Business Law Blog

AccelGov v. United States: Motion to Dismiss Denied in Bid Protest

Written by Joe Whitcomb | April 18, 2026

Procurement and Bid Protest Filing

AccelGov, LLC filed a bid protest action against the United States on May 10, 2023, challenging a federal procurement decision. Shortly after, ISI-Markon JV, LLC filed a separate protest concerning the same procurement. The Court consolidated the two cases and permitted SLICOM to intervene as a defendant.

The procurement involved the evaluation of proposals and the selection of an awardee. AccelGov and ISI-Markon both challenged the agency’s evaluation process and the resulting award decision.

Amended Complaints and Allegations

On June 26, 2023, AccelGov and ISI-Markon filed amended complaints. AccelGov alleged that the agency failed to properly evaluate its technical proposal, did not properly assess SLICOM’s past performance, and made an improper source selection decision. ISI-Markon raised similar issues, including challenges to the agency’s technical evaluations, its assessment of past performance, and its best value trade-off decision. Both companies requested that the Court direct the agency to reevaluate proposals in accordance with the solicitation and applicable law.

On the same date, both plaintiffs filed motions for judgment on the administrative record. AccelGov also filed a motion to supplement the administrative record with additional documents related to SLICOM’s past performance. No party opposed that motion within the deadline.

Government’s Motion and Proposed Corrective Action

On July 11, 2023, the United States filed a motion to dismiss the complaints. The government stated that the agency had cancelled the contract award to SLICOM and planned to solicit new proposals, reevaluate the submissions, and take additional corrective action under applicable procurement laws and regulations.

The government stated that these steps provided the relief requested in the amended complaints. SLICOM agreed with the motion to dismiss. AccelGov and ISI-Markon opposed the motion and questioned the lack of detail regarding the proposed corrective action. They raised concerns about how the agency intended to proceed and whether the corrective action would address the issues identified in their protests.

The Court held a status conference on July 17, 2023, to address the motion and the parties’ positions.

Court’s Analysis of Corrective Action

The Court reviewed whether the proposed corrective action justified dismissal of the case. It examined the legal standards governing bid protest jurisdiction and the review of agency corrective actions.

The Court stated that its jurisdiction included challenges to corrective action and extended to situations where corrective action had not yet been fully implemented. It also reviewed the standard for evaluating such actions, which required a rational basis supported by a reasonable explanation.

The Court considered whether the government had shown that its corrective action rendered the case moot. It noted that dismissal could be appropriate if the relief requested had already been granted or if the issues in dispute were no longer present.

The Court examined the details provided by the government regarding the corrective action. It found that the government did not explain how the proposed steps would address the specific issues raised in the amended complaints. The proposed actions included amending the solicitation, requesting new proposals, and conducting a reevaluation, but the record did not show how these steps related to the alleged errors in the evaluation of existing proposals.

The Court also reviewed whether the corrective action had a rational basis. It found that the record did not contain sufficient evidence showing that the agency assessed its needs or determined that the original solicitation was inadequate. The Court noted that it could not evaluate the reasonableness of the corrective action without more detailed information.

The Court further determined that it could not conclude that the case was moot. It found that the government had not demonstrated that the corrective action would fully resolve the issues raised by AccelGov and ISI-Markon. The Court also noted that the plaintiffs could potentially amend their complaints to challenge the corrective action itself.

Court’s Decision

The Court denied the government’s motion to dismiss without prejudice. It also granted AccelGov’s unopposed motion to supplement the administrative record. The Court vacated the existing scheduling order deadlines and directed the parties to submit a joint status report regarding how the case should proceed, including whether the corrective action would address the claims or whether further motions would be filed.

Bid Protest Legal Support

If your company is involved in a federal procurement dispute, our team handles bid protests, procurement challenges, and disputes involving agency evaluation decisions and contract awards. You can Contact us to discuss your situation and learn more about your options.