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Alabama Aircraft Industries, Inc. - Birmingham v. United States

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Before NEWMAN, PLAGER, and MOORE, Circuit Judges.

This is a post-award bid protest case. The Department of the Air Force (agency) awarded a billion-dollar-plus contract to the Boeing Company (Boeing) for long-term maintenance on the Air Force’s fleet of KC-135 Stratotanker aircraft. Alabama Aircraft Industries, Inc. – Birmingham (AAII),*fn1 an unsuccessful bidder on the contract, protested the award through the established administrative channels and eventually, pursuant to 28 U.S.C. § 1491(b)(1), filed a bid protest complaint in the United States Court of Federal Claims.

Under the statute, the Court of Federal Claims reviews the agency’s decision according to the standards contained in the Administrative Procedure Act. 28 U.S.C. § 1491(b)(4). Thus, the court can set aside the agency’s decision only if it is “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.” 5 U.S.C. § 706(2)(A). Following cross-motions for judgment on the administrative record, the trial court adjudged that the agency’s contract award was arbitrary and capricious, set aside the award, enjoined the Air Force from proceeding with the award to Boeing, and ordered the agency to resolicit the procurement. Ala. Aircraft Indus., Inc. – Birmingham v. United States, 83 Fed. Cl. 666, 700, 703 (2008).

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