Island Creek Associates, LLC v. United States
CourtCourt of Appeals for the Federal Circuit
Date FiledSeptember 16, 2026
Docket25-1140
StatusPublished
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Full Opinion
Case: 25-1140 Document: 66 Page: 1 Filed: 09/16/2026
United States Court of Appeals
for the Federal Circuit
______________________
ISLAND CREEK ASSOCIATES, LLC,
Plaintiff-Appellant
v.
UNITED STATES,
Defendant-Appellee
______________________
2025-1140
______________________
Appeal from the United States Court of Federal Claims
in No. 1:24-cv-00554-DAT, Judge David A. Tapp.
______________________
Decided: September 16, 2026
______________________
NICOLE DESIREE POTTROFF, Koprince McCall Pottroff
LLC, Lawrence, KS, argued for plaintiff-appellant. Also
represented by JOHN LEE HOLTZ, SHANE J. MCCALL,
GREGORY PHILLIP WEBER.
PATRICK ANGULO, Commercial Litigation Branch, Civil
Division, United States Department of Justice, Washing-
ton, DC, argued for defendant-appellee. Also represented
by STEVEN MICHAEL MAGER, PATRICIA M. MCCARTHY,
BRETT SHUMATE.
______________________
Before DYK, REYNA, and STARK, Circuit Judges.
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2 ISLAND CREEK ASSOCIATES, LLC v. US
REYNA, Circuit Judge.
Island Creek Associates, LLC appeals the judgment of
the United States Court of Federal Claims dismissing its
five-count complaint for lack of jurisdiction. We affirm, but
on alternative grounds. The Court of Federal Claims lacks
jurisdiction over Counts I–III and V of the complaint be-
cause these counts are moot by corrective action taken by
the government. The Court of Federal Claims lacks juris-
diction over Count IV because the relief sought in Count IV
is barred under the Federal Acquisition Streamlining Act
of 1994’s task order bar. 10 U.S.C. § 3406(f). To the extent
Count IV challenges the contract to fellow awardee Precise
Systems Inc., Island Creek lacks statutory standing to
challenge this award.
BACKGROUND
I. SeaPort-NxG MAC
On February 14, 2018, the United States Navy (“Navy”
or “agency”) issued a solicitation for proposals for indefi-
nite-delivery, indefinite-quantity (“IDIQ”) multiple award
contracts (“MACs”), referred to in the solicitation as the
“SeaPort-Next Generation” MAC (“SeaPort-NxG MAC”). 1
The solicitation contemplated a maximum of $10 billion in
engineering and program management services, to be ob-
tained from numerous awardees of a SeaPort-NxG MAC.
J.A. 67.
On January 2, 2019, the Navy awarded a SeaPort-NxG
MAC, Contract No. N0017819D7896, to appellant Island
Creek Associates, LLC (“Island Creek”). J.A. 40. The Navy
1 An “IDIQ” contract “allows an agency to issue a
broad solicitation for a general procurement goal and then
more detailed solicitations for individual task orders as
specific needs arise.” 22nd Century Techs., Inc. v. United
States, 57 F.4th 993, 996 (Fed. Cir. 2023).
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ISLAND CREEK ASSOCIATES, LLC v. US 3
also awarded, respectively, SeaPort-NxG MAC Contract
Nos. N0017819D7533 and N0017819D8321 to non-parties
Don Selvy Enterprises, Inc. (“DSE”) and Precise Systems
Inc. (“Precise”). These three contracts had the same terms.
Id.
There are three sections of the SeaPort-NxG MAC that
together explain which companies can hold a SeaPort-NxG
MAC. First, Section C.10.2 of the SeaPort-NxG MAC, ti-
tled “One Prime Contract Per Company,” provided that the
agency would award only one SeaPort-NxG MAC per one
“company,” also referred to as a “Prime contract holder.”
J.A. 79. Section C.10.2 noted that a “[c]ompany” included
“affiliates” and “Joint Ventures.” Id. This section also
noted that an “affiliated company” could submit a proposal
in response to a task order solicitation issued under the
SeaPort-NxG MAC but that such proposal had to be sub-
mitted through the account of the “Prime contract holder
and the proposal should clearly identify the affiliate as the
prime.” Id.
Second, Section C.10.1 of the SeaPort-NxG MAC, titled
“Definitions,” defined “[a]ffiliates” as “business concerns
that are affiliates of each other if, directly or indirectly, ei-
ther one controls or has the power to control the other, or
another concern controls or has the power to control both.”
Id.
Third, Section C.10.3 clarified how the “One Prime
Contract Per Company” rule applied to joint ventures.
J.A. 144. 2 Section C.10.3 provided that:
2 Section C.10.3 was not part of the original terms of
the SeaPort-NxG MAC. The agency later added it to the
terms of the contract via a “mass modification,” meaning
the terms of all issued SeaPort-NxG MACs were uniformly
modified.
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4 ISLAND CREEK ASSOCIATES, LLC v. US
A Joint Venture and individual partners in the
Joint Venture can only hold one SeaPort NxG
MAC. If one partner of the Joint Venture holds a
Prime MAC contract, then the Joint Venture entity
cannot also hold a subsequent Prime MAC con-
tract. Members of the Joint Venture must decide
which - the Joint Venture or the individual partner
- would be the Prime MAC holder.
J.A. 144.
On September 15, 2022, the U.S. Small Business Ad-
ministration (“SBA”) approved DSE and Precise to partici-
pate in the SBA’s “Mentor-Protégé Program” (“MPP”) with
DSE as the protégé company and Precise as the mentor
company. J.A. 348, J.A. 352. 3 On October 14, 2022, DSE
and Precise entered a joint venture named Secise, LLC
(“Secise”). J.A. 348.
On January 4, 2024, the Navy issued its twelfth mass
modification to the SeaPort-NxG MAC, giving rise to the
below bid protest proceedings (“January 4, 2024 Modifica-
tion”). J.A. 349. In addition to making several other mod-
ifications to the SeaPort-NxG MAC not at issue in this
appeal, see J.A. 278–319, the twelfth modification created
an exception to the “One Prime Contract Per Company”
rule for joint ventures participating in the SBA’s MPP. See
J.A. 292. Under this exception, a joint venture could hold
a SeaPort-NxG MAC, as could mentor and protégé compa-
nies. See id. In other words, as relevant here, the joint
3 The SBA’s MPP allows “small businesses with lim-
ited industry experience (protégés) [to] partner with expe-
rienced government contractors (mentors) to compete for
federal procurement contracts.” SH Synergy, LLC v.
United States, 165 Fed. Cl. 745, 751 (2023) (citation modi-
fied) (quoting 13 C.F.R. § 125.9(a)).
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ISLAND CREEK ASSOCIATES, LLC v. US 5
venture, the mentor, and the protégé could each hold a dis-
tinct SeaPort-NxG MAC. Meanwhile, for those joint ven-
tures not participating in the SBA’s MPP, the joint venture
and its constituent partners could not each hold a SeaPort-
NxG MAC. The January 4, 2024 Modification imple-
mented this new rule by modifying the (1) definition of “Af-
filiates” in section C.10.1, (2) “One Prime Contract Per
Company” rule in section C.10.2, and (3) definition of a
“joint venture” in section C.10.3. See J.A. 292.
On January 10, 2024, the agency issued a task order
under the SeaPort-NxG MAC to Secise. J.A. 351, ¶100. 4
II. Underlying Bid Protest
On April 10, 2024, Island Creek filed a five-count com-
plaint in the United States Court of Federal Claims (“Fed-
eral Claims Court”) under the Tucker Act bid protest
jurisdiction provided at 28 U.S.C. § 1491(b)(1). Count I
challenged the agency’s “Amendment,” i.e., the January 4,
2024 Modification, as making “an exception” for SBA’s
MPP joint ventures, who “could hold a SeaPort contract
even if one or more of their members do.” J.A. 354, ¶117.
According to Island Creek, the “[a]mendment” violated the
Federal Acquisition Regulation (“FAR”) § 1.602-2(b) provi-
sion that contracting officers shall “[e]nsure that contrac-
tors receive impartial, fair, and equitable treatment.”
J.A. 354, ¶113 (quoting FAR § 1.602-2(b)).
Count II challenged the agency’s “Actions,” i.e., the ac-
tion of:
amend[ing] SeaPort in such a manner so as to allow
contractors with [MPP] joint ventures who both
4 It is not clear from the record below whether Secise
held a SeaPort-NxG MAC at the time it was awarded a task
order. Compare J.A. 351, ¶¶101–02, with J.A. 351–53,
¶¶104–07.
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6 ISLAND CREEK ASSOCIATES, LLC v. US
individually hold a SeaPort contract and whose
joint venture hold[s] a SeaPort contract to main-
tain both contracts, giving said contractors an ad-
vantage in being able to bid either a joint venture
or on their own.
J.A. 355, ¶127. According to Island Creek, the “amend-
ment” violated FAR § 3.101-1, which requires “[g]overn-
ment business” to be conducted “with complete impartiality
and with preferential treatment for none.” J.A. 355, ¶126
(quoting FAR § 3.101-1).
Count III challenged the SeaPort-NxG MAC’s “Provi-
sions,” i.e., the “amendment” which “benefit[ed] and
treat[ed] [MPP] joint ventures and their component mem-
bers differently with regards to ability to hold SeaPort
IDIQ contracts simultaneously and remain eligible for
awards whereas other joint ventures [could] not.” J.A. 356,
¶133. According to Island Creek, the “amendment” vio-
lated FAR § 16.505(b)(1), which provides that for orders un-
der MACs, the “contracting officer must provide each
awardee a fair opportunity to be considered for each order
exceeding the micro-purchase threshold issued under mul-
tiple delivery-order contracts or multiple task-order con-
tracts.” J.A. 356, ¶132 (quoting FAR § 16.505(b)(1)).
Count IV, unlike counts I–III, did not directly chal-
lenge the January 4, 2024 Modification but rather the
agency’s “Fail[ure] to Conduct Conflicts Analysis and Mit-
igation Required by FAR 9.504 and 9.506.” J.A. 356. These
two FAR provisions concern steps the agency must take to
evaluate whether an organizational conflict of interest
(“OCI”) exists between the contracting agency and poten-
tial bidders as early in the acquisition process as possible,
and the steps the agency should take to address such con-
flicts. See J.A. 357, ¶¶138–40 (quoting FAR § 9.504(a), (c),
and citing FAR § 9.506). Count IV alleged that a “signifi-
cant potential conflict of interest” existed between the
agency and Precise. J.A. 357, ¶141. Specifically, Jeff
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ISLAND CREEK ASSOCIATES, LLC v. US 7
Guarnero, a Naval contracting official that was “heavily in-
fluential and involved in the administration of Seaport,”
was married to Diana Sovine, a program manager at Pre-
cise who worked on the SeaPort-NxG procurement.
J.A. 358, ¶¶142–43. Count IV referenced the January 4,
2024 Modification as “evidence[]” of a conflict of interest,
specifically an unequal access to information conflict of in-
terest arising from their spousal relationship that resulted
in a “substantial and unfair competitive advantage” to Pre-
cise. J.A. 358, ¶¶145, 148–49.
Count V challenged the “amendment,” i.e., the January
4, 2024 Modification, as “unduly restrictive” and as “fa-
vor[ing] certain offerors without justification.” J.A. 359 (ci-
tation modified). Specifically, Count V alleged that “[t]here
is no patent reasonable basis as to why [SBA’s MPP] joint
ventures are favored to the exclusion of all other joint ven-
tures.” J.A. 360, ¶163.
As relief, Island Creek requested:
a) [] SeaPort [to] be amended so as to properly fol-
low federal procurement law. b) An order that a full
investigation be conducted . . . regarding the con-
flict of interest between Guarnero and Precise;
c) An order directing the Agency to conduct proper
conflicts analysis and mitigation in accordance
with FAR §§ 9.504 and 9.506; d) That Jeff Guar-
nero recuse himself from involvement with all task
order procurements containing the changed lan-
guage in SeaPort; e) Any other relief that this
Court deems appropriate.
J.A. 360–61.
On May 1, 2024, the Navy filed with the Federal
Claims Court a notice of agency partial corrective action
(“Corrective Action”) in which it noted it was going to take
corrective action that at least “partially moot[ed]” Island
Creek’s protest. J.A. 412–13. The Navy explained that it
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8 ISLAND CREEK ASSOCIATES, LLC v. US
was going to reverse the portion of the January 4, 2024
Modification at issue in Island Creek’s protest, which in-
cluded reversal of modifications to Sections C.10.1, C.10.2,
and C.10.3 of the SeaPort-NxG MAC, “thereby reinstating
the prior definition of ‘Affiliates,’ removing the mentor-pro-
tégé exception to the one prime contract per company rule,
and reverting to the previous language concerning joint
ventures.” J.A. 412.
On that same day, the Navy filed a motion to dismiss
Island Creek’s complaint, arguing that its Corrective Ac-
tion mooted Counts I–III and V since Island Creek “ob-
tained all relief contemplated” by these counts, “namely the
amendment of SeaPort NxG MAC.” J.A. 429–30. As to
Count IV, the Navy argued this count must be dismissed
as barred by the Federal Acquisition Streamlining Act of
1994 (“FASA”), which bars a bid protest from being filed in
the Federal Claims Court that is “in connection with the
issuance or proposed issuance of a task or delivery order,”
except in limited circumstances not at issue in Island
Creek’s protest. J.A. 432–33 (quoting 10 U.S.C. § 3406(f)). 5
Island Creek responded that the Corrective Action did
not moot Counts I–III and V because the “underlying con-
cern in each count is the conflict of interest that drove the
modification to the SeaPort NxG IDIQ contract,” and thus
5 The Navy alternatively argued that dismissal of all
counts was necessary because Island Creek lacked statu-
tory standing under 28 U.S.C. § 1491(b)(1) because it was
not an “interested party” under this provision.
J.A. 435–36. The Navy also alternatively argued that dis-
missal of a subset of counts was necessary because these
counts related to contract administration and thus Island
Creek first needed to comply with requirements under the
Contract Disputes Act to fall within the Federal Claims
Court’s jurisdiction, requirements that Island Creek had
not yet completed. J.A. 430–32.
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ISLAND CREEK ASSOCIATES, LLC v. US 9
“[s]imply changing the language back to the previous lan-
guage does not resolve this concern.” J.A. 499. As to Count
IV, Island Creek argued that the FASA bar did not apply
because this count does not involve “a protest of any task
order or even a group of task orders” but rather “a change
in the underlying [SeaPort-NxG MAC]” that stemmed from
a conflict of interest. J.A. 503–04.
On August 28, 2024, the Federal Claims Court granted
the Navy’s motion to dismiss on the ground that Island
Creek was not an “interested party” under 28 U.S.C.
§ 1491(b)(1) and thus lacked statutory standing to bring
any count in its complaint. J.A. 7–18. The Federal Claims
Court declined to address the Navy’s primary arguments
on mootness and the FASA bar. Id.
Island Creek timely appeals. We have jurisdiction un-
der 28 U.S.C. § 1295(a)(3).
STANDARD OF REVIEW
We review de novo a grant of a motion to dismiss. Har-
monia Holdings Grp., LLC v. United States, 999 F.3d 1397,
1401 (Fed. Cir. 2021). We also review questions of statu-
tory interpretation de novo. SRA Int’l, Inc. v. United
States, 766 F.3d 1409, 1412 (Fed. Cir. 2014).
DISCUSSION
We decide this appeal based on mootness principles
and the FASA bar at 10 U.S.C. § 3406(f). Wyandot Nation
of Kan. v. United States, 858 F.3d 1392, 1397 (Fed. Cir.
2017) (“We may affirm the Court of Federal Claims’ dismis-
sal on any ground supported by the record.”). We begin
with the mootness of Counts I–III and V and then turn to
the FASA’s barring of Count IV.
I. Counts I–III and V
The parties dispute whether the Corrective Action
mooted Counts I–III and V of Island Creek’s complaint. See
Appellee Br. 42–47; Reply Br. 21. For the following
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10 ISLAND CREEK ASSOCIATES, LLC v. US
reasons, we determine that the Corrective Action mooted
these counts.
“Although the Court of Federal Claims is an Article I
tribunal, it generally adheres to traditional justiciability
standards applicable to courts established under Article
III.” Shinnecock Indian Nation v. United States, 782 F.3d
1345, 1351 n.7 (Fed. Cir. 2015); Associated Energy Grp.,
LLC v. United States, 131 F.4th 1312, 1317 (Fed. Cir.
2025). “Article III of the Constitution grants the Judicial
Branch authority to adjudicate ‘Cases’ and ‘Controver-
sies.’” Already, LLC v. Nike, Inc., 568 U.S. 85, 90 (2013).
“A case becomes moot—and therefore no longer a ‘Case’ or
‘Controversy’ for purposes of Article III—when the issues
presented are no longer live or the parties lack a legally
cognizable interest in the outcome.” Id. at 91 (citation mod-
ified). A defendant’s voluntary cessation of a challenged
practice will not necessarily moot the litigation unless the
following two conditions are satisfied: (1) “there is no rea-
sonable expectation . . . that the alleged violation will re-
cur, and (2) interim relief or events have completely and
irrevocably eradicated the effects of the alleged violation.”
Cty. of L.A. v. Davis, 440 U.S. 625, 631 (1979) (citation mod-
ified; emphases added). “When both conditions are satis-
fied it may be said that the case is moot because neither
party has a legally cognizable interest in the final determi-
nation of the underlying questions of fact and law.” Id.
The first condition is met here because there is no rea-
sonable expectation that the alleged violation pleaded in
Counts I–III and V, i.e., the allegedly improper January 4,
2024 Modification, will reoccur. Put another way, there
can be no reasonable expectation that the Navy will reissue
a modification to the SeaPort-NxG MAC that would once
again implement the challenged portions of the January 4,
2024 Modification.
Island Creek suggests, without evidence, that the gov-
ernment could reverse the Corrective Action and thus the
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ISLAND CREEK ASSOCIATES, LLC v. US 11
alleged violation will likely reoccur. See, e.g., Reply Br. 21
(acknowledging the government’s representation to this
court that it “permanently” reversed the January 4, 2024
Modification but arguing that “simply saying something
that can be easily changed back is ‘permanent’ borders on
the absurd”). Island Creek’s speculation does not rise to
the level of evidence needed to overcome the presumption
of good faith. “[G]overnment officials are presumed to act
in good faith.” Savantage Fin. Servs., Inc. v. United States,
595 F.3d 1282, 1288 (Fed. Cir. 2010). This presumption
stands unless proof to the contrary is “almost irrefragable.”
Galen Med. Assocs., Inc. v. United States, 369 F.3d 1324,
1330 (Fed. Cir. 2004) (citation omitted). “Almost irrefraga-
ble proof amounts to clear and convincing evidence.” Id.
(citation omitted). Below, the government represented to
the Federal Claims Court it would “make permanent the
suspension of the January 4, 2024 modifications.” J.A. 412.
On appeal, the government represented to this court that
the Navy “permanent[ly] reversed the contested contract
modification . . . and there is no indication that the Navy
will reinstate a modification that no longer exists.” Appel-
lee Br. 46 (internal quotation marks omitted); see also Oral
Argument 14:17–14:24 (government’s counsel representing
that the January 4, 2024 Modification “has been perma-
nently suspended”). Given the presumption of good faith
and the absence of clear and convincing evidence that the
government’s representations made below or on appeal are
false, we determine that there is no reasonable expectation
that the Navy will reinstate the January 4, 2024 Modifica-
tion.
The second condition is met here because the Correc-
tive Action eradicated the effects of the “alleged violation”
pleaded under Counts I–III and V, i.e., that the January 4,
2024 Modification violated the FAR when it provided joint
ventures in the SBA’s MPP with an unfair advantage in
the SeaPort-NxG procurement. See J.A. 354, ¶113;
J.A. 355, ¶127; J.A. 356, ¶132; J.A. 359; J.A. 360, ¶163.
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12 ISLAND CREEK ASSOCIATES, LLC v. US
The Navy’s Corrective Action rescinded the January 4,
2024 Modification as to Sections C.10.1, C.10.2, and C.10.3
such that competition for task orders under the SeaPort-
NxG MAC reverted back to the previous “One Prime Con-
tract Per Company” rule, i.e., that all joint ventures, re-
gardless of participation in the SBA’s MPP, could not hold
a SeaPort-NxG MAC if one of its constituent partners held
one. Thus, the Navy’s Corrective Action eradicated the al-
legedly improper effects of the January 4, 2024 Modifica-
tion.
Island Creek argues that the Corrective Action did not
eradicate the effects of the Navy’s “alleged violation,” argu-
ing that violation was not simply the January 4, 2024 Mod-
ification but also the “underlying concern” of OCI between
the Navy and Precise. Reply Br. 21. We are not persuaded.
Counts I–III and V plainly allege, and solely focus on, the
alleged harms stemming from the January 4, 2024 Modifi-
cation. See J.A. 353–55, ¶¶112–24 (Count I); J.A. 355–56,
¶¶125–30 (Count II); J.A. 356, ¶¶131–35 (Count III);
J.A. 359–60, ¶¶153–64 (Count V). Confirming our conclu-
sion that the Navy’s Corrective Action mooted Counts I–III
and V is that the Corrective Action granted the relief that
Island Creek sought in relation to these counts, i.e., that
“SeaPort be amended so as to properly follow federal pro-
curement law.” See J.A. 360. Thus, because the relief
sought by Island Creek concerning the January 4, 2024
Modification “has been granted . . . the case should gener-
ally be dismissed.” Chapman L. Firm Co. v. Greenleaf Con-
str. Co., 490 F.3d 934, 939 (Fed. Cir. 2007). For these
reasons, the Navy’s Corrective Action mooted I–III and V
and we affirm the Federal Claims Court’s dismissal of
these counts.
II. Count IV
We next review whether Count IV’s allegation that the
Navy failed to check for and mitigate an OCI between the
Navy and Precise, which arose from the spousal
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ISLAND CREEK ASSOCIATES, LLC v. US 13
relationship between Mr. Guarnero and Ms. Sovine, falls
under the FASA bar at 10 U.S.C. § 3406(f). 6 For the follow-
ing reasons, we determine that it does.
Under 28 U.S.C. § 1491(b)(1), the Federal Claims
Court has jurisdiction to hear bid protests of certain federal
contracts. This provision states that:
the Unite[d] States Court of Federal Claims . . .
shall have jurisdiction to render judgment on an
action by an interested party objecting to a solicita-
tion by a Federal agency for bids or proposals for a
6 Count IV also alleges that the OCI between the
Navy and Precise “influenced” the January 4, 2024 Modifi-
cation. See J.A. 358, ¶148. This portion of Count IV, which
connects the OCI to the January 4, 2024 Modification, is
moot for the same reasons Counts I–III and V are moot.
Additionally, to the extent that Island Creek is protesting
the award of a Seaport-NxG MAC award to Precise under
Count IV, Island Creek lacks statutory standing to chal-
lenge Precise’s status as a Seaport-NxG MAC awardee. See
Oral Arg. at 8:48–57 (appellant’s counsel stating that
“there has yet to be an investigation [into the alleged OCI]”
and that “this company [Precise] should not be allowed to
be on this IDIQ”). To bring a bid protest under the Tucker
Act, Island Creek must be an “interested party.” 28 U.S.C.
§ 1491(b)(1). To be an interested party for the purposes of
contesting Precise’s Seaport-NxG MAC award, Island
Creek would need to be an “actual or prospective bid-
der[]”—that is, a disappointed bidder—for the contract Pre-
cise won. See Percipient.ai, Inc. v. United States, 153 F.4th
1226, 1235 (Fed. Cir. 2025) (en banc). However, Island
Creek was a successful bidder for a Seaport-NxG MAC and
could not have been an actual or prospective bidder for the
contract awarded to Precise.
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14 ISLAND CREEK ASSOCIATES, LLC v. US
proposed contract or to a proposed award or the
award of a contract or any alleged violation of stat-
ute or regulation in connection with a procurement
or a proposed procurement.
28 U.S.C. § 1491(b)(1).
The Federal Claims Court’s bid protest jurisdiction un-
der 28 U.S.C. § 1491(b)(1) is limited by 10 U.S.C. § 3406(f),
a provision in FASA which bars judicial review of protests
“in connection with” the issuance or proposed issuance of
task orders except in limited circumstances not at issue
here (“FASA bar”). The FASA bar provides that:
[a] protest is not authorized in connection with the
issuance or proposed issuance of a task or delivery
order except for—(a) a protest on the ground that
the order increases the scope, period, or maximum
value of the contract under which the order is is-
sued; or (b) a protest of an order valued in excess of
$35,000,000.
10 U.S.C. § 3406(f) (2026). 7 It further provides that the
Comptroller General of the United States “shall have ex-
clusive jurisdiction of a protest authorized under para-
graph (1)(B),” i.e., protests of an order valued in excess of
$35,000,000. Id. This statutory language “is clear and
gives the [Federal Claims Court] no room to exercise juris-
diction over claims made ‘in connection with the issuance
or proposed issuance of a task or delivery order.’” 22nd
7 There are two FASA bars. One applies to public
contracts generally. See 41 U.S.C. § 4106(f)(1). One applies
to the Department of Defense. See 10 U.S.C. § 3406(f)(1).
While the text of these provisions is similar, there are dif-
ferent monetary thresholds over which task order protests
may be heard by the Comptroller General. Here,
10 U.S.C. § 3406(f)(1) is applicable because the Navy oper-
ates under the oversight of the Department of Defense.
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ISLAND CREEK ASSOCIATES, LLC v. US 15
Century, 57 F.4th at 998 (citation modified). We have in-
terpreted the “in connection with” language to bar protests
in which there was a direct and causal connection between
the protest and the agency’s issuance, or proposed issu-
ance, of task orders. See id. at 998–1000 (affirming deci-
sion that FASA barred bid protest of the SBA’s
determination that bidder was no longer a “small business”
under its regulations, which ultimately disqualified bidder
from being awarded a particular task order, because there
was a “direct and causal” connection between the SBA’s de-
termination and the task order award); see also SRA Int’l,
Inc. v. United States, 766 F.3d 1409, 1413 (Fed. Cir. 2014)
(holding that FASA barred bid protest of the contracting
agency’s waiver of an OCI because the waiver “was directly
and causally connected to issuance of [a task order], despite
being executed after issuance”).
Here, there is a direct and causal connection between
Count IV and the Navy’s issuance of task orders under the
SeaPort-NxG MAC, and thus the FASA bar applies as to
Count IV. This count alleges that the Navy’s failure to
check for and mitigate an OCI between the Navy and Pre-
cise, which allegedly arose from the spousal relationship
between Mr. Guarnero and Ms. Sovine, violated several
OCI provisions of the FAR. J.A. 356–57, ¶¶136–41. This
alleged unchecked and unmitigated OCI is directly and
causally connected to the Navy’s issuance of task orders
under the SeaPort-NxG MAC. Specifically, Count IV al-
leges that OCI skews the competition of task orders under
the SeaPort-NxG MAC in favor of Precise. See J.A. 357,
¶141 (alleging that the OCI “undermines normal competi-
tion” under the SeaPort-NxG MAC); J.A. 358, ¶145 (alleg-
ing that “an obvious risk of unequal access to information
. . . arises from the spousal relationship that could result in
a substantial and unfair competitive advantage for Pre-
cise . . . ”); J.A. 358, ¶146 (alleging that “obvious risk of par-
tiality and bias . . . arises from the spousal relationship
that could result in substantial and unfair competitive
Case: 25-1140 Document: 66 Page: 16 Filed: 09/16/2026
16 ISLAND CREEK ASSOCIATES, LLC v. US
advantage for Precise”); J.A. 358, ¶147 (alleging that Mr.
Guarnero “has acted, in fact, to exploit the conflict of inter-
est in making awards to Precise”). Thus, even though
Count IV does not explicitly reference a particular task or-
der, the alleged OCI clearly has a direct and causal connec-
tion to the Navy’s issuance of task orders under the
SeaPort-NxG MAC. See Oral Argument, 4:20–4:27 (appel-
lant’s counsel noting that “[t]he OCI should not just be ig-
nored. The OCI had a significant impact on competition
here.”). For these reasons, FASA bars Count IV of Island
Creek’s complaint. 8
CONCLUSION
We have considered Island Creek’s remaining argu-
ments and find them unpersuasive. For the foregoing rea-
sons, we affirm the Federal Claims Court’s dismissal of
Island Creek’s five-count complaint. We hold that Counts
I–III and V are moot in light of the Navy’s Corrective Ac-
tion and Count IV is barred by FASA’s provision at
10 U.S.C. § 3406(f)(1). To the extent Count IV challenges
the IDIQ contract award to Precise, Island Creek lacks
statutory standing to challenge this award.
AFFIRMED
8 Following oral argument, Island Creek moved for
leave to supplement the record with a list of task orders
“relevant to the conflict of interest arguments of the pro-
test.” ECF No. 63 at 2-3. We deny the motion as moot. As
previously discussed, Count IV, which challenges the OCI,
is barred under FASA. Information about particular task
orders allegedly tainted by this OCI does not change this
conclusion. If anything, such information would support
our conclusion that Count IV has a direct and causal con-
nection to the issuance of task orders and thus is barred by
FASA.