{ "attribution": { "source": "legal.exploreworldai.com", "canonical": "https://legal.exploreworldai.com/api/public/v1/judgment-text?id=us:uscfc-26-204-2026-07-23", "cite_as": "NovaCopilot, legal.exploreworldai.com (https://legal.exploreworldai.com/api/public/v1/judgment-text?id=us:uscfc-26-204-2026-07-23)", "license": "https://legal.exploreworldai.com/revision", "version": "legal-2026-10-18", "fingerprint": "ewai:us:efda2f", "proof": "sha256:d588d90d6dff95db1e8e0a1527133634b0103ed621af63269bd4de83ed70f181", "jurisdiction": "us", "lang": "en", "publisher": "NovaCopilot by ExploreWorld Legal", "terms": "https://legal.exploreworldai.com/om" }, "brand_source": "Source: NovaCopilot", "item": { "schema_version": "1.0.0", "id": "us:uscfc-26-204-2026-07-23", "jurisdiction": "us", "lang": "en", "brand_source": "Source: NovaCopilot", "brand": { "product": "NovaCopilot", "platform": "ExploreWorldAI", "infrastructure": "ExploreWorld Legal", "infrastructure_url": "legal.exploreworldai.com", "legal_entity": "Valkiv Ventures AB", "permanent_url": "https://legal.exploreworldai.com/novacopilot", "source": "Source: NovaCopilot", "powered_by": "Powered by NovaCopilot", "license": "https://legal.exploreworldai.com/licensvillkor" }, "sections": [ { "title": "In the United States Court of Federal Claims", "paragraphs": [] }, { "title": "FOR PUBLICATION", "paragraphs": [] }, { "title": "No. 26-204C", "paragraphs": [] }, { "title": "(Filed: July 23, 2026)", "paragraphs": [ "para_5", "para_6", "para_7", "para_8", "para_9", "para_10", "para_11", "para_12", "para_13", "para_14", "para_15", "para_16", "para_17", "para_18", "para_19", "para_20", "para_21", "para_22", "para_23", "para_24", "para_25", "para_26", "para_27", "para_28", "para_29", "para_30", "para_31", "para_32", "para_33" ] }, { "title": "Civil Division, U.S. Department of Justice, Washington, DC, for defendant. With her", "paragraphs": [ "para_35" ] }, { "title": "McCarthy, Director, and Frankline E. White, Jr., Assistant Director, Commercial", "paragraphs": [ "para_37" ] }, { "title": "Natica Neely, Trial Attorney, and Kate Gorney, Procurement Counsel, Office of", "paragraphs": [ "para_39", "para_40" ] }, { "title": "Moshe B. Broder (argued), Jenner & Block LLP, Washington, DC, for defendant-", "paragraphs": [ "para_42", "para_43", "para_44", "para_45", "para_46" ] }, { "title": "2", "paragraphs": [] }, { "title": "OPINION AND ORDER", "paragraphs": [ "para_49" ] }, { "title": "Over nine million veterans are enrolled in the United States Department of", "paragraphs": [] }, { "title": "Veterans Affairs’ (VA) health care system, and more than six million veterans receive", "paragraphs": [ "para_52", "para_53", "para_54", "para_55", "para_56", "para_57" ] }, { "title": "This combined bid protest and breach of contract action involves the VA’s efforts to", "paragraphs": [ "para_59", "para_60" ] }, { "title": "28 Trans, LLC, a service-disabled veteran-owned small business, provides", "paragraphs": [ "para_62" ] }, { "title": "San Francisco Health Care System under a five-year contract with the VA.3 Through", "paragraphs": [ "para_64" ] }, { "title": "Health, LLC4 to transport veterans to and from their medical appointments, also in", "paragraphs": [ "para_66" ] }, { "title": "1 TAMAR B. BRESLAUER & MICHELE L. MALLOY, CONG. RSCH. SERV., R48406, CONNECTING VETERANS", "paragraphs": [] }, { "title": "AND VETERANS ORGANIZATIONS TO FEDERAL TRANSPORTATION ASSISTANCE 1 (2026); Veterans Health", "paragraphs": [ "para_69", "para_70", "para_71", "para_72", "para_73", "para_74", "para_75", "para_76", "para_77", "para_78", "para_79", "para_80", "para_81", "para_82", "para_83", "para_84", "para_85", "para_86", "para_87", "para_88", "para_89" ] }, { "title": "3", "paragraphs": [ "para_91", "para_92", "para_93", "para_94", "para_95", "para_96", "para_97" ] }, { "title": "(Count VI); bad faith (Count VII); attorney’s fees (Count VIII); and out-of-scope", "paragraphs": [ "para_99", "para_100" ] }, { "title": "Pending before the Court is defendant’s motion to dismiss Count I of the", "paragraphs": [ "para_102", "para_103" ] }, { "title": "VA’s engagement of Uber Health and its use of the company’s rideshare platform are", "paragraphs": [ "para_105", "para_106", "para_107", "para_108", "para_109" ] }, { "title": "BACKGROUND7", "paragraphs": [] }, { "title": "Title 38, United States Code, Section 111 authorizes the VA Secretary to:", "paragraphs": [ "para_112", "para_113" ] }, { "title": "Department facility or other place in connection with vocational", "paragraphs": [ "para_115", "para_116" ] }, { "title": "38 U.S.C. § 111(a). Section 111A, in turn, sanctions the direct transport of eligible", "paragraphs": [ "para_118", "para_119", "para_120", "para_121", "para_122", "para_123", "para_124", "para_125", "para_126", "para_127", "para_128", "para_129" ] }, { "title": "4", "paragraphs": [ "para_131", "para_132" ] }, { "title": "Veterans Affs., 122 F.4th 1339, 1340–41 (Fed. Cir. 2024) (reviewing VA assistance", "paragraphs": [ "para_134", "para_135", "para_136", "para_137" ] }, { "title": "Through the Veteran Transportation Services program, for example, VA-paid", "paragraphs": [ "para_139" ] }, { "title": "VA-owned (or leased) vehicles at no cost to the patient.9 This program accommodates", "paragraphs": [ "para_141", "para_142", "para_143", "para_144", "para_145" ] }, { "title": "VA’s Volunteer Transportation Network, which is managed by the VA’s Center for", "paragraphs": [ "para_147", "para_148", "para_149", "para_150", "para_151", "para_152", "para_153" ] }, { "title": "VHA.” Under this program, the VA provides financial assistance, typically through", "paragraphs": [ "para_155", "para_156", "para_157" ] }, { "title": "Travel Program payment principles); id. § 70.32(a) (outlining reimbursement and", "paragraphs": [ "para_159", "para_160", "para_161", "para_162", "para_163", "para_164", "para_165", "para_166", "para_167", "para_168", "para_169", "para_170", "para_171" ] }, { "title": "5", "paragraphs": [ "para_173" ] }, { "title": "VA disability rating of at least 30%; treatment for service-connected condition;", "paragraphs": [ "para_175", "para_176" ] }, { "title": "On October 22, 2021, the Veterans Transportation Program partnered with the", "paragraphs": [] }, { "title": "VHA Innovation Ecosystem13 to engage Uber Health in a public-private collaboration", "paragraphs": [ "para_179", "para_180", "para_181", "para_182", "para_183", "para_184", "para_185", "para_186" ] }, { "title": "Uber’s HIPAA-compliant ride-sourcing platform allows clinics and", "paragraphs": [] }, { "title": "VA Medical Centers to book rides directly for patients from a centralized", "paragraphs": [ "para_189", "para_190", "para_191", "para_192" ] }, { "title": "13 According to the VA’s website:", "paragraphs": [] }, { "title": "VHA Innovation Ecosystem (VHA IE) is the catalyst for enabling the discovery and", "paragraphs": [ "para_195", "para_196", "para_197", "para_198", "para_199", "para_200", "para_201", "para_202", "para_203", "para_204", "para_205", "para_206" ] }, { "title": "Services under the Common Carrier Reimbursement within the [VHA].” ECF 17-1 at 6. That", "paragraphs": [ "para_208", "para_209", "para_210", "para_211" ] }, { "title": "6", "paragraphs": [] }, { "title": "VHA-Uber Health Connect (VUHC) Initiative, U.S. DEP’T OF VETERANS AFFS. (last", "paragraphs": [ "para_214", "para_215" ] }, { "title": "The VHA launched the rideshare transportation pilot program for ten VAMCs", "paragraphs": [ "para_217", "para_218", "para_219", "para_220" ] }, { "title": "VA estimates that the program netted nearly $200 million in cost avoidance and", "paragraphs": [ "para_222" ] }, { "title": "(i.e., avoided unnecessary inpatient admissions due to veteran’s inability to secure", "paragraphs": [ "para_224", "para_225" ] }, { "title": "2024, the VA launched an enterprise-wide rollout of the rideshare transportation", "paragraphs": [ "para_227", "para_228" ] }, { "title": "While developing that program, on July 13, 2023, the VA issued a solicitation", "paragraphs": [ "para_230", "para_231", "para_232", "para_233" ] }, { "title": "38 C.F.R. § 70.2. Exempted from this definition are “mode[s] of transportation not", "paragraphs": [ "para_235", "para_236", "para_237", "para_238" ] }, { "title": "These heightened requirements increase the cost of special-mode transportation over", "paragraphs": [ "para_240", "para_241" ] }, { "title": "Program, medical need (e.g., non-ambulatory, requires physical assistance, mental", "paragraphs": [ "para_243", "para_244", "para_245" ] }, { "title": "Integrated Service Networks, U.S. DEP’T OF VETERANS AFFS. (July 15, 2026), available", "paragraphs": [ "para_247", "para_248", "para_249", "para_250", "para_251", "para_252", "para_253" ] }, { "title": "NO. 15-00022-139, VETERANS HEALTH ADMINISTRATION: THE BENEFICIARY TRAVEL PROGRAM, SPECIAL", "paragraphs": [] }, { "title": "7", "paragraphs": [] }, { "title": "The solicitation included the following statements in the General Information", "paragraphs": [ "para_257" ] }, { "title": "The contractor’s responsibility shall cover non-emergent medical", "paragraphs": [ "para_259" ] }, { "title": "The [c]ontractor shall transport ambulatory and non-ambulatory", "paragraphs": [ "para_261", "para_262", "para_263", "para_264", "para_265", "para_266", "para_267", "para_268", "para_269", "para_270", "para_271", "para_272", "para_273", "para_274", "para_275", "para_276", "para_277", "para_278" ] }, { "title": "ECF 1-4; ECF 1-5. The VA awarded a five-year Indefinite Delivery Indefinite", "paragraphs": [] }, { "title": "Quantity (IDIQ) contract to 28 Trans on January 1, 2024.19, 20 The IDIQ guaranteed", "paragraphs": [ "para_281" ] }, { "title": "In February 2024, and between June and August of 2024, 28 Trans reportedly", "paragraphs": [ "para_283" ] }, { "title": "MODE OF TRANSPORTATION ELIGIBILITY AND PAYMENT CONTROLS 4 (2018), available at", "paragraphs": [ "para_285", "para_286", "para_287", "para_288", "para_289", "para_290" ] }, { "title": "20 The VA contemporaneously awarded similar contracts for other VISNs to amicus curiae", "paragraphs": [ "para_292", "para_293", "para_294" ] }, { "title": "8", "paragraphs": [ "para_296" ] }, { "title": "28 Trans attributes this drastic reduction to the VA’s April 2023 expansion and", "paragraphs": [ "para_298" ] }, { "title": "28 Trans further alleges that the VA began assigning the more profitable and", "paragraphs": [ "para_300", "para_301" ] }, { "title": "On June 24, 2025, 28 Trans submitted a certified request for equitable", "paragraphs": [ "para_303", "para_304", "para_305", "para_306", "para_307" ] }, { "title": "ECF 17-3 at 2. 28 Trans submitted a second claim to the contracting officer on", "paragraphs": [] }, { "title": "July 18, 2025, seeking an additional $300,000, citing an out-of-scope change to the", "paragraphs": [ "para_310", "para_311" ] }, { "title": "DISCUSSION", "paragraphs": [] }, { "title": "I. Legal Standard", "paragraphs": [] }, { "title": "This Court’s statutorily prescribed jurisdiction to adjudicate claims and grant", "paragraphs": [ "para_315", "para_316" ] }, { "title": "445 U.S. 535, 538 (1980)). Accordingly, when the Court’s authority to entertain a", "paragraphs": [ "para_318", "para_319", "para_320", "para_321" ] }, { "title": "1969)). In evaluating the jurisdictional propriety of a claim, the Court accepts all", "paragraphs": [ "para_323", "para_324", "para_325", "para_326", "para_327", "para_328" ] }, { "title": "II. Bid Protest Jurisdiction", "paragraphs": [ "para_330", "para_331", "para_332", "para_333", "para_334" ] }, { "title": "9", "paragraphs": [ "para_336", "para_337", "para_338" ] }, { "title": "28 U.S.C. § 1491(b)(1) (emphasis added). That provision gives the Court “‘broad’", "paragraphs": [ "para_340", "para_341", "para_342" ] }, { "title": "Raytheon Co. v. United States, 175 Fed. Cl. 281, 288 (2025) (quoting Sys. Application", "paragraphs": [ "para_344", "para_345", "para_346", "para_347", "para_348" ] }, { "title": "1245 (Fed. Cir. 2010))). Accordingly, if the challenged arrangement between the VA", "paragraphs": [ "para_350", "para_351" ] }, { "title": "While “[t]he Tucker Act does not define the terms ‘procurement’ or ‘proposed", "paragraphs": [ "para_353" ] }, { "title": "(Fed. Cir. 2008), 41 U.S.C. § 111 defines “procurement” to encompass “all stages of", "paragraphs": [ "para_355", "para_356", "para_357", "para_358", "para_359", "para_360", "para_361", "para_362" ] }, { "title": "The meaning of “procurement” is further clarified by the Federal Grant and", "paragraphs": [] }, { "title": "Cooperative Agreement Act (FGCAA), Pub. L. No. 95-224, 92 Stat. 3 (1978) (codified", "paragraphs": [ "para_365", "para_366", "para_367" ] }, { "title": "Hymas, 810 F.3d at 1327–30. The “principal purpose” of procurement contracts is", "paragraphs": [ "para_369" ] }, { "title": "Government . . . .” 31 U.S.C. § 6303(1) (emphasis added). In contrast, the “principal", "paragraphs": [ "para_371", "para_372" ] }, { "title": "(grant agreements), 6305 (cooperative agreements).21", "paragraphs": [ "para_374", "para_375" ] }, { "title": "10", "paragraphs": [] }, { "title": "The government and Uber Health maintain that the challenged arrangement", "paragraphs": [ "para_378", "para_379", "para_380", "para_381" ] }, { "title": "Connect Initiative is “to offer rideshare as a supplemental transportation option for", "paragraphs": [ "para_383" ] }, { "title": "Found., Inc. v. United States, 167 Fed. Cl. 714, 718 (2023) (“[T]he [Supportive Services", "paragraphs": [ "para_385", "para_386", "para_387", "para_388" ] }, { "title": "Medical Applications of Aquadilla, Inc. v. United States, 119 Fed. Cl. 546, 566–67", "paragraphs": [] }, { "title": "(2014) (“[T]he dialysis services authorized by the VA . . . were for the direct benefit", "paragraphs": [ "para_391" ] }, { "title": "That the VA realizes significant cost avoidance and cost savings as a", "paragraphs": [ "para_393", "para_394", "para_395", "para_396", "para_397" ] }, { "title": "Nor does the fact that VAMC staff, rather than the veterans themselves, log into the", "paragraphs": [ "para_399", "para_400" ] }, { "title": "104 Fed. Cl. 575, 580 (2012) (explaining that an agency acquires a direct benefit when", "paragraphs": [ "para_402", "para_403" ] }, { "title": "1065 (8th Cir. 2020) (“It makes no difference . . . that medical providers, rather than", "paragraphs": [ "para_405", "para_406", "para_407", "para_408", "para_409" ] }, { "title": "In sum, 28 Trans’ challenge to the VA’s collaboration with Uber Health, under", "paragraphs": [ "para_411", "para_412", "para_413", "para_414", "para_415", "para_416", "para_417", "para_418" ] }, { "title": "11", "paragraphs": [] }, { "title": "28 Trans can prevail on any of its other remaining charges, the Court leaves for", "paragraphs": [ "para_421" ] }, { "title": "CONCLUSION", "paragraphs": [] }, { "title": "For the foregoing reasons, defendant’s motion to dismiss Count I of plaintiff’s", "paragraphs": [ "para_424", "para_425", "para_426", "para_427", "para_428", "para_429", "para_430" ] }, { "title": "Armando O. Bonilla", "paragraphs": [] }, { "title": "Judge", "paragraphs": [ "para_433", "para_434", "para_435", "para_436", "para_437", "para_438" ] } ], "paragraphs": [ { "text": "In the United States Court of Federal Claims", "paragraph_id": "para_1" }, { "text": "FOR PUBLICATION", "paragraph_id": "para_2" }, { "text": "No. 26-204C", "paragraph_id": "para_3" }, { "text": "(Filed: July 23, 2026)", "paragraph_id": "para_4" }, { "text": "28 TRANS, LLC,", "paragraph_id": "para_5" }, { "text": "Plaintiff,", "paragraph_id": "para_6" }, { "text": "v.", "paragraph_id": "para_7" }, { "text": "UNITED STATES,", "paragraph_id": "para_8" }, { "text": "Defendant,", "paragraph_id": "para_9" }, { "text": "and", "paragraph_id": "para_10" }, { "text": "UBER TECHNOLOGIES, INC.,", "paragraph_id": "para_11" }, { "text": "Defendant-Intervenor.", "paragraph_id": "para_12" }, { "text": ")", "paragraph_id": "para_13" }, { "text": ")", "paragraph_id": "para_14" }, { "text": ")", "paragraph_id": "para_15" }, { "text": ")", "paragraph_id": "para_16" }, { "text": ")", "paragraph_id": "para_17" }, { "text": ")", "paragraph_id": "para_18" }, { "text": ")", "paragraph_id": "para_19" }, { "text": ")", "paragraph_id": "para_20" }, { "text": ")", "paragraph_id": "para_21" }, { "text": ")", "paragraph_id": "para_22" }, { "text": ")", "paragraph_id": "para_23" }, { "text": ")", "paragraph_id": "para_24" }, { "text": ")", "paragraph_id": "para_25" }, { "text": ")", "paragraph_id": "para_26" }, { "text": ")", "paragraph_id": "para_27" }, { "text": ")", "paragraph_id": "para_28" }, { "text": ")", "paragraph_id": "para_29" }, { "text": "J. Larry Stine (argued), Wimberly, Lawson, Steckel, Schneider & Stine, PC, Atlanta,", "paragraph_id": "para_30" }, { "text": "GA, for plaintiff. With him on the brief was Thomas L. Walker, Wimberly, Lawson,", "paragraph_id": "para_31" }, { "text": "Steckel, Schneider & Stine, PC, Atlanta, GA.", "paragraph_id": "para_32" }, { "text": "Kristin E. Olson (argued), Trial Attorney, Commercial Litigation Branch,", "paragraph_id": "para_33" }, { "text": "Civil Division, U.S. Department of Justice, Washington, DC, for defendant. With her", "paragraph_id": "para_34" }, { "text": "on the briefs were Brett A. Shumate, Assistant Attorney General; and Patricia M.", "paragraph_id": "para_35" }, { "text": "McCarthy, Director, and Frankline E. White, Jr., Assistant Director, Commercial", "paragraph_id": "para_36" }, { "text": "Litigation Branch, Civil Division, U.S. Department of Justice, Washington, DC.", "paragraph_id": "para_37" }, { "text": "Natica Neely, Trial Attorney, and Kate Gorney, Procurement Counsel, Office of", "paragraph_id": "para_38" }, { "text": "General Counsel–District Contract Law Group, U.S. Department of Veterans Affairs,", "paragraph_id": "para_39" }, { "text": "Washington, DC, Of Counsel.", "paragraph_id": "para_40" }, { "text": "Moshe B. Broder (argued), Jenner & Block LLP, Washington, DC, for defendant-", "paragraph_id": "para_41" }, { "text": "intervenor. With him on the briefs were David Robbins, Elizabeth M.D. Pullin,", "paragraph_id": "para_42" }, { "text": "Jennifer Eve Retener (argued), and Megan C. Bodenhamer, Jenner & Block LLP,", "paragraph_id": "para_43" }, { "text": "Washington, DC.", "paragraph_id": "para_44" }, { "text": "William M. Weisberg (argued), Law Offices of William Weisberg PLLC, McLean, VA,", "paragraph_id": "para_45" }, { "text": "for amici curiae Navarre Corporation and GovTranz LLC.", "paragraph_id": "para_46" }, { "text": "2", "paragraph_id": "para_47" }, { "text": "OPINION AND ORDER", "paragraph_id": "para_48" }, { "text": "BONILLA, Judge.", "paragraph_id": "para_49" }, { "text": "Over nine million veterans are enrolled in the United States Department of", "paragraph_id": "para_50" }, { "text": "Veterans Affairs’ (VA) health care system, and more than six million veterans receive", "paragraph_id": "para_51" }, { "text": "health care services through the VA Veterans Health Administration (VHA)—a", "paragraph_id": "para_52" }, { "text": "nationwide integrated network of medical centers and outpatient clinics.1 For many", "paragraph_id": "para_53" }, { "text": "veterans, transportation to and from VHA medical appointments “can be a barrier to", "paragraph_id": "para_54" }, { "text": "care for a variety of reasons, including rurality, lack of access to a vehicle, condition-", "paragraph_id": "para_55" }, { "text": "specific challenges, and the cost of travel. To help veterans overcome these barriers,", "paragraph_id": "para_56" }, { "text": "there are a number of federally supported VA transportation assistance programs.”2", "paragraph_id": "para_57" }, { "text": "This combined bid protest and breach of contract action involves the VA’s efforts to", "paragraph_id": "para_58" }, { "text": "provide eligible veterans with a patchwork of transportation options under those", "paragraph_id": "para_59" }, { "text": "programs.", "paragraph_id": "para_60" }, { "text": "28 Trans, LLC, a service-disabled veteran-owned small business, provides", "paragraph_id": "para_61" }, { "text": "nonemergency special-mode ground transportation services to patients of the VA", "paragraph_id": "para_62" }, { "text": "San Francisco Health Care System under a five-year contract with the VA.3 Through", "paragraph_id": "para_63" }, { "text": "this action, 28 Trans challenges the VA’s public-private collaboration with Uber", "paragraph_id": "para_64" }, { "text": "Health, LLC4 to transport veterans to and from their medical appointments, also in", "paragraph_id": "para_65" }, { "text": "the San Francisco area.5 Specifically, 28 Trans charges that (1) the VA violated a", "paragraph_id": "para_66" }, { "text": "1 TAMAR B. BRESLAUER & MICHELE L. MALLOY, CONG. RSCH. SERV., R48406, CONNECTING VETERANS", "paragraph_id": "para_67" }, { "text": "AND VETERANS ORGANIZATIONS TO FEDERAL TRANSPORTATION ASSISTANCE 1 (2026); Veterans Health", "paragraph_id": "para_68" }, { "text": "Administration, U.S. DEP’T OF VETERANS AFFS. (July 6, 2026), available at https://perma.cc/QM75-", "paragraph_id": "para_69" }, { "text": "HQM3.", "paragraph_id": "para_70" }, { "text": "2 BRESLAUER & MALLOY, supra note 1, at 1.", "paragraph_id": "para_71" }, { "text": "3 Certain documents in the record refer to the “San Francisco Veteran Affairs Health Care Center", "paragraph_id": "para_72" }, { "text": "(SFVAHCS),” the “San Francisco Veteran Affairs Health Care System (SFVAHCS),” the San Francisco", "paragraph_id": "para_73" }, { "text": "VA Medical Center (SF[-]VAMC),” and, as noted above, the “VA San Francisco Health Care System", "paragraph_id": "para_74" }, { "text": "(VASFHCS).” Compare, e.g., ECF 1-3 at 1, with ECF 1-4 at 1, and ECF 17-2 at 2, and ECF 17-1 at 5.", "paragraph_id": "para_75" }, { "text": "The address listed on the performance work statement for 28 Trans’ contract, however, refers only to", "paragraph_id": "para_76" }, { "text": "the SFVAHCS. ECF 1-4 at 1. For clarity, the Court discusses them collectively as the “[SF-VAMC]", "paragraph_id": "para_77" }, { "text": "and its associated healthcare facilities.” See ECF 17-2 at 2.", "paragraph_id": "para_78" }, { "text": "4 Uber Health is a wholly owned, healthcare-focused subsidiary of Uber Technologies, Inc.", "paragraph_id": "para_79" }, { "text": "5 In addition to Uber Health, 28 Trans’ complaint referenced the VA’s engagement of transportation", "paragraph_id": "para_80" }, { "text": "services provided by non-party Onward Health, Inc. In its response brief, 28 Trans failed to respond", "paragraph_id": "para_81" }, { "text": "to the government’s representation that the VA’s relationship with Onward Health predates the", "paragraph_id": "para_82" }, { "text": "contract awarded to 28 Trans. The Court raised this issue during oral argument. Because 28 Trans", "paragraph_id": "para_83" }, { "text": "failed to respond to the government’s representation about the timing of the VA’s relationship with", "paragraph_id": "para_84" }, { "text": "Onward Health, the Court determines 28 Trans’ bid protest arguments specific to Onward Health are", "paragraph_id": "para_85" }, { "text": "waived. See SmithKline Beecham Corp. v. Apotex Corp., 439 F.3d 1312, 1319 (Fed. Cir. 2006) (citing", "paragraph_id": "para_86" }, { "text": "Cross Med. Prods., Inc. v. Medtronic Sofamor Danek, Inc., 424 F.3d 1293, 1320–21 n.3 (Fed. Cir. 2005))", "paragraph_id": "para_87" }, { "text": "(explaining that “arguments not raised in the opening brief are waived”); Novosteel SA v. U.S.,", "paragraph_id": "para_88" }, { "text": "Bethlehem Steel Corp., 284 F.3d 1261, 1274 (Fed. Cir. 2002) (clarifying that “a party does not waive an", "paragraph_id": "para_89" }, { "text": "3", "paragraph_id": "para_90" }, { "text": "variety of federal procurement laws by de facto awarding Uber Health a series of sole", "paragraph_id": "para_91" }, { "text": "source contracts outside of legal procurement avenues, and (2) in doing so, the VA", "paragraph_id": "para_92" }, { "text": "breached its contract with 28 Trans by, among other things, taking rides that should", "paragraph_id": "para_93" }, { "text": "have been assigned to 28 Trans and booking them with Uber Health instead. The", "paragraph_id": "para_94" }, { "text": "nine-count complaint pleads: bid protest (Count I); equitable adjustment (Count II);", "paragraph_id": "para_95" }, { "text": "breach of contract (Count III); breach of the implied covenant of good faith and fair", "paragraph_id": "para_96" }, { "text": "dealing (Count IV); negligence and fraud (Count V); fraudulent inducement", "paragraph_id": "para_97" }, { "text": "(Count VI); bad faith (Count VII); attorney’s fees (Count VIII); and out-of-scope", "paragraph_id": "para_98" }, { "text": "change (Count IX). 28 Trans seeks declaratory and injunctive relief as well as over", "paragraph_id": "para_99" }, { "text": "$1.1 million in damages and attorney’s fees.6", "paragraph_id": "para_100" }, { "text": "Pending before the Court is defendant’s motion to dismiss Count I of the", "paragraph_id": "para_101" }, { "text": "complaint—pled as a bid protest—pursuant to Rules 12(b)(1) and 12(b)(6) of the Rules", "paragraph_id": "para_102" }, { "text": "of the United States Court of Federal Claims (RCFC). The government argues the", "paragraph_id": "para_103" }, { "text": "VA’s engagement of Uber Health and its use of the company’s rideshare platform are", "paragraph_id": "para_104" }, { "text": "not procurements or proposed procurements within this Court’s bid protest", "paragraph_id": "para_105" }, { "text": "jurisdiction and, regardless, 28 Trans lacks Article III and Tucker Act standing to", "paragraph_id": "para_106" }, { "text": "challenge the VA’s collaboration with Uber Health. The Court heard oral argument", "paragraph_id": "para_107" }, { "text": "on July 20, 2026. For the reasons set forth below, defendant’s partial motion to", "paragraph_id": "para_108" }, { "text": "dismiss is granted.", "paragraph_id": "para_109" }, { "text": "BACKGROUND7", "paragraph_id": "para_110" }, { "text": "Title 38, United States Code, Section 111 authorizes the VA Secretary to:", "paragraph_id": "para_111" }, { "text": "pay the actual necessary expense of travel . . . , or in lieu thereof an", "paragraph_id": "para_112" }, { "text": "allowance based upon mileage . . . , of any person to or from a", "paragraph_id": "para_113" }, { "text": "Department facility or other place in connection with vocational", "paragraph_id": "para_114" }, { "text": "rehabilitation, counseling required by the Secretary . . . , or for the", "paragraph_id": "para_115" }, { "text": "purpose of examination, treatment, or care.", "paragraph_id": "para_116" }, { "text": "38 U.S.C. § 111(a). Section 111A, in turn, sanctions the direct transport of eligible", "paragraph_id": "para_117" }, { "text": "veterans by the VA and third-party volunteer organizations and drivers. Id.", "paragraph_id": "para_118" }, { "text": "§ 111A(a)(1), (b)(1). Pursuant to these statutes, the VHA developed a series of", "paragraph_id": "para_119" }, { "text": "argument based on what appears in its pleading; a party waives arguments based on what appears in", "paragraph_id": "para_120" }, { "text": "its brief”).", "paragraph_id": "para_121" }, { "text": "6 During the initial scheduling conference conducted on February 11, 2026, the Court denied 28 Trans’", "paragraph_id": "para_122" }, { "text": "motion for a preliminary injunction without prejudice.", "paragraph_id": "para_123" }, { "text": "7 In recounting the background, the Court relies on facts drawn from documents referenced in and", "paragraph_id": "para_124" }, { "text": "appended to the complaint, documents cited in and appended to the parties’ briefs, and publicly", "paragraph_id": "para_125" }, { "text": "available information. See Bitscopic, Inc. v. United States, 166 Fed. Cl. 677, 696 (2023) (in assessing", "paragraph_id": "para_126" }, { "text": "an RCFC 12(b)(1) motion to dismiss, “[t]he court is not limited to the pleadings to assure itself of its", "paragraph_id": "para_127" }, { "text": "jurisdiction; it may ‘inquire into jurisdictional facts to confirm jurisdiction.” (quoting Rocovich v.", "paragraph_id": "para_128" }, { "text": "United States, 933 F.2d 991, 993 (Fed. Cir. 1991))).", "paragraph_id": "para_129" }, { "text": "4", "paragraph_id": "para_130" }, { "text": "transportation assistance programs that provide direct transport and travel", "paragraph_id": "para_131" }, { "text": "reimbursement to eligible veterans. See, e.g., Metro. Area EMS Auth. v. Sec’y of", "paragraph_id": "para_132" }, { "text": "Veterans Affs., 122 F.4th 1339, 1340–41 (Fed. Cir. 2024) (reviewing VA assistance", "paragraph_id": "para_133" }, { "text": "program providing “noncontract ground and air ambulance transports” and noting", "paragraph_id": "para_134" }, { "text": "that “[38 U.S.C.] § 111 . . . gives the Secretary discretionary authority to pay for", "paragraph_id": "para_135" }, { "text": "certain travel expenses incurred by eligible beneficiaries for medical purposes like", "paragraph_id": "para_136" }, { "text": "examination, treatment, or care”).8", "paragraph_id": "para_137" }, { "text": "Through the Veteran Transportation Services program, for example, VA-paid", "paragraph_id": "para_138" }, { "text": "drivers transport eligible veterans to and from their medical appointments in", "paragraph_id": "para_139" }, { "text": "VA-owned (or leased) vehicles at no cost to the patient.9 This program accommodates", "paragraph_id": "para_140" }, { "text": "both ambulatory and non-ambulatory patients, and the fleet of vehicles includes", "paragraph_id": "para_141" }, { "text": "wheelchair vans and ambulances. To request this service, patients can access the", "paragraph_id": "para_142" }, { "text": "online portal (www.vetride.va.gov), download the VetRide Passenger mobile app, or", "paragraph_id": "para_143" }, { "text": "call their VA medical facility’s transportation representative.10 Eligible veterans can", "paragraph_id": "para_144" }, { "text": "also request free rides from accredited Veterans Service Organizations through the", "paragraph_id": "para_145" }, { "text": "VA’s Volunteer Transportation Network, which is managed by the VA’s Center for", "paragraph_id": "para_146" }, { "text": "Development and Civic Engagement.11 This program is limited to ambulant patients,", "paragraph_id": "para_147" }, { "text": "who are “able to get in and out of the vehicle without the driver’s help.”12", "paragraph_id": "para_148" }, { "text": "Another transportation assistance program, the Beneficiary Travel Program,", "paragraph_id": "para_149" }, { "text": "allows the VA to pay for or reimburse eligible veterans for rides to and from medical", "paragraph_id": "para_150" }, { "text": "appointments. It is authorized by 38 C.F.R. § 70.1(a), which “provides a mechanism", "paragraph_id": "para_151" }, { "text": "under 38 U.S.C. [§] 111 for the [VHA] to make payments for travel expenses incurred", "paragraph_id": "para_152" }, { "text": "in the United States to help veterans and other persons obtain care or services from", "paragraph_id": "para_153" }, { "text": "VHA.” Under this program, the VA provides financial assistance, typically through", "paragraph_id": "para_154" }, { "text": "reimbursement, to patients who make their own travel arrangements using privately", "paragraph_id": "para_155" }, { "text": "owned vehicles, common carriers (e.g., airplane, bus, taxi, train), or medically", "paragraph_id": "para_156" }, { "text": "required special modes of transportation. 38 C.F.R. §§ 70.30(a)(1), (a)(4) (Beneficiary", "paragraph_id": "para_157" }, { "text": "Travel Program payment principles); id. § 70.32(a) (outlining reimbursement and", "paragraph_id": "para_158" }, { "text": "prior payment exceptions); id. § 70.32(b) (“Payment under this part will be made to", "paragraph_id": "para_159" }, { "text": "the beneficiary, except that VA may make a beneficiary travel payment under this", "paragraph_id": "para_160" }, { "text": "part to a person or organization other than the beneficiary upon satisfactory evidence", "paragraph_id": "para_161" }, { "text": "that the person or organization actually provided or paid for the travel.”). Program", "paragraph_id": "para_162" }, { "text": "8 See also What are my transportation options for VA health appointments?, U.S. DEP’T OF VETERANS", "paragraph_id": "para_163" }, { "text": "AFFS. (Apr. 28, 2026), available at https://perma.cc/LUG2-Y5UU.", "paragraph_id": "para_164" }, { "text": "9 The VA’s authority to provide direct transportation services under § 111A(a)(1) is slated to sunset on", "paragraph_id": "para_165" }, { "text": "September 30, 2026. 38 U.S.C. § 111A(a)(2).", "paragraph_id": "para_166" }, { "text": "10 See How to request rides to VA health appointments, U.S. DEP’T OF VETERANS AFFS. (June 25, 2026),", "paragraph_id": "para_167" }, { "text": "available at https://perma.cc/Z72B-2L4G.", "paragraph_id": "para_168" }, { "text": "11 See Accredited [Veterans Service Organizations] Search Results, U.S. DEP’T OF VETERANS AFFS.", "paragraph_id": "para_169" }, { "text": "available at https://perma.cc/XS2C-J7HB.", "paragraph_id": "para_170" }, { "text": "12 See U.S. DEP’T OF VETERANS AFFS., supra note 10.", "paragraph_id": "para_171" }, { "text": "5", "paragraph_id": "para_172" }, { "text": "eligibility requires that a veteran meet one or more of the following conditions:", "paragraph_id": "para_173" }, { "text": "VA disability rating of at least 30%; treatment for service-connected condition;", "paragraph_id": "para_174" }, { "text": "patient is a VA pensioner; demonstrated financial need; or medical appointment", "paragraph_id": "para_175" }, { "text": "“for a scheduled compensation and pension examination.” Id. § 70.10.", "paragraph_id": "para_176" }, { "text": "On October 22, 2021, the Veterans Transportation Program partnered with the", "paragraph_id": "para_177" }, { "text": "VHA Innovation Ecosystem13 to engage Uber Health in a public-private collaboration", "paragraph_id": "para_178" }, { "text": "under a Cooperative Research and Development Agreement (CRADA) “to offer", "paragraph_id": "para_179" }, { "text": "rideshare as a supplemental transportation option for Veterans to get to and from", "paragraph_id": "para_180" }, { "text": "their medical appointments.”14, 15 ECF 1-11 at 3. Touted as “the first collaboration", "paragraph_id": "para_181" }, { "text": "of its kind where Uber Health’s [HIPAA]-compliant platform was integrated into a", "paragraph_id": "para_182" }, { "text": "healthcare system,”16 the stated goals for the VHA–Uber Health Connect Initiative", "paragraph_id": "para_183" }, { "text": "were to “reduce no-shows/missed appointments,” “improve the veteran experience,”", "paragraph_id": "para_184" }, { "text": "and “achieve cost savings for VA Medical Centers.” Id. Among the unique features", "paragraph_id": "para_185" }, { "text": "of this program:", "paragraph_id": "para_186" }, { "text": "Uber’s HIPAA-compliant ride-sourcing platform allows clinics and", "paragraph_id": "para_187" }, { "text": "VA Medical Centers to book rides directly for patients from a centralized", "paragraph_id": "para_188" }, { "text": "dashboard. Patients can track the ride via text message or phone call,", "paragraph_id": "para_189" }, { "text": "and the transportation is reimbursed by the . . . VA Medical Center . . .", "paragraph_id": "para_190" }, { "text": "directly, so the Veteran does not have to [pay out of pocket,] submit a", "paragraph_id": "para_191" }, { "text": "claim separately[, and await reimbursement].", "paragraph_id": "para_192" }, { "text": "13 According to the VA’s website:", "paragraph_id": "para_193" }, { "text": "VHA Innovation Ecosystem (VHA IE) is the catalyst for enabling the discovery and", "paragraph_id": "para_194" }, { "text": "spread of mission-driven health care innovation that exceeds expectations, restores", "paragraph_id": "para_195" }, { "text": "hope, and builds trust within the Veteran community. VHA IE leverages the collective", "paragraph_id": "para_196" }, { "text": "power of innovation champions from across VA, academia, non-profit and industry to", "paragraph_id": "para_197" }, { "text": "operationalize innovation in the Nation’s largest integrated health care system.", "paragraph_id": "para_198" }, { "text": "See Changing Lives, Saving Lives: Fostering the Discovery and Spread of Innovative Veteran Health", "paragraph_id": "para_199" }, { "text": "Care, U.S. DEP’T OF VETERANS AFFS., available at https://perma.cc/LSV7-794P.", "paragraph_id": "para_200" }, { "text": "14 A CRADA is “any agreement between one or more Federal laboratories and one or more non-Federal", "paragraph_id": "para_201" }, { "text": "parties” with the primary goal of “conduct[ing] . . . specified research or development efforts which are", "paragraph_id": "para_202" }, { "text": "consistent with the missions of the laboratory . . . .” 15 U.S.C. § 3710a(d)(1).", "paragraph_id": "para_203" }, { "text": "15 The VA’s interest in employing ridesharing as an option under the Beneficiary Travel Program", "paragraph_id": "para_204" }, { "text": "apparently dates back to August 30, 2016, when the then-Acting Deputy Under Secretary for Health", "paragraph_id": "para_205" }, { "text": "for Operations and Management reportedly penned a memorandum titled “Use of Ride Sharing", "paragraph_id": "para_206" }, { "text": "Services under the Common Carrier Reimbursement within the [VHA].” ECF 17-1 at 6. That", "paragraph_id": "para_207" }, { "text": "memorandum is not in the record presented, and the Court was not able to locate a public copy.", "paragraph_id": "para_208" }, { "text": "16 “HIPAA” refers to the Health Insurance Portability and Accountability Act, Pub. L. No. 104-191,", "paragraph_id": "para_209" }, { "text": "110 Stat. 1936 (codified as amended in scattered sections of 42 U.S.C.), enacted to protect patient", "paragraph_id": "para_210" }, { "text": "privacy by safeguarding certain types of health information. See, e.g., 42 U.S.C. § 1320a-7c(a)(3)(B)(ii).", "paragraph_id": "para_211" }, { "text": "6", "paragraph_id": "para_212" }, { "text": "VHA-Uber Health Connect (VUHC) Initiative, U.S. DEP’T OF VETERANS AFFS. (last", "paragraph_id": "para_213" }, { "text": "updated Aug. 1, 2024), available at https://perma.cc/W7SZ-ZSCA; accord ECF 1-11", "paragraph_id": "para_214" }, { "text": "at 9.", "paragraph_id": "para_215" }, { "text": "The VHA launched the rideshare transportation pilot program for ten VAMCs", "paragraph_id": "para_216" }, { "text": "across two Veterans Integrated Service Networks (VISN) in January 2022, expanding", "paragraph_id": "para_217" }, { "text": "to sixty-eight VAMCs across eleven VISNs—including the SF-VAMC—the following", "paragraph_id": "para_218" }, { "text": "year.17 Between January 2022 and March 2024, the program reportedly provided", "paragraph_id": "para_219" }, { "text": "over 263,000 rides to more than 38,000 patients at a total cost of $7.9 million. The", "paragraph_id": "para_220" }, { "text": "VA estimates that the program netted nearly $200 million in cost avoidance and", "paragraph_id": "para_221" }, { "text": "cost savings, attributed to “missed appointments avoided” and “bed days saved”", "paragraph_id": "para_222" }, { "text": "(i.e., avoided unnecessary inpatient admissions due to veteran’s inability to secure", "paragraph_id": "para_223" }, { "text": "transportation for outpatient treatments). ECF 1-11 at 8. Citing the success of the", "paragraph_id": "para_224" }, { "text": "VHA–Uber Health Connect Initiative, after the CRADA expired on February 29,", "paragraph_id": "para_225" }, { "text": "2024, the VA launched an enterprise-wide rollout of the rideshare transportation", "paragraph_id": "para_226" }, { "text": "program in May 2024. Since then, the VA reportedly added Lyft, Inc. as a rideshare", "paragraph_id": "para_227" }, { "text": "program option.", "paragraph_id": "para_228" }, { "text": "While developing that program, on July 13, 2023, the VA issued a solicitation", "paragraph_id": "para_229" }, { "text": "to procure nonemergency special-mode ground transportation services for patients of", "paragraph_id": "para_230" }, { "text": "the SF-VAMC and associated healthcare facilities. Special mode of transportation", "paragraph_id": "para_231" }, { "text": "vehicles include “an ambulance, ambulette, air ambulance, wheelchair van, or other", "paragraph_id": "para_232" }, { "text": "mode of transportation specially designed to transport disabled persons . . . .”", "paragraph_id": "para_233" }, { "text": "38 C.F.R. § 70.2. Exempted from this definition are “mode[s] of transportation not", "paragraph_id": "para_234" }, { "text": "specifically designed to transport disabled persons, such as a bus, subway, taxi, train,", "paragraph_id": "para_235" }, { "text": "or airplane[,]” as well as “modified, privately-owned vehicle[s], with special adaptive", "paragraph_id": "para_236" }, { "text": "equipment and/or capable of transporting disabled persons . . . .” Id. Special-mode", "paragraph_id": "para_237" }, { "text": "transporters must be trained to assist non-ambulatory patients with disabilities.", "paragraph_id": "para_238" }, { "text": "These heightened requirements increase the cost of special-mode transportation over", "paragraph_id": "para_239" }, { "text": "comparable common carriers. Eligibility requirements for special mode of", "paragraph_id": "para_240" }, { "text": "transportation reimbursement include eligibility under the Beneficiary Travel", "paragraph_id": "para_241" }, { "text": "Program, medical need (e.g., non-ambulatory, requires physical assistance, mental", "paragraph_id": "para_242" }, { "text": "health concerns), medically required travel, financial need, and either VHA", "paragraph_id": "para_243" }, { "text": "pre-approval or medical emergency. Id. § 70.4(d).18", "paragraph_id": "para_244" }, { "text": "17 There are eighteen regional VISNs numbered 01, 02, 04–10, 12, 15–17, 19–23. See Veterans", "paragraph_id": "para_245" }, { "text": "Integrated Service Networks, U.S. DEP’T OF VETERANS AFFS. (July 15, 2026), available", "paragraph_id": "para_246" }, { "text": "at https://perma.cc/KZM6-SJZZ (click “VISN List” dropdown). “Phase 1 of the [VHA-Uber Health", "paragraph_id": "para_247" }, { "text": "Connect] Initiative launched in VISNs 09 and 15. The pilot was expanded into Phase 2 in April 2023", "paragraph_id": "para_248" }, { "text": "to 9 new VISNs – 02, 04, 07, 08, 16, 17, 20, 21, and 22, at 58 new VAMCs.” ECF 1-11 at 6. VISN 21", "paragraph_id": "para_249" }, { "text": "serves veterans in northern California and includes the SF-VAMC and affiliated medical facilities. Id.", "paragraph_id": "para_250" }, { "text": "18 In 2018, the VA Office of Inspector General conducted an audit and determined that special mode", "paragraph_id": "para_251" }, { "text": "of transportation services were frequently “improperly authorized” because VAMC staff did not always", "paragraph_id": "para_252" }, { "text": "adhere to the eligibility requirements. DEP’T OF VETERANS AFFS. OFF. OF INSPECTOR GEN., REPORT", "paragraph_id": "para_253" }, { "text": "NO. 15-00022-139, VETERANS HEALTH ADMINISTRATION: THE BENEFICIARY TRAVEL PROGRAM, SPECIAL", "paragraph_id": "para_254" }, { "text": "7", "paragraph_id": "para_255" }, { "text": "The solicitation included the following statements in the General Information", "paragraph_id": "para_256" }, { "text": "and Scope of Work section of the performance work statement:", "paragraph_id": "para_257" }, { "text": "The contractor’s responsibility shall cover non-emergent medical", "paragraph_id": "para_258" }, { "text": "transportation services with VA San Francisco Health Care System.", "paragraph_id": "para_259" }, { "text": "The [c]ontractor shall transport ambulatory and non-ambulatory", "paragraph_id": "para_260" }, { "text": "beneficiaries on gurneys, stair chairs, litters, wheelchairs, secure car", "paragraph_id": "para_261" }, { "text": "w/attendant, alternate safe beneficiary handling equipment, and/or Geri", "paragraph_id": "para_262" }, { "text": "chairs to and from and vice-versa the [SF-VAMC and associated", "paragraph_id": "para_263" }, { "text": "healthcare facilities], Veterans’ residences, community nursing homes,", "paragraph_id": "para_264" }, { "text": "or any other VA-authorized care facilities including the extended care", "paragraph_id": "para_265" }, { "text": "facilities and the nine outlying community-based outpatient clinics . . . ,", "paragraph_id": "para_266" }, { "text": "365 days a year, 24 hours a day to include Federal Holidays.", "paragraph_id": "para_267" }, { "text": ". . . . Approximately 90% of transports will be to or from the", "paragraph_id": "para_268" }, { "text": "SF[-VAMC].", "paragraph_id": "para_269" }, { "text": ". . . .", "paragraph_id": "para_270" }, { "text": "[] Historically, the SF[-VAMC] averages 975 round trips per month to", "paragraph_id": "para_271" }, { "text": "and from the SF[-VAMC]. Ninety percent of trips are within a 40-mile", "paragraph_id": "para_272" }, { "text": "radius of the SF[-VAMC]. Currently, there are 30-35 transport vehicles", "paragraph_id": "para_273" }, { "text": "and 30-35 drivers utilized per day for this requirement. Please note,", "paragraph_id": "para_274" }, { "text": "historical figures are provided for informational purposes only and are", "paragraph_id": "para_275" }, { "text": "not guarantees for the level of work required under this contract. The", "paragraph_id": "para_276" }, { "text": "demand may fluctuate significantly based on veteran and organizational", "paragraph_id": "para_277" }, { "text": "needs.", "paragraph_id": "para_278" }, { "text": "ECF 1-4; ECF 1-5. The VA awarded a five-year Indefinite Delivery Indefinite", "paragraph_id": "para_279" }, { "text": "Quantity (IDIQ) contract to 28 Trans on January 1, 2024.19, 20 The IDIQ guaranteed", "paragraph_id": "para_280" }, { "text": "minimum was $2,000 with a lifetime cap of $25 million.", "paragraph_id": "para_281" }, { "text": "In February 2024, and between June and August of 2024, 28 Trans reportedly", "paragraph_id": "para_282" }, { "text": "booked over 1,000 rides per month, consistent with the historical data. By October of", "paragraph_id": "para_283" }, { "text": "MODE OF TRANSPORTATION ELIGIBILITY AND PAYMENT CONTROLS 4 (2018), available at", "paragraph_id": "para_284" }, { "text": "https://perma.cc/7DN7-XVVH; accord ECF 17 at 14. Since addressing these issues, “improper", "paragraph_id": "para_285" }, { "text": "beneficiary travel payments have been reduced from 25.6% in 2018 to 7.8% in 2025. . . . [As a result,]", "paragraph_id": "para_286" }, { "text": "some special mode transportation companies saw a drop in their revenue.” ECF 17 at 14–15", "paragraph_id": "para_287" }, { "text": "(citing ECF 17-1 at 6).", "paragraph_id": "para_288" }, { "text": "19 Prior to awarding the long-term contract to 28 Trans, the VA engaged Owl Transportation and then", "paragraph_id": "para_289" }, { "text": "Onward Health to provide these nonemergency special-mode transportation services.", "paragraph_id": "para_290" }, { "text": "20 The VA contemporaneously awarded similar contracts for other VISNs to amicus curiae", "paragraph_id": "para_291" }, { "text": "GovTranz, LLC and nonparty Integrated Trans Joint Venture LLC. Additionally, on December 20,", "paragraph_id": "para_292" }, { "text": "2024, the Battle Creek (Michigan) VAMC awarded GovTranz a contract to provide both special-mode", "paragraph_id": "para_293" }, { "text": "and common carrier transportation services.", "paragraph_id": "para_294" }, { "text": "8", "paragraph_id": "para_295" }, { "text": "2024, however, the VA reportedly reduced the number of bookings by ninety percent.", "paragraph_id": "para_296" }, { "text": "28 Trans attributes this drastic reduction to the VA’s April 2023 expansion and", "paragraph_id": "para_297" }, { "text": "May 2024 enterprise-wide rollout of the VHA–Uber Health Connect Initiative.", "paragraph_id": "para_298" }, { "text": "28 Trans further alleges that the VA began assigning the more profitable and", "paragraph_id": "para_299" }, { "text": "preferred trips to Uber Health, leaving 28 Trans to service less-profitable trips,", "paragraph_id": "para_300" }, { "text": "including bookings rejected by Uber Health.", "paragraph_id": "para_301" }, { "text": "On June 24, 2025, 28 Trans submitted a certified request for equitable", "paragraph_id": "para_302" }, { "text": "adjustment under the Contract Disputes Act, 41 U.S.C. §§ 7101–09, seeking nearly", "paragraph_id": "para_303" }, { "text": "$900,000 in damages “for the VA’s breach of contract, breach of the duty of good faith", "paragraph_id": "para_304" }, { "text": "and fair dealing, negligence, fraud, fraudulent inducement and bad faith by", "paragraph_id": "para_305" }, { "text": "improperly taking trips away from 28 Trans and giving those trips to Uber Health", "paragraph_id": "para_306" }, { "text": "and Onward [Health] . . . and by using negligent estimates in its solicitation.”", "paragraph_id": "para_307" }, { "text": "ECF 17-3 at 2. 28 Trans submitted a second claim to the contracting officer on", "paragraph_id": "para_308" }, { "text": "July 18, 2025, seeking an additional $300,000, citing an out-of-scope change to the", "paragraph_id": "para_309" }, { "text": "contract. In a final decision dated December 9, 2025, the contracting officer denied", "paragraph_id": "para_310" }, { "text": "both claims. 28 Trans commenced this action on February 5, 2026.", "paragraph_id": "para_311" }, { "text": "DISCUSSION", "paragraph_id": "para_312" }, { "text": "I. Legal Standard", "paragraph_id": "para_313" }, { "text": "This Court’s statutorily prescribed jurisdiction to adjudicate claims and grant", "paragraph_id": "para_314" }, { "text": "relief requires an affirmative waiver of sovereign immunity. United States v. White", "paragraph_id": "para_315" }, { "text": "Mountain Apache Tribe, 537 U.S. 465, 538 (2003) (quoting United States v. Mitchell,", "paragraph_id": "para_316" }, { "text": "445 U.S. 535, 538 (1980)). Accordingly, when the Court’s authority to entertain a", "paragraph_id": "para_317" }, { "text": "cause of action is challenged or otherwise called into question under RCFC 12(b)(1),", "paragraph_id": "para_318" }, { "text": "the burden is on the plaintiff to “[establish] subject matter jurisdiction by a", "paragraph_id": "para_319" }, { "text": "preponderance of the evidence.” Reynolds v. Army & Air Force Exch. Serv., 846 F.2d", "paragraph_id": "para_320" }, { "text": "746, 748 (Fed. Cir. 1988) (citing Zunamon v. Brown, 418 F.2d 883, 886 (8th Cir.", "paragraph_id": "para_321" }, { "text": "1969)). In evaluating the jurisdictional propriety of a claim, the Court accepts all", "paragraph_id": "para_322" }, { "text": "uncontroverted factual allegations as true. Banks v. United States, 741 F.3d 1268,", "paragraph_id": "para_323" }, { "text": "1277 (Fed. Cir. 2014) (citing Gibbs v. Buck, 307 U.S. 66, 72 (1939)). Where, however,", "paragraph_id": "para_324" }, { "text": "“the relevant factual allegations are in dispute, the Court may review jurisdictional", "paragraph_id": "para_325" }, { "text": "facts beyond the pleadings or order jurisdictional discovery.” Crestview Clinical", "paragraph_id": "para_326" }, { "text": "Lab’y, LLC v. United States, 181 Fed. Cl. 1, 10 (2026) (citing Fox Logistics & Constr.", "paragraph_id": "para_327" }, { "text": "Co. v. United States, 145 Fed. Cl. 236, 239 (2019)).", "paragraph_id": "para_328" }, { "text": "II. Bid Protest Jurisdiction", "paragraph_id": "para_329" }, { "text": "The Tucker Act, from which this Court’s bid protest jurisdiction arises, states,", "paragraph_id": "para_330" }, { "text": "in relevant part:", "paragraph_id": "para_331" }, { "text": "[T]he Unite[d] States Court of Federal Claims . . . shall have jurisdiction", "paragraph_id": "para_332" }, { "text": "to render judgment on an action by an interested party objecting to a", "paragraph_id": "para_333" }, { "text": "solicitation by a Federal agency for bids or proposals for a proposed", "paragraph_id": "para_334" }, { "text": "9", "paragraph_id": "para_335" }, { "text": "contract or to a proposed award or the award of a contract or any alleged", "paragraph_id": "para_336" }, { "text": "violation of statute or regulation in connection with a procurement or a", "paragraph_id": "para_337" }, { "text": "proposed procurement.", "paragraph_id": "para_338" }, { "text": "28 U.S.C. § 1491(b)(1) (emphasis added). That provision gives the Court “‘broad’", "paragraph_id": "para_339" }, { "text": "authority ‘over objections to a solicitation, objections to a proposed award, objections", "paragraph_id": "para_340" }, { "text": "to an award, and objections related to a statutory or regulatory violation so long as", "paragraph_id": "para_341" }, { "text": "these objections are in connection with a procurement or proposed procurement.’”", "paragraph_id": "para_342" }, { "text": "Raytheon Co. v. United States, 175 Fed. Cl. 281, 288 (2025) (quoting Sys. Application", "paragraph_id": "para_343" }, { "text": "& Techs., Inc. v. United States, 691 F.3d 1374, 1380–81 (Fed. Cir. 2012)). But where", "paragraph_id": "para_344" }, { "text": "a purported bid protest does not involve a procurement, the Court lacks jurisdiction", "paragraph_id": "para_345" }, { "text": "to hear it. Hymas v. United States, 810 F.3d 1312, 1317 (Fed. Cir. 2016) (“[T]his", "paragraph_id": "para_346" }, { "text": "provision speaks ‘exclusively’ to ‘procurement solicitations and contracts.’” (emphasis", "paragraph_id": "para_347" }, { "text": "in original) (quoting Res. Conservation Grp., LLC v. United States, 597 F.3d 1238,", "paragraph_id": "para_348" }, { "text": "1245 (Fed. Cir. 2010))). Accordingly, if the challenged arrangement between the VA", "paragraph_id": "para_349" }, { "text": "and Uber Health is not a procurement (or a series of procurements), 28 Trans’", "paragraph_id": "para_350" }, { "text": "bid protest claim must be dismissed for lack of subject-matter jurisdiction.", "paragraph_id": "para_351" }, { "text": "While “[t]he Tucker Act does not define the terms ‘procurement’ or ‘proposed", "paragraph_id": "para_352" }, { "text": "procurement’[,]” Distributed Sols., Inc. v. United States, 539 F.3d 1340, 1345", "paragraph_id": "para_353" }, { "text": "(Fed. Cir. 2008), 41 U.S.C. § 111 defines “procurement” to encompass “all stages of", "paragraph_id": "para_354" }, { "text": "the process of acquiring property or services, beginning with the process for", "paragraph_id": "para_355" }, { "text": "determining a need for property or services and ending with contract completion and", "paragraph_id": "para_356" }, { "text": "closeout.” This definition is the Court’s starting point in determining whether a", "paragraph_id": "para_357" }, { "text": "challenged arrangement is a procurement for purposes of the Court’s bid protest", "paragraph_id": "para_358" }, { "text": "jurisdiction. See Distributed Sols., 539 F.3d at 1345–46 (“We conclude that it is", "paragraph_id": "para_359" }, { "text": "appropriate to adopt this [statutory] definition to determine whether a ‘procurement’", "paragraph_id": "para_360" }, { "text": "[(actual or proposed)] has occurred pursuant to § 1491(b).” (citing 41 U.S.C. § 403(2)", "paragraph_id": "para_361" }, { "text": "(currently codified at 41 U.S.C. § 111))).", "paragraph_id": "para_362" }, { "text": "The meaning of “procurement” is further clarified by the Federal Grant and", "paragraph_id": "para_363" }, { "text": "Cooperative Agreement Act (FGCAA), Pub. L. No. 95-224, 92 Stat. 3 (1978) (codified", "paragraph_id": "para_364" }, { "text": "at 31 U.S.C. §§ 6301–08). The FGCAA distinguishes between procurement contracts,", "paragraph_id": "para_365" }, { "text": "which fall within the Court’s bid protest jurisdiction, and grant agreements and", "paragraph_id": "para_366" }, { "text": "cooperative agreements, both of which fall outside the Court’s bid protest jurisdiction.", "paragraph_id": "para_367" }, { "text": "Hymas, 810 F.3d at 1327–30. The “principal purpose” of procurement contracts is", "paragraph_id": "para_368" }, { "text": "“to acquire . . . property or services for the direct benefit or use of the United States", "paragraph_id": "para_369" }, { "text": "Government . . . .” 31 U.S.C. § 6303(1) (emphasis added). In contrast, the “principal", "paragraph_id": "para_370" }, { "text": "purpose” of both grant agreements and cooperative agreements is the performance of", "paragraph_id": "para_371" }, { "text": "a public service at the behest of the federal government and in its stead. Id. §§ 6304", "paragraph_id": "para_372" }, { "text": "(grant agreements), 6305 (cooperative agreements).21", "paragraph_id": "para_373" }, { "text": "21 The principal difference between grant agreements and cooperative agreements is that the former", "paragraph_id": "para_374" }, { "text": "do not contemplate “substantial involvement” between the government and its counterpart in", "paragraph_id": "para_375" }, { "text": "10", "paragraph_id": "para_376" }, { "text": "The government and Uber Health maintain that the challenged arrangement", "paragraph_id": "para_377" }, { "text": "between the government and Uber Health is not a procurement contract (or a series", "paragraph_id": "para_378" }, { "text": "of procurement contracts) because the rideshare services Uber Health provides are", "paragraph_id": "para_379" }, { "text": "acquired and intended “for the direct benefit or use” of veterans—not the federal", "paragraph_id": "para_380" }, { "text": "government. Compare ECF 1-11 at 3 (stating the purpose of the VHA–Uber Health", "paragraph_id": "para_381" }, { "text": "Connect Initiative is “to offer rideshare as a supplemental transportation option for", "paragraph_id": "para_382" }, { "text": "Veterans to get to and from their medical appointments”), with Purpose Built Fams.", "paragraph_id": "para_383" }, { "text": "Found., Inc. v. United States, 167 Fed. Cl. 714, 718 (2023) (“[T]he [Supportive Services", "paragraph_id": "para_384" }, { "text": "for Veterans Families] agreements were not for the direct benefit of the United States", "paragraph_id": "para_385" }, { "text": "government. The applicable statutory and regulatory provisions provide that the", "paragraph_id": "para_386" }, { "text": "purpose of the agreements is to facilitate supportive services to low-income veteran", "paragraph_id": "para_387" }, { "text": "families.” (first citing 38 U.S.C. § 2044(a); and then citing 38 C.F.R. § 62.1)), and Bio-", "paragraph_id": "para_388" }, { "text": "Medical Applications of Aquadilla, Inc. v. United States, 119 Fed. Cl. 546, 566–67", "paragraph_id": "para_389" }, { "text": "(2014) (“[T]he dialysis services authorized by the VA . . . were for the direct benefit", "paragraph_id": "para_390" }, { "text": "and use of individual veterans, not the VA.”). The Court agrees.", "paragraph_id": "para_391" }, { "text": "That the VA realizes significant cost avoidance and cost savings as a", "paragraph_id": "para_392" }, { "text": "consequence of the program’s expansion and continued success does not alter this", "paragraph_id": "para_393" }, { "text": "conclusion. Cf. Hymas, 810 F.3d at 1328 (“The [cooperative farming agreements]", "paragraph_id": "para_394" }, { "text": "cannot be construed as procurement contracts because the agency did not intend to", "paragraph_id": "para_395" }, { "text": "acquire farming ‘services’ for the ‘direct benefit or use of the United States", "paragraph_id": "para_396" }, { "text": "Government.’” (first quoting 31 U.S.C. § 6305(1); and then citing 41 U.S.C. § 111)).", "paragraph_id": "para_397" }, { "text": "Nor does the fact that VAMC staff, rather than the veterans themselves, log into the", "paragraph_id": "para_398" }, { "text": "Uber Health dashboard to order the rides. Regardless of who books the rides,", "paragraph_id": "para_399" }, { "text": "the veteran remains the beneficiary. Cf. 360Training.com, Inc. v. United States,", "paragraph_id": "para_400" }, { "text": "104 Fed. Cl. 575, 580 (2012) (explaining that an agency acquires a direct benefit when", "paragraph_id": "para_401" }, { "text": "it uses intermediary services to fulfill its charged obligations, but not when it “obtains", "paragraph_id": "para_402" }, { "text": "services for a public purpose”); Riegelsberger v. Air Evac EMS, Inc., 970 F.3d 1061,", "paragraph_id": "para_403" }, { "text": "1065 (8th Cir. 2020) (“It makes no difference . . . that medical providers, rather than", "paragraph_id": "para_404" }, { "text": "the patients themselves, are the primary points of contract in arranging", "paragraph_id": "para_405" }, { "text": "transportation. Just as a major airline can still be a common carrier if a passenger", "paragraph_id": "para_406" }, { "text": "uses a travel agent to arrange transportation, health-care providers can provide the", "paragraph_id": "para_407" }, { "text": "same service for their patients without affecting [the transporter’s] common-carrier", "paragraph_id": "para_408" }, { "text": "status.” (citing Air Evac EMS, Inc. v. Cheatham, 910 F.3d 751, 764 (4th Cir. 2018))).", "paragraph_id": "para_409" }, { "text": "In sum, 28 Trans’ challenge to the VA’s collaboration with Uber Health, under", "paragraph_id": "para_410" }, { "text": "which Uber Health transports veterans to and from medical appointments in the", "paragraph_id": "para_411" }, { "text": "same geographic area that 28 Trans services under its contract with the VHA, does", "paragraph_id": "para_412" }, { "text": "not fall within this Court’s bid protest jurisdiction. Accordingly, Count I must be", "paragraph_id": "para_413" }, { "text": "dismissed. Whether the contested ridesharing program breached the VHA’s contract", "paragraph_id": "para_414" }, { "text": "with 28 Trans to provide nonemergency special-mode ground transportation services", "paragraph_id": "para_415" }, { "text": "to patients of the SF-VAMC and its associated healthcare facilities, and whether", "paragraph_id": "para_416" }, { "text": "“carrying out the activity contemplated in the agreement,” while the latter do. Contrast 31 U.S.C.", "paragraph_id": "para_417" }, { "text": "§ 6304(2), with id. § 6305(2).", "paragraph_id": "para_418" }, { "text": "11", "paragraph_id": "para_419" }, { "text": "28 Trans can prevail on any of its other remaining charges, the Court leaves for", "paragraph_id": "para_420" }, { "text": "another day.22", "paragraph_id": "para_421" }, { "text": "CONCLUSION", "paragraph_id": "para_422" }, { "text": "For the foregoing reasons, defendant’s motion to dismiss Count I of plaintiff’s", "paragraph_id": "para_423" }, { "text": "complaint (bid protest) pursuant to RCFC 12(b)(1) (ECF 17) is granted. In accordance", "paragraph_id": "para_424" }, { "text": "with RCFC 12(a)(4)(A)(i), defendant shall file an answer to the operative complaint", "paragraph_id": "para_425" }, { "text": "on or before August 6, 2026. Defendant-intervenor and amici curiae are ordered to", "paragraph_id": "para_426" }, { "text": "show cause why they should not be terminated from this action by filing respective", "paragraph_id": "para_427" }, { "text": "notices to that effect on or before August 3, 2026.", "paragraph_id": "para_428" }, { "text": "It is so ORDERED.", "paragraph_id": "para_429" }, { "text": "___________________", "paragraph_id": "para_430" }, { "text": "Armando O. Bonilla", "paragraph_id": "para_431" }, { "text": "Judge", "paragraph_id": "para_432" }, { "text": "22 In dismissing Count I as outside this Court’s bid protest jurisdiction, the Court does not address the", "paragraph_id": "para_433" }, { "text": "government’s alternative contentions that 28 Trans lacks constitutional and statutory standing to", "paragraph_id": "para_434" }, { "text": "assert this claim. Because the Court finds it has no jurisdiction over Count I, its examination of the", "paragraph_id": "para_435" }, { "text": "claim ends there. See Lea v. United States, 126 Fed. Cl. 203, 211 (2016) (first citing PIN/NIP, Inc. v.", "paragraph_id": "para_436" }, { "text": "Platte Chem. Co., 304 F.3d 1235, 1241 (Fed. Cir. 2002); and then citing Booth v. United States, 990 F.2d", "paragraph_id": "para_437" }, { "text": "617, 620 (Fed. 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