Trump’s commercial procurement push derails fight over $365M Army contract

Several protests are still open at the U.S. Court of Federal Claims, but the fight for a $365 million Army contract is likely over for other reasons not related to the challenges.

The $365 million Systems Engineering and Technical Assistance III contract has been embroiled in various protests since 2023 before ending up at the court last summer.

Protesters claimed Advanced Technology Leaders, the original winner, had an organizational conflict-of-interest. The Army took corrective action to address the allegations and allowed ATL to remain in the competition.

Mayvin, StraCon Services Group and TAPE LLC have protests that are technically still pending before the court.

But the Army apparently is putting an end to all of this because of President Trump's executive order in April that requires agencies to buy commercially-available products and services whenever possible.

In reviewing SETA III, the Army has deemed the contract to be “non-commercial.”

“The Army plans to pursue commercial solutions to satisfy its needs for systems engineering and technical assistance,” it told the court in a July 1 filing.

The Army extended the current SETA II contract held by OST to Nov. 9. Work under its task orders must be completed by Feb. 14, 2026.

The Army has told the court it will begin talking to commercial providers as part of its process to determine which  contracting vehicle to use. The Army plans to solicit, evaluate and award a commercial contract before Feb. 14, 2026.

Because the Army has cancelled SETA III, the court’s next most likely step is to dismiss the protests because there is no longer a contract to protest.

One unanswered question applies well beyond these protests.

What does the Army consider a “commercial” contract? Perhaps the final solicitation for SETA III's replacement will provide an answer.