In MLB Transportation, Inc. v. United States, the Court of Federal Claims dismissed a bid protest challenging the Department of Veterans Affairs (VA) over a procurement set aside for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs). The case involved issues of timeliness, registration with the Center for Verification and Evaluation (CVE), and statutory eligibility under 38 U.S.C. § 8127.
In March 2023, the VA issued a request for quotations (RFQ) for wheelchair and ambulatory transport services in Puerto Rico. The solicitation limited competition to SDVOSBs listed in the Vendor Information Pages (VIP) database maintained by the CVE. Offers were due on April 14, 2023.
MLB Transportation submitted a quote before the deadline but was not listed in the VIP database as of the closing date. Instead, the company applied for verification on April 12, two days before the deadline. The VA awarded the contract to another firm and did not consider MLB’s submission because it failed to meet the registration requirement.
MLB protested the exclusion, arguing that its SDVOSB status was valid and that the verification delay was procedural. It claimed that the VA should have allowed more flexibility or delayed the award decision. The company also asserted that the solicitation’s registration requirement conflicted with statutory provisions.
The government moved to dismiss the protest, contending that MLB lacked standing and that the protest was untimely under Blue & Gold Fleet, L.P. v. United States. Under that precedent, offerors must raise known solicitation defects before the closing date.
The Court of Federal Claims found that MLB lacked standing because it was not an interested party under the law. To have standing, a protestor must show it had a substantial chance of receiving the award. MLB could not demonstrate this, as its offer was ineligible due to its unverified status.
The court further held that any challenge to the solicitation’s SDVOSB registration requirement was untimely. The rule requiring registration in the VIP database was included in the solicitation, and any objection to that requirement had to be raised before bids were due. MLB failed to do so, and the court viewed this failure as a waiver of its right to challenge the terms. The court dismissed the protest for lack of jurisdiction and as untimely.
If your business is pursuing federal contracts under the SDVOSB program, timely CVE registration and awareness of solicitation requirements are essential. Our team at Whitcomb, Selinsky, PC can help assess your eligibility and guide you through registration and compliance for government contracting opportunities.