Courts ask US Army to reinstate $365M SETA III procurement … and then cancel in non arbitrary way

Updated August 15, 2025

On the heels of Army’s announcement that SETA II (and potential new $365M SETA III) contracts are deemed “non-commercial” and they are seeking other contract option(s), a protest denial decision has now been posted publicly shedding light on the back and forth.

Does this change the end result? That is unclear, but unlikely. More will be shared if made available.

“Factual Background On September 15, 2021, the Army Contracting Command-Orlando (“agency”) issued Request for Proposal (“RFP”) No. W900KK-21-R-0035 for SETA III to support the Program Executive Office for Simulation, Training and Instrumentation (“PEO STRI”).  The agency intended to procure SETA III as a set-aside for women owned small businesses and as a single-source indefinite duration/indefinite quantity (“IDIQ”) contract with a task order limit of $365 million…”

CONCLUSION  … the agency’s decision to cancel the procurement at issue here is held unlawful and set aside. The government has expressed to the Court that regardless of the outcome of this protest, it no longer wishes to procure the services it needs through the SETA III vehicle. While that may be the case, the government must nonetheless reinstate the SETA III procurement and, if it so chooses, cancel it in a manner that is not arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.

The United States, by and through the Department of Defense, its officers, agents, and employees, and all other persons acting in concert and participating with them respecting the procurement under RFP No. W900KK-21-R-0035, is hereby PERMANENTLY RESTRAINED AND ENJOINED from cancelling the SETA III solicitation (RFP No. W900KK-21-R-0035) in a manner that is inconsistent with this opinion or the limits on agency action after an agency’s initial grounds for taking agency action have been found inadequate.

(Filed Under Seal: July 24, 2025) Reissued: August 14, 2025∗ Read The Full Document Here. 


Updated July 7, 2025

Active Army SETA II (and potential new $365M SETA III) contracts deemed “non-commercial” – seeking other contract option(s)

A Protest rages on in relation to this important US Army IDIQ (see details below), but the recent update may make the challenge irrelevant.

The US Army recently published an update conforming that Contract No. W900KK17-D-0002 (SETA II), has been extended in part due to this aforementioned litigation. The ordering period for SETA II been extended to November 9, 2025. All performance must be completed by February 14, 2026.

Of more importance, the Army has confirmed that the solicitation at issue in the case below (SETA III), and active SETA II contract, have both been deemed “non-commercial.” Accordingly, consistent with Executive Order 14271, the Army plans to pursue commercial solutions to satisfy its needs for systems engineering and technical assistance (SETA), rather than extend the SETA II contract further. To that end, the Army plans to (a) begin communicating with commercial vendors to help the Army determine the best contracting vehicle to satisfy its needs; and (b) solicit, evaluate, and award a commercial contract before February 14, 2026 (the end of the current performance period of the SETA II contract.)

More will be shared if and when it is made available.


Updated August 19, 2024

🍊OS AI Premium: WOSBs fight to halt Army efforts to squash a $325M PEO STRI IDIQ contract

The Army wants to cancel it (again), but at least two of the 17 bidders – woman-owned small businesses – who pursued and bid on this heavily competed 5-year single-award IDIQ are pushing back. More details below.




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