IRS Wrongly Refused To Stay Booz Allen Contract: Tax Co.

Law360, New York (May 30, 2013, 6:33 PM EDT) -- A tax-consulting firm Thursday sued the U.S. in the Court of Federal Claims, saying the Internal Revenue Service improperly refused to stay a contract it issued to rival Booz Allen Hamilton Inc., even though the firm filed a bid protest with the Government Accountability Office.

Vinculum Solutions Inc. claims that after it protested a sole-source contract awarded to Booz Allen, which mirrored a canceled contract that VSI had bid on, the IRS refused to suspend performance of the sole-source contract, violating the Competition in Contracting Act.

"The stay of performance is required by law and regulation, because VSI has filed a...

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