CliniComp International, Inc. v. United States, No. 18-1101 (Fed. Cir. 2018)Annotate this Case
The VA and Department of Defense (DoD) committed to developing an integrated electronic health records (EHR) system to replace their separate systems but abandoned that plan. DoD replaced its system with a commercially-available system, consisting primarily of software developed by Cerner. The VA issued a request for information and engaged a consultant, Thornton, to assess four options—three involving an off-the-shelf EHR system, and the fourth involving modernizing its existing system. Thornton concluded that the market could support all four options and that the VA’s best option for improving interoperability with the DoD would depend on the VA’s own evaluation. The VA chose to acquire a new system and invoked the public-interest exception to the Competition in Contracting Act’s open competition requirement, 41 U.S.C. 3301, 3304(a)(7), to negotiate a sole-source contract with Cerner “for the acquisition of the [EHR] system being deployed by the [DoD] and related services.” CliniComp, an incumbent provider of EHR systems to the VA, filed a bid protest, asserting that the sole-source decision lacked a rational basis and violated the Act. The Claims Court dismissed. The Federal Circuit affirmed. CliniComp lacked standing to protest the decision. To establish standing, CliniComp had to show that it was “an actual or prospective bidder” and had a “direct economic interest in the procurement or proposed procurement.” CliniComp did not establish that it had the kind of experience that would enable it to compete for the work contemplated by the VA’s planned contract.