Kingdomware Technologies, Inc. v. United States (14-916)
argument 14-916Kingdomware Technologies, Inc. v. United States
Supreme Court of the United States
57 min
6 speakers
8 chapters
transcribed 6 days ago
official recording ↗
Transcript
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What is the statutory “rule of two” and how does it apply to VA contracts?
We'll hear argument first this morning in case number fourteen nine sixteen, Kingdomware Technologies versus United States. Mr. Saunders.
Mr Chief Justice, it may please the court. By its plain terms, the two thousand six Veterans Act Requires the VA to consider veterans first under the rule of two before awarding contracts to other suppliers. That mandate, which applies only to the VA and reflects the agency's unique obligation to veterans, contains no exception for the contracts formed when the VA makes awards under the Federal Supply Schedule. And the government's attempt to create such an exception fares no better than its prior attempts to resist the mandate. It's semantic distinction. between contracts and orders conflicts with its own concession that an FSS order is a contract in the ordinary sense.
uh tell us what relief you could get at this point that's consistent with the Tucker Act.
We're seeking a declaratory judgment that with respect to these particular procurements, the uh VA erred in failing to conduct market research at uh Uh to apply the rule of two before going straight to the FSS.
On the ground that this is capable of of repetition yet evasive of review. Is that your your answer to the mootiness?
Uh absolutely. The s same situation has recurred numerous times, even during the course of this litigation. Um Kingdomware continues to be actively competing for these contracts and these contracts are of a short duration.
What was the amount of this contract?
This contract was for a base uh amount of thirty three thousand dollars. Isn't it
strange to get a declaratory judgment that something unlawful occurred in the past. uh but that no other relief is available for this past violation of the law.
Well n no other relief is available solely because of the passage of time it has taken for this case to work its way up to this court. And that's why the doctrine of capable of repetition yet evading review review is recognized. Well once once the legal rights, once the meaning of eight one two seven D is established in this case by that declaratory judgment, then going forward we would expect that the VA will um comply with this court's interpretation of the law. And so it would be tremendous benefit to the veterans community. going forward from that declaration, from that elucidation of the legal rights here.
You did your client um stipulated away the cost that it would have been entitled to after winning before the GAO, correct? But there was relief. Gave it away essentially.
Well the the Tucker Act doesn't allow for the protest costs. And so the the relevant cost that might have been allowed would be bid preparation costs. But the very point of this case is there wasn't an opportunity to bid. This isn't a situation in which the opportunity was put out there and Kingdomware was able to compete for it. Though it was it skipped through the rule of two process required by eight one two seven. Went straight to the federal supply schedule, and the first that Kingdomware ever learned of it was when the announcement went up saying that the contract had been awarded on a sole source basis to someone else under the federal supply schedule. So under the circumstances of this case, where it's about the government going to a procedure it shouldn't be going to first, there's no opportunity to amass those bid protests.
Your
client is still an FSS vendor and is still competing for contact. Contracts that the
Yes and mo I mean my client is listed on the FSS but most importantly for this case is a uh Service disabled, veteran owned small business and continues to be listed in the VA's database, um, which limits the eligibility for the rule of two here.
The government takes the position that if we rule in your favor That means that we're doing away with effectively the FSS. Is that your view?
No, a absolutely not. Um the FSS is still going to apply to a large number of procurements. Congress, when it made this targeted provision mandatory and focused on the VA, Also said in eight one two seven E
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Chapters
8 chapters
1
What is the statutory “rule of two” and how does it apply to VA contracts?
0:00–7:43
2
How does the VA’s veteran‑owned small‑business database affect procurement decisions?
7:43–15:36
3
Why does Kingdomware argue that the Federal Supply Schedule (FSS) orders are not new contracts?
15:36–21:03
4
What are the arguments about “capable of repetition yet evading review” in this case?
21:03–28:14
5
How would applying the rule of two to every VA purchase impact urgent medical needs?
28:14–34:18
6
What is the significance of the three‑percent and higher goals set by Congress?
34:18–40:30
7
How does the VA balance best‑value determinations with veteran‑small‑business preferences?
40:30–51:11
8
What would be the practical consequences if the Court required the VA to use the rule of two for all FSS orders?
51:11–57:44