Federal court rules against Blue Origin in HLS lawsuit


WASHINGTON — The Court of Federal Claims has ruled against Blue Origin in its suit about the agency’s selection of SpaceX for a single Human Landing System award.

In a one-page filing Nov. 4, Judge Richard A. Hertling granted a motion by the federal government, the defendant in the case, to dismiss the case filed by Blue Origin in August. The full opinion, like other filings in the case, remains under a protective order, although Hertling requested the parties in the case to propose redactions for a public version of the opinion by Nov. 18.

Blue Origin filed suit Aug. 16 after the Government Accountability Office rejected protests filed by both Blue Origin and Dynetics to the HLS award NASA made in April. Both the protests and the later lawsuit suspended work on the HLS program, although the parties to the suit agreed to an expedited schedule for the case that originally called for a final ruling by Nov. 1.

In its suit, Blue Origin argued that NASA ignored a requirement that bidders include a flight readiness review (FRR) before the launch of each element of the lander systems. SpaceX failed to do so for each of its Starship tanker launches, but NASA did not disqualify SpaceX’s proposal.

“We stand by our position that NASA selected a proposal that was not in compliance with the solicitation. There’s serious safety issues around that, and that waiver of material requirements prejudiced us and Dynetics,” Megan Mitchell, vice president of government relations at Blue Origin, said in an interview in September.

The GAO had rejected that argument in the bid protest, saying there was no evidence other bidders would have changed their proposals if they had known NASA would waive the FRR requirement. Blue Origin countered in its suit that it “would have engineered and proposed an entirely different architecture with corresponding differences in technical, management, and price ratings” had it known that was the case.

The court decision should allow NASA to proceed with its existing HLS award to SpaceX. The agency has been seeking funding for supporting additional companies for missions beyond the single demonstration landing mission in the HLS award, which would be the Artemis 3 lander mission. However, NASA is under pressure by some in Congress, notably Senate appropriators, to include a second company in the HLS program.

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