats. This environment, supporting up
to 3.4 million DoW users worldwide with 24/7 secure internet browsing,
threat isolation, and bandwidth freeing, is already powered by Menlo
Security, Inc. This follow-on effort focuses on maintaining and enhancing
this system by continuing to utilize Menlo Security, Inc.’s cloud environment
and adding smart, automated defenses (using artificial intelligence and
machine learning (AI/ML)) to proactively block cyberattacks, ensuring a
strong and reliable defense against web-based threats.
For cost, the Combined Acquisition Strategy/Acquisition Plan included the following table:
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The Combined Acquisition Strategy/Acquisition Plan explained the “estimated cost was
determined through: Market research: Conducted in collaboration with the original
equipment manufacturer (OEM), Menlo Security, Inc., to gather information on the current
market prices and trends,” and “Review of current agreements: Analysis of existing
contracts, including the existing OTA agreement HC10842090006 awarded by DISA, to
determine the pricing structure and any discounts or terms that may be applicable.”
(capitalization and emphasis in original).
The Performance Work Statement for the Solicitation currently under review
reflected that:
The scope of this contract requires a managed service for the Government
that provides a cloud environment utilizing MSCB [Menlo Security Inc.’s
Cloud Browser]. This solution includes all hardware, software, and
infrastructure components required to deliver to the Government a secured,
flexible, cloud environment that is readily available, scalable, globally
accessible, and provides enhanced cyber security protections in an
isolated, secured cloud environment. Capabilities within the MSCB-
engineered CBII platform will include but are not limited to destination-
based whitelisting and blacklisting, web content filtering, site categorization
and risk assessment, malware scanning and sandboxing, data loss
prevention and web isolation within a secure container. The managed
service, an essential requirement of the contract, will provide managed
services to include program support, a tiered service desk infrastructure,
engineering, migration support, user and administrator training, and
accreditation & authorization (A&A) support. The Government may require
surge support during the base or any option period, and surge modifications
will be within the scope of the contract and provide increased support for
the defined task areas of this PWS. Surge support over the life of the
contract will not exceed 5% of the contractor’s total proposed cost/price for
the base and all option periods, excluding any six-month extension of
services pursuant to FAR 52.217-8.
(alteration added). The Performance Work Statement for the Solicitation identified seven
“Performance Requirements” for the contractor to meet:
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Task 1 – Program Support
Task 2 – Unclassified/NIPRNET [Non-classified Internet Protocol (IP)
Router Network Net] Production Environment (engineered by Menlo
Security, Inc.)
Task 3 – Operational Service Support
Task 4 – Accreditation & Authorization (A&A)
Task 5 – Migration, Readiness Assessments, and Sustainment Support
Task 6 – Training
Task 7 – Engineering Support Services
(alteration added). The Solicitation “Basis for Contract Award” explained:
Award will be made to the responsible offeror whose proposal is determined
to represent the overall best value to the Government using a lowest price
technically acceptable (LPTA) evaluation process. The Government
anticipates awarding to the lowest price technically acceptable respondent
from initial contractor responses, without engaging in exchanges with
respondents. Respondents are strongly encouraged to submit their best
technical solution and price/cost in response to this solicitation. The
technical proposal should include all information the offeror wants the
Government to consider and evaluate regarding its ability to perform all
work described in the evaluation subfactors. To be eligible for award, the
offeror’s proposal must sufficiently address all aspects of the evaluation
factors and subfactors. Failure to comply with the terms and conditions of
the solicitation may result in the offeror being ineligible for award.
The Solicitation informed offerors that
[t]he Government intends to evaluate proposals and award a contract
without exchanges. However, the Government reserves the right to conduct
exchanges or seek clarifications if the KO [Contracting Officer] determines
they are necessary. In the event issues pertaining to the solicitation cannot
be resolved to the KO's satisfaction, the Government reserves the right to
cancel the solicitation. In such event, offerors will be notified in writing.
(alterations added). The Solicitation had two evaluation factors: Factor 1,
“Technical/Management Approach,” and Factor 2, “Price.” Factor 1 had four subfactors:
“Subfactor 1: Core Service Capability & Performance,” Subfactor 2: Tier II: Contractor
Provided Infrastructure Support,” “Subfactor 3: Cybersecurity, A&A, Threat Mitigation,
Data Protection, and ICAM [Identity, Credential, and Access Management]
Interoperability,” “Subfactor 4: Engineering and Mobility Support.” (alteration added).
According to the Solicitation: “The Technical/Management subfactors will be evaluated
and rated either Acceptable or Unacceptable. In order for a proposal to be rated overall
Technically Acceptable, each of the subfactors must be rated Acceptable.” The description
for “Acceptable” was: “Proposal clearly meets the minimum requirements of the
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solicitation,” and the description for “Unacceptable” was: “Proposal does not clearly meet
the minimum requirements of the solicitation.” For “Factor 2: Price,” the Solicitation stated:
The Offeror’s firm-fixed price proposal will be evaluated for award purposes
based upon the total evaluated price which consists of the offeror’s
proposed prices for the base period, all option periods, including option
pricing for an additional 6-month period that may be authorized IAW [in
accordance with] FAR 52.217-8, and surge pricing. Evaluation of the options
shall not obligate the Government to exercise such options. The offeror’s
price proposal will be evaluated, using one or more of the techniques
defined in FAR 15.404, in order to determine if it is reasonable and
complete. Normally, price reasonableness is established through cost and
price analysis techniques as described in FAR 15.404. For a price to be
complete, all solicitation requirements must be priced, figures correctly
calculated and prices presented in in a clear and useful format. The
Government reserves the right, but is not obligated, to conduct a realism
analysis.
(alteration added). The initial Independent Government Cost Estimate (IGCE) for the
procurement was $322,415,559.02.
In response to the Solicitation, four offerors submitted proposals on March 23,
2026: Protestor, 22nd Century, intervenor By Light, [redacted], and [redacted]. By Light
proposed a price of $[redacted], [redacted] proposed a price of $[redacted], 22nd Century
proposed a price of $[redacted], and [redacted] proposed a price of $[redacted]. After
DISA issued Amendment 0004 to the Solicitation, all four offerors subsequently submitted
revised price proposals on March 30, 2026: By Light’s revised price was $[redacted], 22nd
Century’s revised price was $[redacted], [redacted] revised price was $[redacted], and
[redacted] revised price was $[redacted].
DISA’s April 10, 2026 Memorandum for Record, titled: Independent Government
Cost Estimate (IGCE) Increase After Release of Request for Proposal (RFP),” explained
that
The Defense Information Systems Agency (DISA) Program Executive
Office Cyber (ID)/Internet Protection Branch (ID51) submitted their
complete requirements package on January 12, 2026, including an IGCE of
$322,415,559. The CBII RFP was posted to SAM.gov on February 23,
2026.
Initial proposals received on March 23, 2026, were priced significantly
higher than the IGCE. The Government determined this was due to the
usage-based pricing model in the RFP. In response, the Government issued
RFP Amendment 0004 to replace the usage-based model with enterprise-
based pricing. Four revised proposals were received on March 30, 2026,
with pricing more comparable to the IGCE.
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After receipt of the revised proposals, DISA ID51 discovered that its original
IGCE was based on historical pricing from the current contract, Other
Transaction Agreement (OTA) HC10842090006, but it had failed to account
for a recent cost increase in the current OTA extension and price increase
related to managed services versus an annual subscription. To correct this,
a revised IGCE was submitted in the amount of $340,040,271. Based upon
the information documented above, this MFR supports the IGCE increase,
and no further documentation is required.
(capitalization in original). The same day, April 10, 2026, DISA issued Amendment 0006
to the Solicitation “to issue evaluation notices (ENs)” and to “request Final Proposal
Revisions (FPRs).” In the evaluation notices to all four offerors, DISA asked that each
offeror “review their proposal submission, provide justification and documentation to
support proposed pricing, and/or submit a revised proposal reducing the proposed price.”
On April 20, 2026, all four offerors submitted final revised proposals, including revised
price proposals. In defendant’s submission to the court, defendant provided the following
chart reflecting the offerors’ final evaluated prices:
Total Evaluated Price for Base Year Price for Base Year
Offeror Contract Price CBII Managed CBII HEAT Shield
Service Managed Service
By Light $344,654,988.32 $[redacted] $[redacted]
22nd Century $[redacted] $[redacted] $[redacted]
[redacted] $[redacted] $[redacted] $[redacted]
[redacted] $[redacted] $[redacted] $[redacted]
The revised IGCE for the procurement was $340,040,271.
In the April 27, 2026 Source Selection Decision Document, the Source Selection
Authority explained: “After initial evaluation of the offerors, the Government conducted
discussions with all offerors and requested Final Proposal Revisions (FPRs) from the four
offerors,” and the Source Selection Evaluation Team “determined all offerors were
technically acceptable with conclusion of the oral proposal presentations.” Regarding
Price, the Source Selection Authority explained:
All offerors’ prices were evaluated and determined to be complete and
reasonable. The Contracting Officer determined that price competition
existed and I concur. Price realism analysis was not performed. The price
evaluation was based on the TEPs [Total Evaluated Prices] compared to
the IGCE and proposed average price for the projected 5-year contract life
(one-year base period and four, 1-year options). The TEP consisted of the
offeror’s proposed prices for the base period, all option periods, and option
pricing for an additional 6-month extension period that may be authorized
IAW FAR 52.217-8.
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(alteration added). The April 27, 2026 Source Selection Decision Document included the
following price chart:
Offeror Proposed April 20, 2026 Delta from IGCE Delta from Average TEP
[Total Evaluated Price]
By Light $344,654,988.32 [redacted]% [redacted]%
TSCNI[2] $[redacted] [redacted]% [redacted]%
[redacted] $[redacted] [redacted]% [redacted]%
[redacted] $[redacted] [redacted]% [redacted]%
IGCE $[redacted]
Proposed Price Average $[redacted]
(footnote and alteration added). The April 27, 2026 Source Selection Decision Document
explained:
By Light’s TEP is $344,654,988.32, which is the lowest of the four offerors.
By Light is [redacted]% lower than the next lowest offeror, and [redacted]%
lower than the average total proposed prices of all offerors, which is
$[redacted]. Further, the TEP compares favorably to the IGCE and is
[redacted]% higher than the IGCE amount of $[redacted] (including six-
month extension). Although higher, By Light’s TEP is still within a
reasonable range of the IGCE. A reasonable range is considered to be
within 1 standard deviation. In a normal distribution, 1 standard deviation
will include the data that is within [redacted]% of the average. By Light is
considered reasonable in comparison to the IGCE.
Therefore, the Source Selection Authority concluded: “Although no competitive range was
determined to exclude any offerors, the evaluation of offerors, after receipt of FPRs,
clearly shows By Light is the LPTA [Lowest Price Technically Acceptable] offeror.
Accordingly, I direct the Contracting Officer to award the CBII contract to By Light.”
(alteration added).
After DISA’s decision to award the contract to By Light, protestor filed its bid protest
complaint on May 14, 2026. Subsequently, on June 15, 2026, protestor filed an amended
complaint.3 Protestor’s amended complaint contains a single count: “Count One - DISA
2 TSCNI refers to protestor “22nd Century Technologies Inc.”
3 In protestor’s original complaint, protestor indicated no actual knowledge that Menlo had
offered By Light a different price than protestor and alleged:
Because By Light’s price was substantially lower than the baseline price,
DISA knew or should have known that it either did not propose to provide
all required licenses, did not follow the pricing instructions by removing or
manipulating the plug amounts for surge and pricing, or both. DISA should
have found By Light Unacceptable because its proposal did not price all the
Solicitation’s requirements. Alternatively, DISA should have removed By
Light from the competition because it failed to follow the Solicitation’s pricing
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did not ensure that this procurement was conducted fairly.” Protestor made the following
allegations and arguments:
DISA essentially abdicated its source selection decision in this LPTA
procurement to its mandatory subcontractor, Menlo. And, in doing so,
frustrated the Source Selection Plan by allowing Menlo’s charges to each
bidder—not the contractor-provided services—to become the competitive
difference. Among technically acceptable bidders, DISA knew price would
be the deciding factor and that Menlo’s charges would make up the vast
majority of offerors’ pricing. Indeed, DISA estimated Menlo’s charges were
nearly [redacted]% of the cost in the base year of both of its IGCEs. DISA
was in contact with Menlo during the acquisition process, working
cooperatively to develop the IGCE. But DISA did nothing to ensure Menlo—
the de facto source selection authority – treated offerors fairly.
In fact, Menlo did not treat the offerors fairly or impartially. Menlo charged
the other bidders $[redacted] for 5.5 years of CBII Managed Services and
Heat Shield. DISA knew or should have known that by looking at [redacted]
proposal. Similarly, it DISA knew or should have known by looking at By
Light’s proposal and doing the math mentioned above, that Menlo charged
By Light no more than $[redacted] for the same thing, a difference of
$[redacted]. Even worse, Menlo lied to the other offerors, or at least 22nd
Century, saying it could not negotiate its charges because it wanted to
maintain a competitive process that was focused on technical acceptability.
(footnote and internal references omitted). In protestor’s amended complaint, protestor
proports to calculate Menlo’s charges to By Light as follows:
By Light’s total price for CBII Managed Services was $[redacted] and its
total price for Heat Shield was $[redacted], a grand total of
$329,665,229.64. However, By Light’s proposal also included its [redacted],
which were included in those CLIN prices. Adding those [redacted] shows
that By Light’s [redacted] were $[redacted]. Adding [redacted]% of By Light’s
[redacted], or $[redacted] and subtracting that total from By Light’s total
[redacted] shows that Menlo charged By Light no more than $[redacted],
without accounting for [redacted].
(footnote and internal references omitted). Protestor also alleges:
As expected, Menlo’s charges to offerors were the deciding factor. All
bidders were technically acceptable, so the award decision came down to
the lowest price. By Light had the lowest price because Menlo offered it
substantially lower charges than it offered the other bidders. In essence,
requirements or otherwise manipulated them. In either event, as the
Acceptable bidder with the second lowest price, 22nd Century would have
received award.
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there was no competition. Because Menlo controlled the outcome and gave
By Light a sweetheart deal on the licenses that made up the majority of the
proposed price, every other technically acceptable bidder was fighting for
second place from the outset. Not only did this violate the Source Selection
Plan’s intention to allow the contractor services to be the competition’s
focus, but it eliminated all competition to start with.
In protestor’s motion for judgment on the Administrative Record, protestor
reiterates that “[b]y making Menlo a ‘required subcontractor’ and failing to establish
guardrails or provide oversight to ensure it treated all bidders fairly, DISA essentially
ceded source selection authority to Menlo and violated principals of fundamental
fairness.” (alteration added). Protestor also argues that “[b]y unreasonably allowing Menlo
to deceive bidders and manipulate this competition, DISA prejudice 22nd Century.”
(alteration added).
In response to protestor’s motion for judgment on the Administrative Record,
defendant and intervenor both filed motions to dismiss protestor’s amended complaint,
and, in the alterative, cross-motions for judgment on the Administrative Record.
Defendant argues in its motion to dismiss that “by contesting the pricing, 22nd Century is
merely mounting a challenge to the terms of the solicitation—a challenge that 22nd
Century has waived by failing to raise it before bidding closed.” In intervenor’s motion to
dismiss, intervenor argues that a “protest is not a vehicle for a disappointed offeror to
complain that a vendor quoted a lower price to another offeror than to it. Yet that is exactly
what 22nd Century’s protest does: it complains that its proposed supplier, Menlo Security,
Inc. (‘Menlo’), quoted By Light a lower net price than it quoted 22nd Century.”
In defendant’s cross-motion for judgment on the Administrative Record, defendant
argues that “the record does not show that DISA treated offerors unfairly or ceded control
of the procurement to Menlo. DISA established the same solicitation requirements for all
offerors, allowed offerors to negotiate with Menlo, evaluated all proposals under the same
criteria, and made the final award decision itself.” In intervenor’s cross-motion for
judgment on the Administrative Record, intervenor argues that “the record demonstrates
the Agency evaluated proposals and awarded the contract in a reasonable manner, in
strict accordance with the LPTA terms of the Solicitation. 22nd Century fails to identify
any Agency error in the evaluation and award process.”
In its response to the motions to dismiss, protestor argues that its post-award bid
protest “is not a solicitation protest but a timely challenge to DISA’s unreasonable
conduct,” and “nothing in the Solicitation indicated that DISA planned to cede source
selection authority to its mandatory subcontractor by allowing it to pick the winner simply
by offering different prices for required products.” In response to the cross-motions for
judgment on the Administrative Record, protestor contends:
While it may be true that DISA made the award, Menlo certainly picked the
winner. DISA made Menlo a mandatory subcontractor, knowing its costs
would make up nearly [redacted]% of the proposed price. Yet DISA did
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nothing to ensure Menlo treated bidders fairly. That meant Menlo had the
unimpeded ability to pick the winner in this LPTA procurement by giving it a
better deal than the other bidders. Nobody disputes that is what happened
here. DISA’s award decision was a predetermined formality once Menlo
gave By Light a substantially better deal than everyone else.
Defendant’s reply brief argues that “[i]n its response, 22nd Century still fails to
demonstrate that the Defense Information Systems Agency (DISA) conducted an
irrational procurement,” which intervenor echoes by contending “Plaintiff fails to establish
any error in the evaluation or award decision.” (alteration added).
After the parties’ motions were fully briefed, the court held oral argument. At oral
argument defendant counsel argued that “there’s nothing in the record that would show
that the contracting officer knew” that Menlo did not offer the same prices to each offeror,
and, after conferring with the contracting officer, represented that the agency “did not
know that there were different prices charged by Menlo.”
Protestor also filed a motion to supplement the Administrative Record, which
defendant and intervenor oppose, and which is discussed below.
DISCUSSION
Initially, defendant and intervenor both argue that protestor has waived its ability
to bring a bid protest challenge in its court. Defendant argues that “[t]he Court should
dismiss this complaint for failure to state a claim because 22nd Century waived its
objection to the terms of the Solicitation,” (alteration added), and intervenor argues the
court should dismiss plaintiff’s protest “as an untimely Solicitation challenge that Plaintiff
waived under Blue & Gold Fleet, L.P. v. United States, 492 F.3d 1308 (Fed. Cir. 2007).”
In Blue & Gold, the United States Court of Appeals for the Federal Circuit addressed
whether if an offeror had the opportunity to object to a patent error in the terms of a
solicitation, but failed to do so, did the offeror waive the right to challenge that same error
in a subsequent bid protest. See id. at 1313. The United States Court of Appeals for the
Federal Circuit noted that the protestor in Blue & Gold had failed to challenge the terms
of the solicitation until after the agency had made a contract award. See id. at 1311. When
considering if the protestor had waited too long to challenge the solicitation, the Federal
Circuit noted that decisions of the Court of Federal Claims had concluded “that where
there is a ‘deficiency or problem in a solicitation . . . the proper procedure for the offeror
to follow is not to wait to see if it is the successful offeror before deciding whether to
challenge the procurement, but rather to raise the objection in a timely fashion.’” Id. at
1314 (quoting N.C. Div. of Servs. for the Blind v. United States, 53 Fed. Cl. 147, 165
(2002), aff’d, 60 F. App’x 826 (Fed. Cir. 2003)) (omission in original); see also Trillion ERP
Venture Tech LLC v. United States, 161 Fed. Cl. 531, 542 (2022). In Blue & Gold, the
United States Court of Appeals for the Federal Circuit held:
[A] party who has the opportunity to object to the terms of a government
solicitation containing a patent error and fails to do so prior to the close of
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the bidding process waives its ability to raise the same objection
subsequently in a bid protest action in the Court of Federal Claims.
Blue & Gold Fleet, L.P. v. United States, 492 F.3d at 1313 (alteration in original); see also
Oak Grove Techs., LLC v. United States, 116 F.4th 1364, 1378 (Fed. Cir. 2024) (“The
applicability of the ‘Blue & Gold rule’ turns on the existence of a patent error.”); M.R.
Pittman Grp. v. United States, 68 F.4th 1275, 1283 (Fed. Cir. 2023) (“Blue & Gold requires
that a party with the opportunity to object to the terms of a government solicitation
containing a patent error must do so prior to the close of the bidding process or else it
waives its ability to raise that objection in the Court of Federal Claims.” (citing Blue & Gold
Fleet, L.P. v. United States, 492 F.3d at 1313)); Mitchco Int’l, Inc. v. United States, 26 F.4th
1373, 1380 (Fed. Cir. 2022) (citing Harmonia Holdings Grp. v. United States, 20 F.4th
759, 766 (Fed. Cir. 2021) (citing Blue & Gold, Fleet, L.P. v. United States, 492 F.3d at
1313)); Per Aarsleff A/S v. United States, 829 F.3d 1303, 1312 (Fed. Cir. 2016); Toota
Grp., LLC v. United States, No. 25-1956, 2026 WL 1971080, at *11 (Fed. Cl. June 24,
2026); Revelations Counseling & Consulting, LLC v. United States, 180 Fed. Cl. 721, 740
(2026); Telesto Grp., LLC v. United States, 176 Fed. Cl. 711, 740 (2025); Trace Sys. Inc.
v. United States, 165 Fed. Cl. 44, 62 (2023); Eagle Techs., Inc. v. United States, 163 Fed.
Cl. 692, 706 (2022), appeal dismissed, No. 2023-1473, 2023 WL 2820095 (Fed. Cir. Apr.
7, 2023); Land Shark Shredding, LLC v. United States, 142 Fed. Cl. 301, 311 (2019);
MSC Indus. Direct Co. v. United States, 140 Fed. Cl. at 641; Phoenix Mgmt., Inc. v. United
States, 125 Fed. Cl. 170, 181 (2016); CliniComp Int’l, Inc. v. United States, 117 Fed. Cl.
722, 737–38 (2014)) (“The rule in Blue and Gold Fleet thus bars a protester from raising
objections to patent errors or ambiguities in the terms of a solicitation after the closing of
bidding if such errors or ambiguities were apparent on the face of the solicitation,” and
“[w]hen a solicitation contains a patent ambiguity, the offeror has ‘“a duty to seek
clarification from the government, and its failure to do so precludes acceptance of its
interpretation”’ in a subsequent court action.” (alteration added) (quoting Blue & Gold
Fleet L.P. v. United States, 492 F.3d at 1313 (quoting Stratos Mobile Networks USA, LLC
v. United States, 213 F.3d 1375, 1381 (Fed. Cir. 2000)))). The Federal Circuit in Blue &
Gold reasoned that such a waiver rule, “requir[ing] that a party object to solicitation terms
during the bidding process,” furthered the mandate in 28 U.S.C. § 1491(b) that, “‘the
courts shall give due regard to the interests of national defense and national security and
the need for expeditious resolution of the action.’” Blue & Gold Fleet, L.P. v. United States,
492 F.3d at 1313 (quoting 28 U.S.C. § 1491(b)(3)) (emphasis in original; alteration added).
The Federal Circuit also explained in Blue & Gold:
“It would be inefficient and costly to authorize this remedy after offerors and
the agency had expended considerable time and effort submitting or
evaluating proposals in response to a defective solicitation. Vendors cannot
sit on their rights to challenge what they believe is an unfair solicitation, roll
the dice and see if they receive award [sic] and then, if unsuccessful, claim
the solicitation was infirm.”
Id. at 1314 (alteration in original) (quoting Argencord Mach. & Equip., Inc. v. United States,
68 Fed. Cl. 167, 175 n.14 (2005)).
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Furthermore, as described above, a “solicitation is ambiguous only if its language
is susceptible to more than one reasonable interpretation,” and “[i]f the provisions of the
solicitation are clear and unambiguous, they must be given their plain and ordinary
meaning; we may not resort to extrinsic evidence to interpret them.” Banknote Corp. of
Am. v. United States, 365 F.3d 1345, 1353 (Fed. Cir. 2004) (alteration added); see also
Per Aarsleff A/S v. United States, 829 F.3d at 1309; AccelGov, LLC v. United States, 170
Fed. Cl. 508, 516 (2024);(citing Banknote Corp. of Am. v. United States, 365 F.3d at 1353).
The court in Blue & Gold Fleet found that “‘[t]he doctrine of patent ambiguity is an
exception to the general rule of contra proferentem, which courts use to construe
ambiguities against the drafter.’” Blue & Gold Fleet, L.P. v. United States, 492 F.3d at 1313
(quoting E.L. Hamm & Assocs., Inc. v. England, 379 F.3d 1334, 1342 (Fed. Cir. 2004));
see also HPI/GSA 3C, LLC v. United States, 364 F.3d 1327, 1334 (Fed. Cir. 2004) (“The
general rule is contra proferentem, which requires ambiguities in a document to be
resolved against the drafter.”); Triax Pac., Inc. v. West, 130 F.3d 1469, 1475 (Fed. Cir.
1997) (“More subtle ambiguities are deemed latent and are accorded an interpretation
favorable to the contractor under the doctrine of contra proferentem.”); Ekagra Partners,
LLC v. United States, 163 Fed. Cl. 189, 208 (2022); T.W. Laquay Marine, LLC v. United
States, 127 Fed. Cl. 748, 762 (2016) (“A latent ambiguity should be construed against the
Government in accordance with the recognized contract interpretation principle of contra
proferentum [sic].” (alteration added)).
According to the United States Supreme Court, “as between two reasonable and
practical constructions of an ambiguous contractual provision . . . . the provision should
be construed less favorably to that party which selected the contractual language.” United
States v. Seckinger, 397 U.S. 203, 216, reh’g denied, 397 U.S. 1031 (1970) (omission
added). This doctrine of contra proferentem “‘pushes the drafters toward improving
contractual forms and it saves contractors from hidden traps not of their own making.’”
Fry Commc’ns, Inc. v. United States, 22 Cl. Ct. 497, 503 (1991) (quoting Sturm v. United
States, 190 Ct. Cl. 691, 697, 421 F.2d 723, 727 (1970)). Similarly, according to the United
States Court of Appeals for the Federal Circuit: “When a dispute arises as to the
interpretation of a contract and the contractor’s interpretation is reasonable, we apply the
rule of contra proferentem, which requires that ambiguous or unclear terms that are
subject to more than one reasonable interpretation be construed against the party who
drafted the document.” Turner Constr. Co. v. United States, 367 F.3d 1319, 1321 (Fed.
Cir. 2004) (citing United States v. Turner Constr. Co., 819 F.2d 283, 286 (Fed. Cir. 1987));
see also States Roofing Corp. v. Winter, 587 F.3d 1364, 1372 (Fed. Cir. 2009); Gardiner,
Kamya & Assocs. v. Jackson, 467 F.3d 1348, 1352 (Fed. Cir. 2006); HPI/GSA-3C, LLC v.
Perry, 364 F.3d 1327, 1334 (Fed. Cir. 2004).
The Federal Circuit in Blue & Gold Fleet further held that “[u]nder the doctrine,
where a government solicitation contains a patent ambiguity, the government contractor
has ‘a duty to seek clarification from the government, and its failure to do so precludes
acceptance of its interpretation’ in a subsequent action against the government.” Blue &
Gold Fleet, L.P. v. United States, 492 F.3d at 1313 (alteration added) (quoting Stratos
Mobile Networks USA, LLC v. United States, 213 F.3d at 1381 (quoting Statistica, Inc. v.
Christopher, 102 F.3d 1577, 1582 (Fed. Cir. 1996))); see also Premier Off. Complex of
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Parma, LLC v. United States, 134 Fed. Cl. 83, 88 (2017) (“A patent ambiguity is one that
is ‘obvious, gross, [or] glaring.’” (alteration in original) (quoting H & M Moving, Inc. v.
United