M.R. Pittman Group, LLC v. United States, No. 21-2325 (Fed. Cir. 2023)
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The Army Corps of Engineers (USACE) solicited a contract for the repair of pumps in Louisiana. The webpage linking to the solicitation noted, “[t]his is a 100% Small Business Set Aside procurement" and cited NAICS Code: 811310--the official standard used to determine whether a business is a “small business concern.” The solicitation itself did not refer to Code 811310 but incorporated by reference Federal Acquisition Regulation 52.219-6, “Notice Of Total Small Business Set-Aside.” Pittman submitted the lowest bid. USACE requested that Pittman update its NAICS code status. Pittman did not qualify as a small business under Code 811310 and was ineligible for the award.
Pittman filed a bid protest, arguing that the omission of Code 811310 meant that the solicitation could not be treated as a set-aside for small business concerns. The Government Accountability Office dismissed the protest. At a hearing, the parties discussed the "Blue & Gold" rule: A party who has the opportunity to object to the terms of a government solicitation containing a patent error and fails to do so before the close of the bidding process waives its ability to raise the same objection subsequently in a bid protest action. The court dismissed for lack of subject matter jurisdiction under Blue & Gold. The Federal Circuit affirmed. While waiver under Blue & Gold does not deprive the Claims Court of subject matter jurisdiction, the error was harmless because Pittman waived its objection.