Supreme Court Kingdomware Decision

Cite as: 579 U. S. _(2016) 1 Opinion of the Court

SUPREME COURT OF THE UNITED STATES  No. 14–916
KINGDOMWARE TECHNOLOGIES, INC., PETITIONER v. UNITED STATES

ON WRIT OF CERTIORARI TO THE UNITED STATES COURT OF
APPEALS FOR THE FEDERAL CIRCUIT

[June 16, 2016]
JUSTICE THOMAS delivered the opinion of the Court. Petitioner Kingdomware Technologies, Inc., a veteranowned small business, unsuccessfully vied for a federal contract from the Department of Veterans Affairs to provide emergency-notification services. Kingdomware sued, arguing that the Department violated a federal law providing that it “shall award” contracts to veteran-owned small businesses when there is a “reasonable expectation” that two or more such businesses will bid for the contract at “a fair and reasonable price that offers best value to the United States.” 38 U. S. C. §8127(d). This provision is known as the Rule of Two.

In this case, we consider whether the Department must use the Rule of Two every time it awards contracts or whether it must use the Rule of Two only to the extent necessary to meet annual minimum goals for contracting with veteran-owned small businesses. We conclude that the Department must use the Rule of Two when awarding contracts, even when the Department will otherwise meet its annual minimum contracting goals