Biotechinnova, LLC v. United States
CourtUnited States Court of Federal Claims
Date FiledAugust 26, 2026
Docket24-1194
JudgeRyan T. Holte
StatusPublished
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Full Opinion
In the United States Court of Federal Claims
No. 24-1194
(Filed: 26 August 2026)
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BIOTECHINNOVA, LLC, *
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Plaintiff, *
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v. *
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THE UNITED STATES, *
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Defendant. *
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Rebecca Rhew, Rhew Legal Group, P.A., of West Palm Beach, FL, for plaintiff.
Catherine M. Yang, Trial Attorney, with whom were Eric P. Bruskin, Assistant Director,
Patricia M. McCarthy, Director, Commercial Litigation Branch, and Brett A. Shumate, Assistant
Attorney General, Civil Division, U.S. Department of Justice, all of Washington, DC, for the
government.
OPINION AND ORDER
HOLTE, Judge.
Plaintiff BiotechInnova, LLC, filed this lawsuit against the United States for wrongful
payment to a third party following an informal solicitation for one million COVID masks that
resulted in a subsequent rush for financing, an assignment, rejected masks, and finally
replacement products. Plaintiff claims the prime contractor, Wright Construction Group,
assigned the contract proceeds to plaintiff in return for plaintiff’s masks, but the government
nonetheless paid Wright after plaintiff’s masks were rejected and replaced. Plaintiff also levies
claims against Wright for breach of contract and breach of assignment of contract for receiving
payment notwithstanding the assignment. After six months of extensions—and opposition to
plaintiff’s motion to amend the complaint for untimeliness—the government filed a combined
Motion to Dismiss and Motion for Summary Judgment. For the reasons below, the Court
grants-in-part and denies-in-part the government’s combined motion.
I. Background
A. Factual Background
In the midst of the COVID-19 pandemic, the Federal Bureau of Prisons (“BOP”) awarded
Wright Construction Group (“Wright”) a contract for 1,000,000 N95 Masks to be distributed
among the BOP Regional Offices for $3,990,000. See Am. Compl. ¶¶ 8, 10, ECF No. 26. The
government emphasized to Wright the need for such masks to be NIOSH-approved N95 masks.
See Gov’t’s Mot. to Dismiss, App’x (“Gov’t’s App’x”) at 305–06 (Solicitation Email), ECF No.
29-1. Wright originally offered 3M-brand masks to the government, but due to the heightened
demand for masks during the COVID-19 pandemic, Wright encountered delays and could not
fulfill its obligation to the BOP. See Am. Compl. ¶¶ 9, 12. On 26 June 2020, Wright proposed
an “alternative mask[]” from plaintiff, BiotechInnova, LLC (“Biotech” or “plaintiff”). See id.
¶¶ 14–15. The BOP agreed to the alternative, but when the Biotech masks were delivered in late
July 2020, the BOP realized the alternative masks were not NIOSH approved. See Am. Compl.
¶ 16, 40–43; Gov’t’s App’x at 41 (5 Aug. 2020 email from Contracting Officer, LaShundra
Thomas, to the president of Wright, Bernard Wright). As a result, the government did not accept
the Biotech masks and terminated the contract for convenience, effective 5 August 2020. See
Am. Compl. ¶ 43; Gov’t’s App’x at 41 (5 Aug. 2020 Email from Contracting Officer to Mr.
Wright). After reviewing a sample of proposed alternative masks from Kimberly Clark, the BOP
agreed to accept those masks and executed a contract modification on November 10, 2020. See
Am. Compl. ¶¶ 45–51; Gov’t’s App’x at 48–57 (22 Oct. 2020 – 10 Nov. 2020 email
correspondence between Contracting Officer and Mr. Wright). Wright then collected the
unwanted Biotech masks and replaced them with the Kimberly Clark masks, as requested in the
contract modification, and was then paid in full by the BOP. See Am. Compl. ¶¶ 52; Gov’t’s
App’x at 48–57 (22 Oct. 2020 – 10 Nov. 2020 email correspondence between Contracting
Officer and Mr. Wright).
B. Procedural History
On 5 August 2024, plaintiff filed its first complaint, alleging “breach of contract, breach
of good faith, . . . violations of FAR regulations, and . . . civil conspiracy concerning the
purchase and sale of N95 masks during the COVID pandemic under Award Contract number
15BFA020PVNP10766.” Compl. ¶ 1, ECF No. 1. The government requested multiple
extensions to respond to the Complaint, totaling about six months—all of which the Court
granted. See 11 Oct. 2024 Order, ECF No. 6; 20 Dec. 2025 Order, ECF No. 8; 24 Jan. 2025
Non-PDF Order.
On 1 April 2025, the government filed its first Motion to Dismiss, requesting the Court
dismiss plaintiff’s complaint “for lack of subject matter jurisdiction or, in the alternative, failure
to state a claim.” See Gov’t’s Mot. to Dismiss at 1, ECF No. 12. On 28 April 2025, plaintiff
filed a Consent Motion for Extension of Time, which the Court granted on 29 April 2025. See
Pl.’s Consent Mot. for Extension of Time, ECF No. 13; 29 Apr. 2026 Non-PDF Order. On 27
May 2025, plaintiff filed a Motion for Leave to File First Amended Complaint and to Amend
Case Caption, to properly set forth its claims against the government and to add Wright as a
defendant. See Pl.’s First Mot. to Am. Pleadings, ECF No. 14. Plaintiff also filed its Response
to the government’s first Motion to Dismiss on 27 May 2025. See Pl.’s Opposition to Gov’t’s
Mot. to Dismiss, ECF No. 15. On 10 June 2025 the government filed its Reply. See Gov’t’s
Reply in Support of Gov’t’s Mot. to Dismiss, ECF No. 16. On 10 June 2025 the government
filed its Opposition to Plaintiff’s Motion to Amend. See Gov’t’s Resp. to Pl.’s First Mot. to Am.
Pleadings, ECF No. 17. On 17 June 2025 plaintiff moved for three additional days to file a reply
in support of its Motion to amend its complaint, which the Court granted on 17 June 2025. See
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Pl.’s Mot. for Extension of Time to File Reply, ECF No. 18; 17 June 2025 Non-PDF Order. On
20 July 2025 plaintiff filed its Reply in Support of its Motion for Leave to File First Amended
Complaint and to Amend Case Caption. See Pl.’s Reply in Support of First Mot. to Am.
Pleadings, ECF No. 19.
The Court held a status conference on 6 August 2025 to discuss the amendment process
for adding Wright as a defendant. See 2 July 2026 Status Conference Order, ECF No. 22. On 22
September 2025, the Court granted plaintiff’s Motion for Leave to File First Amended
Complaint and found as moot the government’s first Motion to Dismiss. See 22 Sep. 2025
Order, ECF No. 25; see also 8 Jan. 2026 Order (clarifying Wright would not be added to the case
caption because “no provision in the Rules . . . permits a motion requesting the Court to issue a
summons to a private entity”), ECF No. 38.
On 14 October 2025, the government filed a combined Motion to Dismiss and Motion for
Summary Judgment. See Gov’t’s Mot. to Dismiss pursuant to Rule 12(b)(1), Mot. for Summary
Judgment (“Gov’t’s Mot.”), ECF No. 29. Plaintiff filed a response on 12 November 2025, see
Pl.’s Resp., ECF No. 30, and the government filed its reply on 24 November 2025, see Gov’t’s
Reply, ECF No. 34. The Court heard oral argument on 3 March 2026 in Fort Lauderdale,
Florida. See 16 Jan. 2026 Scheduling Order, ECF No. 39.
II. Parties’ Arguments
A. The Government’s Argument the Court Lacks Subject Matter Jurisdiction
Over Counts III & IV Against Wright because Wright is a Private Entity
In its combined motion to dismiss and motion for summary judgment, the government
first argues the Court does not have jurisdiction over plaintiff’s breach of contract claims against
Wright. See Gov’t’s Mot. at 10. The government states this court “consistently dismisses claims
brought by a plaintiff against private parties.” Id. (citations omitted). Recognizing Wright is a
private business, and “[t]he award of a federal contract to Wright does not transform it into a
federal entity,” the government argues this Court lacks jurisdiction over Counts III and IV, both
of “which are identical to the claims Biotech is pursuing against Wright in Florida state court.”
Id. at 11 (citation omitted). In response, plaintiff argues the government “misstates” the Court’s
jurisdiction and “[t]he Court of Federal Claims has jurisdiction over disputes involving both the
Government and its contractors, including disputes concerning termination and performance of
contracts governed by the Contract Disputes Act.” Pl.’s Resp. at 28.
B. The Government’s Argument the Court Lacks Subject Matter Jurisdiction
Over Counts I & II Against the United States Because Plaintiff Cannot
Establish a Valid Assignment Under the Contract
The government next argues it “identified at least five independent ways in which
Biotech did not comply with the requirements in the Anti-Assignment Act and the FAR.”
Gov’t’s Reply at 4–5. The government then addresses the question of “whether Biotech has
‘clearly shown’ that BOP waived the requirements of the Act and assented to a noncomplying
assignment.” Id. at 6 (citation omitted). The government argues “there is no ‘one particular act’
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that ‘constitut[es] recognition’ of an alleged assignment, and notice and acknowledgment of an
assignment ‘is not enough to recognize the assignment.’” Id. (citations omitted) (government’s
emphasis). Plaintiff argues the Assignment of Claims Act “implicitly allows for government
waiver by not declaring such assignments ‘null and void’ but instead specifying conditions under
which assignments may be valid – including the exception . . . for assignments to financing
institutions, thus indicating that the USA retains discretion to recognize certain assignments.”
Pl.’s Resp. at 16 (citations omitted). Plaintiff argues the government’s receipt of notice of
assignment and its acknowledgment of the notice is sufficient for the Court to find the
government recognized the assignment. See id. at 17–24.
C. The Government’s Argument the Court Should Grant Summary Judgment
Because, Even if a Valid Assignment Existed, Plaintiff Did Not Perform
Under the Contract
The government argues, if the Court has jurisdiction over plaintiff’s claims, the Court
should grant summary judgment as an alternative to dismissing the suit because contract
performance was not triggered since Biotech’s masks were noncompliant and were ultimately
rejected by the BOP. See Gov’t’s Mot. at 11, 17. The government lists the following facts and
urges that none of them are in dispute: “the BOP contract required Wright to provide masks that
were ‘NIOSH approved;’” the BOP Contracting Officer, LaShundra Thomas, “repeatedly
reminded Wright of the contract’s requirement for NIOSH approved masks;” “when Wright
offered Biotech’s masks to BOP as an alternative to the 3M masks specified in the contract
award, Ms. Thomas responded: ‘I still need the masks to be NIOSH approved;’” and “when the
Biotech masks were delivered, BOP found upon inspection that they were not NIOSH approved,
did not accept them, terminated the contract effective August 5, 2020, and arranged for the return
of the Biotech masks.” Id. at 17 (citations omitted) (emphasis in original). According to the
government, “[t]hese undisputed facts leave Biotech to allege that even though its masks were
non-compliant under the Government contract and thus rejected by BOP, it is nevertheless
entitled to contract payment because Wright later provided NIOSH-approved masks that Wright
procured from a different subcontractor.” Id. at 19 (emphasis in original).
In response, plaintiff argues it did not need to perform to receive the payment under the
Assignment of Claims Act and the government, having recognized the assignment of contract
proceeds to plaintiff, should have paid plaintiff any amounts it paid to Wright under the Contract.
See Pl.’s Resp. at 24. Plaintiff argues its performance was not necessary to receive payment
under the Assignment of Claims Act because “[o]nce the prime contractor performs, the assignee
stands in the prime contractor’s shoes and is entitled to recover from the Government.” Id. at 24.
Plaintiff asserts “[i]t is the government’s duty . . . to ensure assignees and [] subcontractors are
properly paid,” and, once an assignment is made, the government “can no longer discharge its
payment obligation . . . by paying the contractor” and not the assignee. Id. at 25–26 (citation
omitted). Plaintiff therefore argues, because Wright ultimately performed and was paid under
the contract, plaintiff is entitled to all contract proceeds erroneously paid to Wright. See id. at
26.
III. Applicable Law
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A. Motion to Dismiss for Lack of Subject Matter Jurisdiction Under Rule
12(b)(1)
“Subject matter jurisdiction is a threshold issue that must be determined at the outset of a
case.” King v. United States, 81 Fed. Cl. 766, 768 (2008) (citing Steel Co. v. Citizens for a
Better Env’t, 523 U.S. 83, 94–95 (1998)). “If a Rule 12(b)(1) motion simply challenges the
court’s subject matter jurisdiction based on the sufficiency of the pleading’s allegations—that is,
the movant presents a ‘facial’ attack on the pleading—then those allegations are taken as true
and construed in a light most favorable to the complainant.” Cedars-Sinai Med. Ctr. v. Watkins,
11 F.3d 1573, 1583 (Fed. Cir. 1993) (citations omitted). However, “[i]f the Rule 12(b)(1)
motion denies or controverts the pleader’s allegations of jurisdiction, . . . the movant is deemed
to be challenging the factual basis for the court’s subject matter jurisdiction. In such a case, the
allegations in the complaint are not controlling, and only uncontroverted factual allegations are
accepted as true for purposes of the motion. All other facts underlying the controverted
jurisdictional allegations are in dispute and are subject to fact-finding by the district court.” Id.
at 1583–84. In order to “establish[] the predicate jurisdictional facts, a court is not restricted to
the face of the pleadings, but [instead] may review evidence extrinsic to the pleadings, including
affidavits and deposition testimony.” Id. at 1584 (citations omitted). Once a movant challenges
the factual basis for the court’s subject-matter jurisdiction, “the party asserting jurisdiction”
“bears the burden of establishing subject matter jurisdiction by a preponderance of the evidence.”
Reynolds v. Army & Air Force Exch. Serv., 846 F.2d 746, 748 (Fed. Cir. 1988) (citations
omitted).
B. Motion for Summary Judgment Under Rule 56
“The court shall grant [a motion for] summary judgment if the movant shows that there is
no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of
law.” Rule 56(a) of the Rules of the Court of Federal Claims (“RCFC”). A court shall not grant
summary judgment if “the dispute about a material fact is ‘genuine.’” Anderson v. Liberty
Lobby, Inc., 477 U.S. 242, 248 (1986) (citation omitted). A factual dispute is considered
material and genuine if the “evidence is such that a reasonable [fact finder] could return a verdict
for the nonmoving party.” Id. “In determining whether there is a genuine issue of material fact,
the trial court must assume that the evidence presented by the non-movant is credible and draw
all justifiable inferences therefrom in the non-movant’s favor.” Monon Corp. v. Stoughton
Trailers, Inc., 239 F.3d 1253, 1257 (Fed. Cir. 2001) (citing Anderson, 477 U.S. at 255). “‘Only
disputes over facts that might affect the outcome of the suit under the governing law will
properly preclude the entry of summary judgment.’” Id. (quoting Anderson, 477 U.S. at 248).
“Contract interpretation is a matter of law and thus is amenable to decision on summary
judgment.” Gov’t Sys. Advisors, Inc. v. United States, 847 F.2d 811, 812 n.1 (Fed. Cir. 1988)
(citation omitted); see, e.g., NVT Techs. Inc. v. United States, 370 F.3d 1153, 1159 (Fed. Cir.
2004) (“The interpretation of a contract or solicitation is a question of law” (citation omitted)).
The party seeking summary judgment bears the burden of establishing the absence of any
genuine issues of material fact. See Celotex Corp. v. Catrett, 477 U.S. 317, 322–23 (1986).
When the moving party has met this burden, the burden shifts to the non-movant who must
present sufficient evidence to show a dispute over a material fact allowing a reasonable
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factfinder to rule in its favor. See Anderson, 477 U.S. at 256–57. The evidence does not need to
be admissible, but mere denials, conclusory statements, or evidence not significantly probative
will not defeat summary judgment. See Celotex, 477 U.S. at 322–24.
IV. Recitation of Disputed and Undisputed Facts
The Court begins with a recitation of the undisputed facts of this case, followed by a
description of facts in dispute which were clarified at oral argument.
A. Undisputed Facts in Plaintiff’s Complaint and Clarified by the Parties as
Undisputed
Given the global nature of the COVID-19 pandemic, the demand for medical masks
quickly outpaced supply, and mask manufacturers struggled to meet the sudden spike in demand.
See, e.g., Pl.’s Resp., App’x (“Pl.’s App’x”) at 51 (26 June 2020 email from Mr. Wright to
Contracting Officer) (noting 3M’s mask manufacturing was in “disarray”), ECF No. 31. The
solicitation at the center of this case was a 26 May 2020 email from the Contracting Officer,
stating “The Bureau of Prisons is in need of NIOSH N95 masks COVID-19 supplies and will
need to be delivered to several locations ASAP. Please provide a quote ASAP today . . . . We
would like to try to award today, if not by tomorrow.” Gov’t’s App’x at 305–06 (Solicitation
Email). On the same email chain, the Contracting Officer followed up the same day to request a
“one page quote with an actual delivery date.” Id. at 305. Neither email included a solicitation
number, noted any applicable Federal Acquisition Regulation (“FAR”) provisions, nor requested
any procedures more formal than an emailed one-page quote. See id. at 305–06. The next day,
the government awarded contract number 15BFA020PVNP10766 (“Contract No. 0766”) to
Wright “[t]o provide 1,000,000 N95 Masks” for a “Total Award Amount” of “$3,990,000.00.”
See Gov’t’s App’x at 1–2 (Standard Form 1449 contract award to Wright) (signed by both Mr.
Wright and the Contracting Officer on 27 May 2020). The contract form did not include a
solicitation number, requisition number, order number, date of solicitation, any contact for
solicitation information, or the method of solicitation—all of these boxes on the contract form
were left blank. See id. The Schedule of Supplies/Services attached to the form contract
specified “COVID-19 Supplies - - N95 Masks (1860 TDS),” which corresponds to a technical
data sheet for 3M brand masks attached to the contract. See Gov’t’s App’x at 4 (Schedule of
Supplies), 24 (3M Technical Data Sheet). Nowhere in the contract does it specifically require
the supplied masks to be NIOSH-approved. See generally Gov’t’s App’x at 1–18.
On 26 June 2020, Bernard Wright, President at Wright, emailed the Contracting Officer
and stated “the 3M product is in disarray” and “3M would not provide any product until late
September at the earliest.” Pl.’s App’x at 51 (26 June 2026 email exchange from Mr. Wright to
Contracting Officer). Mr. Wright suggested an alternative mask that “exceeds the 3M product
and has better testing” and attached a 20-page pamphlet for Biotech’s N95 mask. Id.; see also id.
at 52–71 (Biotech N95 pamphlet). The Contracting Officer responded she “still needed the
masks to be NIOSH approved” and she did not see “that on the pamphlet.” Id. at 50–51 (26 June
2020 email from Contracting Officer to Mr. Wright). Wright sent the following reply:
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Pages 14-20 are the testing for NIOSH and all test were met and approved from
Nelson Labs for NIOSH. In addition, the FDA has a higher authority than NIOSH
and has designated this mask as “FDA Cleared for Surgical Use and Operation
Room Environments”. This is the highest approval you can achieve through the
FDA for the criteria within the CDC.
Id. at 50 (26 June 2020 email from Mr. Wright to Contracting Officer). Based on this response,
the Contracting Officer asked Mr. Wright to “[p]lease move forward with this and provide
shipping dates ASAP.” Id. (26 June 2020 email from Contracting Officer to Mr. Wright).
The same day, 26 June 2020, Wright signed the first of several agreements with Biotech
to supply Biotech masks to the government. See Pl.’s App’x at 72 (26 June 2020 Product
Purchase Agreement), 83 (signature page). In the 26 June agreement, Biotech agreed to supply 1
million Biotech masks to Wright for $800,000, which was to be placed in escrow before Biotech
would initiate production of the masks. See id. at 75. The agreement also stipulated “delivery of
goods is non-cancellable and [Wright] must accept delivery of goods once BiotechInnova begins
manufacturing.” Id. at 74.
On 6 July 2020, Wright and Biotech signed another agreement in which Biotech would
supply masks to Wright for delivery to the government, and Wright would assign payment from
the government to Biotech through one of two methods: (1) if the government required a full
assignment of the $3 Million to Biotech, Biotech would keep $2.5 Million but return $500,000 to
Wright; or (2) if the government allowed payment to two different parties, the government would
pay Wright $500,000 directly and pay Biotech $2.5 Million directly. See Pl.’s App’x at 193–94
(6 July 2020 Purchase Agreement), 198 (signature page). Wright and Biotech then signed
another agreement on 9 July 2020 to clarify Wright’s right to receive the masks directly from the
Biotech’s manufacturer, and to reiterate the assignment of payment to Biotech through one of the
two methods outlined in the 6 July Product Purchase Agreement. See Pl.’s App’x at 228 (9 July
2020 First Amendment to Product Purchase Agreement), 229 (signature page).
To effectuate the assignment of payment to Biotech, Wright emailed a letter to the
Contracting Officer on 9 July 2020 entitled “Notice and Acknowledgment of Assignment,”
stating Wright was assigning to Biotech the right to receive $2.5 Million in proceeds from the
contract, and requesting the government acknowledge its receipt of the letter and its assent to
comply with the assignment. See Pl.’s App’x at 199 (Notice and Acknowledgement of
Assignment), 246 (9 July 2020 email from Mr. Wright to Contracting Officer). The Contracting
Officer responded and asked Wright to specify in the letter what specific amounts of the total $3
Million payout would go to whom. See id. at 243 (9 July 2020 emails from Contracting Officer
to Mr. Wright). Wright sent a revised letter, which the Contracting Officer signed the following
day. See id. at 200 (Notice and Acknowledgement of Assignment, signature page), 241–42 (9
July 2020 – 10 July 2020 email correspondence between Contracting Officer and Mr. Wright).
The letter also included, as exhibits, a copy of the original contract between Wright and the
government and a copy of the assignment agreement between Wright and Biotech. See id. at
202–34.
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Plaintiff delivered all masks to the government’s specified locations by 22 July 2020.
See Pl.’s App’x at 305–06 (12 Aug. 2020 Letter from Wright to Contracting Officer). After
receiving the masks, the government inspected the masks and, on 5 August 2020, the Contracting
Officer emailed Mr. Wright informing him the masks “were, in fact, not NIOSH approved,” so
she would be cancelling the contract. See Gov’t’s App’x at 41 (5 Aug. 2020 email from
Contracting Officer to Mr. Wright). On 12 August 2020, Wright submitted formal claims to the
government, pursuant to FAR 52.202-4(d) and the Contract Disputes Act (“CDA”), seeking
payment on the contract. See Pl.’s App’x at 300–312 (12 Aug. 2020 Wright CDA Claim). The
Contracting Officer issued her final decision rejecting the Biotech masks on 9 October 2020. See
Pl.’s App’x at 804 (Thomas Deposition, Exhibit List), 857 (Thomas Deposition).
In October 2020, the Contracting Officer contacted Wright, stating the BOP would be
willing to accept another alternative, Kimberly Clark masks, but advised “in no way is BOP
agreeing to accept these [Kimberly Clark] masks until a written settlement has been drafted and
signed by all parties.” See Pl.’s App’x at 588–90 (20 Oct. 2020 – 26 Oct. 2020 email
correspondence between Contracting Officer and Mr. Wright). Nevertheless, on 10 November
2020, without any settlement involving Biotech, the government sent Wright a contract
modification to the (at this point still terminated) Contract No. 0766, replacing Biotech with
Kimberly Clark. Compare Pl.’s App’x at 591–616 (10 Nov. 2020 Modification to Contract No.
0766, Modification No. P00001), with id. at 499 (5 Aug. 2020 Termination of Contract No.
0766, Modification No. P00001). On 7 January 2021, after delivering the Kimberly Clark masks
(but without payment), Wright filed another claim. See Pl.’s App’x at 710–11 (7 Jan. 2021 email
correspondence between Contracting Officer and Mr. Wright). On 20 January 2021, however,
Wright confirmed it had been fully paid under Contract No. 0766. See Pl.’s App’x at 707 (20
Jan. 2021 email from Wright to Contracting Officer). On 26 January 2021, the Contracting
Officer emailed Wright and Wright’s counsel to confirm the 5 August 2020 Termination and 9
October 2020 Final Decision had both been rescinded. See Pl.’s App’x at 712 (26 Jan. 2021
email from Contracting Officer to Mr. Wright). Plaintiff’s masks were ultimately returned, but
plaintiff was never paid. See Pl.’s App’x at 752 (Wright Deposition).
B. Disputed Facts Clarified at Oral Argument
The Court further clarified some additional disputed facts at oral argument. First, the
government suggested for the first time its payment to Wright following Wright’s delivery of 1
million Kimberly Clark masks was an “attempt at a settlement” related to a claim Wright filed
for payment on Contract No. 0766, not a payment on Contract No. 0766 itself. See 3 Mar. 2026
Oral Argument Transcript (“Tr.”) at 126:7–127:4, ECF No. 41. According to the government,
once Wright and the government “settled”—by Wright supplying the Kimberly Clark masks and
the government paying for those masks—then the contract termination was rescinded simply to
remove the termination from Wright’s record. See id. Curiously, this “settlement” was actually
effected by the Contracting Officer’s modification to the terminated contract. See id. (“THE
COURT: Why was the contract modified if it was just a settlement? [THE GOVERNMENT]: I
think that’s just what the contracting officer and Wright agreed to do. . . . at Mr. Wright’s
deposition, . . . he testified that the settlement was the contract modification.”)
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Second, the Court clarified the requirement in Contract No. 0766 for the masks to be
NIOSH-approved—on which the government relied to reject Biotech’s masks—is not connected
to any specific language in the contract itself. The government asserted “[t]he original contract
did reference NIOSH approval because it attached the product specifications, which are technical
requirements.” Tr. at 56:7–10. At the end of the contract, the government attached a two-page
technical brochure for the 3M 1860 mask, which does note the 3M mask features a “NIOSH
approved N95 rating.” See Gov’t’s App’x at 24 (3M Technical Data Sheet). Neither the form
contract nor the attached schedule of supplies specifically references any requirements related to
NIOSH approval, only explicitly requiring “N95 masks,” with a parenthetical note, “(1860
TDS).” Pl.’s App’x at 4 (Contract No. 0766, Schedule of Supplies). The government confirmed
the NIOSH requirement is not reflected anywhere else in the contract. See Tr. at 52:4–10
(“[THE COURT:] And then the contract, does it specify NIOSH? [THE GOVERNMENT]: It
does in the product specs . . . that are attached. THE COURT: Just the 3M brochure? [THE
GOVERNMENT]: That’s right, to the product specs that reference NIOSH approval.”).
Third, the Court clarified apparent miscommunication between Wright and the
government regarding the substitution of Biotech’s masks. When Wright first suggested
replacing the unobtainable 3M masks with Biotech masks, the Contracting Officer asked Wright
to confirm the masks were NIOSH approved. See Pl.’s App’x at 50–51 (26 June 2020 email
correspondence between Contracting Officer and Mr. Wright). In response, Wright stated:
“Pages 14-20 [of the Biotech product specifications] are the testing for NIOSH and all test[s]
were met and approved from Nelson Labs for NIOSH. In addition, the FDA has a higher
authority than NIOSH and has designated this mask as ‘FDA Cleared for Surgical Use and
Operation Room Environments’. This is the highest approval you can achieve through the FDA
for the criteria within the CDC.” Id. The Contracting Officer accepted this answer and asked
Wright to move forward. See id. This exchange suggests Wright truthfully represented the
Biotech mask’s virtues, but omitted that the masks were not specifically NIOSH approved. See
id. Wright would later extol the virtues of the Biotech masks again, asserting they were
“superior” to the NIOSH-approved 3M masks. See Pl.’s App’x at 251, 431 (19 July 2020 Letter
from Mr. Wright to Contracting Officer). Although plaintiff is not arguing, for purposes of this
motion, the government should have accepted the Biotech masks to satisfy the contract, there is
some conflict in the record as to whether the Biotech masks were actually superior to the
NIOSH-approved masks required by the Contracting Officer. See Tr. at 38:8–16 (counsel for
plaintiff describing Wright’s written dispute letters claiming Biotech’s masks outperform the 3M
masks); Pl.’s App’x at 251, 431 (19 July 2020 Letter from Mr. Wright to Contracting Officer).
V. Motion to Dismiss: Whether the Court has Subject Matter Jurisdiction Over
Plaintiff’s Claims Against Wright
The Court first determines whether it has subject matter jurisdiction over Counts III and
IV against Wright. The government argues Wright is a private party and this court’s jurisdiction
is limited to money judgments against the United States. See Gov’t’s Mot. at 10–11. Plaintiff
argues this court has jurisdiction “to render judgment upon any claim against, or dispute with, a
contractor arising under section 7104(b)(1) of title 41, including a dispute concerning
termination of a contract,” and thus the Court has jurisdiction over its contract claims against
Wright. Pl.’s Resp. at 28 (citing 28 U.S.C. § 1491(a)(2)).
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The Court’s jurisdiction “is confined to the rendition of money judgments in suits
brought for that relief against the United States, and if the relief sought is against others than the
United States the suit as to them must be ignored as beyond the jurisdiction of the court.” United
States v. Sherwood, 312 U.S. 584, 588 (1941) (citations omitted). Wright is a private business
registered in Texas. See Gov’t’s App’x at 259–61 (Wright Deposition). Plaintiff insists the
Court has jurisdiction over its claims against Wright regardless under its authority “to render
judgment upon any claim against, or dispute with, a contractor arising under [42 U.S.C.
§ 7104(b)(1)].” Am. Compl. ¶¶ 109, 122 (citing 28 U.S.C. § 1491(a)(2)). Section 7104,
however, provides a “right of appeal from [a] decision by [a] contracting officer,” not a
freestanding cause of action on private contract disputes. 42 U.S.C. § 7104(b)(1) (“[I]n lieu of
appealing the decision of a contracting officer under section 7103 of this title to an agency board,
a contractor may bring an action directly on the claim in the United States Court of Federal
Claims.”). At oral argument, plaintiff could not identify a single case where this court has
entertained a claim by a subcontractor directly against the prime contractor. See Tr. at 77:20–24
(“THE COURT: Can you identify any similar case . . . where the Court of Federal Claims has
permitted a contract claim by a private plaintiff against a private defendant? [PLAINTIFF]: I
cannot.”). Accordingly, given plaintiff’s claims in counts III and IV against Wright are against a
private defendant and not against the United States, they are “beyond the jurisdiction of the
court” and must be dismissed. Sherwood, 312 U.S. at 588; RCFC 12(h)(3) (“If the court
determines at any time that it lacks subject-matter jurisdiction, the court must dismiss the
action.”). 1
VI. Motion to Dismiss: Whether the Government Waived the Assignment of Claims Act
Requirements by Recognizing the Assignment to Biotech
The Court next determines whether the right to payment under Contract No. 0766 was
validly assigned to plaintiff. At oral argument, plaintiff confirmed it was not arguing Biotech is
a financing institution or that it complied with the strict requirements of the Anti-Assignment
Act, and plaintiff is only arguing “that there was a waiver” of those requirements by the
government. See Tr. at 84:4–15. Plaintiff argues the government waived the requirements of the
Anti-Assignment Act when the Contracting Officer signed the notice and acknowledgement of
assignment after being provided with all relevant information. See Pl.’s Resp. at 19. The
government argues it never waived the Act because it did not modify the contract to reflect the
assignment or make any payment to Biotech and was not informed of all relevant facts regarding
the assignment. See Gov’t’s Mot. at 15–16. First, the Court examines the totality of the
circumstances surrounding the assignment to determine whether the government waived the
requirements of the Act. Second, the Court determines whether the government was fully
appraised of all “highly relevant facts” related to the assignment.
1
Plaintiff confirmed at oral argument its claims against Wright in this case are nearly identical to those it is
currently pursuing in parallel litigation in Florida state court. See Tr. at 75:12–76:5. That litigation “is currently
stayed” pending the determination of this court’s jurisdiction over those claims. Tr. at 75:16–23. Given the Court’s
holding it lacks subject matter jurisdiction over plaintiff’s claims against Wright, the state court litigation is now
expected to proceed. See id.
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A plaintiff “bear[s] the burden of establishing the court’s jurisdiction by a preponderance
of the evidence.” Acevedo v. United States, 824 F.3d 1365, 1368 (Fed. Cir. 2016) (citing Trusted
Integration, Inc. v. United States, 659 F.3d 1159, 1163 (Fed. Cir. 2011)). “Generally, courts
treat Anti-Assignment Act disputes under the typical Rule 12(b)(1) motion to dismiss
framework.” Oxy USA Inc v. United States, 163 Fed. Cl. 75, 86–87 (2023) (collecting cases); see
also Ins. Co. of the West v. United States, 243 F.3d 1367, 1375 (Fed. Cir. 2001) (“We conclude
that the Tucker Act must be read to waive sovereign immunity for assignees as well as those
holding the original claim, except as barred by a statutory provision such as the Anti-Assignment
Act.”); Steppe v. United States, 945 F.2d 416 (Table), at *2 (Fed. Cir. 1991) (holding
Anti-Assignment Act voided any assignment and assignee therefore “lacked standing” to sue the
government). “Despite the bar of the Anti-Assignment statute . . . the Government, if it chooses
to do so, may recognize an assignment.” Tuftco Corp. v. United States, 614 F.2d 740, 745 (Ct.
Cl. 1980) (citations omitted). To determine whether the government waived the protections of
the Anti-Assignment Act, courts apply a “totality of the circumstances” test. See id. at 746 (“It is
unnecessary to identify any one particular act as constituting recognition of the assignments by
the Government. It is enough to say that the totality of the circumstances presented to the court
establishes the Government’s recognition of the assignments by its knowledge, assent, and action
consistent with the terms of the assignments.”). In Tuftco and subsequent cases, courts have
looked to a variety of factors in making this determination, “including whether: (1) the assignor
and/or the assignee sent notice of assignment to the Government; (2) the contracting officer
signed the notice of assignment; (3) the contracting officer modified the contract according to the
assignment; and (4) the Government sent payments to the assignee pursuant to the assignment.”
Riviera Fin. Of Tex., Inc. v. United States, 58 Fed. Cl. 528, 530–31 (2003) (summarizing the
relevant factors in Tuftco, 614 F.2d at 745–46) (other citation omitted). “[T]hese factors are not
meant to be exhaustive, and all need not be present in a given case.” Id. “[W]here the
Government’s course of conduct, its statements to the parties and its dealings with the assignee
indicate it acknowledges the assignee as the contractor, recognition has been found.” Tuftco, 614
F.2d at 745 (citations omitted).
In Tuftco, the Federal Circuit’s predecessor court (the Court of Claims) addressed a claim
related to a Housing and Urban Development (“HUD”) contract for the construction of mobile
homes; the court addressed the government’s recognition of assignments in a precedential panel
opinion. See Tuftco, 614 F.2d at 741–42; see also Tr. at 86:14–17 (the government agreeing at
oral argument Tuftco is “a binding Court of Claims case.”). The prime contractor in Tuftco,
Grant, engaged another company, Winchester, to build the homes and, after discussing the
arrangement with the contracting officer, assigned the proceeds of the contract to the second
company. See id. at 742. Before the assignment was made, both contractors contacted the
contracting officer, who advised them “despite the Anti-Assignment Act, if Winchester would
assume Grant’s obligations HUD would make all payments directly to Winchester . . . instead of
directly to Grant.” Id. The prime contractor sent a notice of assignment to the contracting
officer, who wrote at the bottom of the letter “assignment acknowledged.” See id. Despite the
notice and contracting officer’s written notes, the government sent some payments directly to
Winchester, and others to Grant, and later insisted it did not actually “recognize or acknowledge
the assignments.” See id. at 743. The Court of Claims held the government had validly
recognized the assignment because of the contracting officer’s notice and assent to the
arrangement, stating “[g]iven the earlier contact Winchester and Grant had with [the contracting
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officer] and the advice he gave, it is difficult to see how [the contracting officer’s] signed
acknowledgement was anything other than assent to the arrangement.” Id. at 746. The court
further held “[a]ny doubts on this score are dispelled by the Government's actions consistent with
its demonstrated awareness and acknowledgement of the assignments,” including partial
payment to Winchester and acceptance of Winch