M.R. Pittman Group, LLC v. United States ( 2023 )


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  • Case: 21-2325     Document: 33    Page: 1   Filed: 05/22/2023
    United States Court of Appeals
    for the Federal Circuit
    ______________________
    M.R. PITTMAN GROUP, LLC,
    Plaintiff-Appellant
    v.
    UNITED STATES,
    Defendant-Appellee
    ______________________
    2021-2325
    ______________________
    Appeal from the United States Court of Federal Claims
    in No. 1:21-cv-01397-CFL, Senior Judge Charles F. Lettow.
    ______________________
    Decided: May 22, 2023
    ______________________
    JONATHAN S. FORESTER, Riess LeMieux, LLC, New Or-
    leans, LA, for plaintiff-appellant. Also represented by
    CHRISTOPHER K. LEMIEUX.
    GALINA I. FOMENKOVA, Commercial Litigation Branch,
    Civil Division, United States Department of Justice, Wash-
    ington, DC, for defendant-appellee. Also represented by
    BRIAN M. BOYNTON, PATRICIA M. MCCARTHY.
    ______________________
    Before DYK, TARANTO, and HUGHES, Circuit Judges.
    HUGHES, Circuit Judge.
    Case: 21-2325     Document: 33       Page: 2   Filed: 05/22/2023
    2                                 M.R. PITTMAN GROUP, LLC   v. US
    M.R. Pittman Group, LLC appeals a decision of the
    United States Court of Federal Claims dismissing M.R.
    Pittman’s bid protest under Court of Federal Claims Rule
    12(h)(3) for lack of subject matter jurisdiction. The Court of
    Federal Claims determined, pursuant to the Blue & Gold
    waiver rule, that M.R. Pittman waived its protest when it
    failed to object prior to the close of the bidding process. We
    hold that waiver under Blue & Gold does not deprive the
    Court of Federal Claims of subject matter jurisdiction,
    making dismissal of M.R. Pittman’s claim improper under
    Rule 12(h)(3). That error was harmless, however, because
    dismissal was proper under Court of Federal Claims Rule
    12(b)(6). Consequently, we affirm.
    I
    M.R. Pittman Group, LLC filed suit in the United
    States Court of Federal Claims in May of 2021, protesting
    the United States Army Corps of Engineers’ (USACE)
    award of a contract for the repair of pump units in Louisi-
    ana. The USACE issued Solicitation No. W912P820B0063
    on December 21, 2020 for the repair of pump units at Wil-
    kinson Canal Pump Station in Plaquemines Parish, Loui-
    siana. Pump stations, such as the one at issue, protect
    Louisiana residents and infrastructure during hurricane
    season and other times of significant flooding. At the time
    of the solicitation, the pump station was only operating at
    50% capacity.
    The USACE posted the solicitation for the repair of
    these pump units on beta.SAM.gov, the government-wide
    point of entry providing electronic access to “[g]overnment
    business opportunities greater than $25,000.” The
    webpage with the link to the solicitation noted, “[t]his is a
    100% Small Business Set Aside procurement. All
    Small Business concerns representing itself as
    Case: 21-2325     Document: 33     Page: 3    Filed: 05/22/2023
    M.R. PITTMAN GROUP, LLC   v. US                             3
    such . . . under NAICS Code: 811310 may submit offers.” 1
    J.A. 2 (emphasis original); J.A. 256. The solicitation itself
    did not include a reference to NAICS Code 811310. It did,
    however, incorporate by reference Federal Acquisition Reg-
    ulation (FAR) 52.219-6—titled “Notice Of Total Small
    Business Set-Aside”—which warns that “[o]ffers are solic-
    ited only from small business concerns,” and “[a]ny award
    resulting from this solicitation will be made to a small busi-
    ness concern.” J.A. 2–3; J.A. 61. Bids were due on January
    20, 2021.
    M.R. Pittman submitted a bid on that date and was the
    lowest bidder out of the four companies that submitted
    bids. The USACE informed M.R. Pittman that the contract
    was set aside for a small business under NAICS Code
    811310 and requested that M.R. Pittman update its NAICS
    code status. But M.R. Pittman did not qualify as a small
    business under NAICS Code 811310 and was thus ineligi-
    ble for the award. The USACE then awarded the contract
    to J. Star Enterprise, Inc., a small business based in New
    Orleans, Louisiana.
    On February 3, 2021, M.R. Pittman filed a bid protest
    with the Government Accountability Office (GAO). The
    crux of M.R. Pittman’s protest was that the omission of NA-
    ICS code 811310 meant that the solicitation could not be
    treated as a set-aside for small business concerns. The
    GAO dismissed the protest after holding that M.R. Pittman
    failed to timely challenge the solicitation.
    M.R. Pittman then filed suit in the Court of Federal
    Claims along with a motion for a temporary restraining or-
    der and preliminary injunction (collectively, the motions
    1   The North American Industry Classification Sys-
    tem (NAICS) code is the official standard used to determine
    whether a business is a “small business concern” for a given
    contract.
    Case: 21-2325     Document: 33     Page: 4    Filed: 05/22/2023
    4                               M.R. PITTMAN GROUP, LLC   v. US
    for emergency relief or emergency motions). M.R. Pittman
    again argued that the omission of the relevant NAICS code
    meant that the solicitation could not be treated as a small
    business set-aside.
    The trial court held an initial status conference to de-
    termine a schedule for the initial proceedings, including
    the motions for emergency relief. The government indi-
    cated that it intended to move to dismiss and was contem-
    plating filing its response to the motions for emergency
    relief and a motion to dismiss in the same document. The
    government explained that combining the two documents
    made sense because “the discussion of the likelihood of suc-
    cess on the merits in our view largely collapses with actual
    success on the merits.” J.A. 184 at Tr. 15:19–24. In order to
    accommodate the USACE’s desire to have these pumps re-
    paired as quickly as possible, the trial court decided to have
    separate briefing schedules for the emergency motions and
    the motion to dismiss. The Court explained that M.R.
    Pittman’s deadline to respond to any motion to dismiss
    would be decided at the hearing for the emergency motions.
    The government did in fact file a combined Motion to
    Dismiss and Opposition to Plaintiff’s Motion for Temporary
    Restraining Order and Preliminary Injunction. The com-
    bined filing argued that, under Blue & Gold, Fleet, L.P. v.
    United States, 
    492 F.3d 1308
     (Fed. Cir. 2007), M.R.
    Pittman had waived its protest grounds by failing to raise
    the issue prior to the close of bidding. The combined filing
    did not make separate arguments on this issue for the mo-
    tion to dismiss and response to the emergency motions.
    M.R. Pittman filed a Reply to the government’s Opposition
    to Plaintiff’s Motion for Temporary Restraining Order and
    Preliminary Injunction. M.R. Pittman did not file a sepa-
    rate response to the motion to dismiss, as the trial court
    had not set a response brief deadline for the motion to dis-
    miss. M.R. Pittman did, however, respond to the Blue &
    Gold waiver argument set out in the government’s
    Case: 21-2325     Document: 33      Page: 5    Filed: 05/22/2023
    M.R. PITTMAN GROUP, LLC   v. US                              5
    combined filing when it addressed the reasonable likeli-
    hood on the merits factor.
    The Court of Federal Claims then held a hearing on the
    motions for emergency relief. The trial court confirmed that
    the hearing was not on the motion to dismiss. The court
    and parties discussed, quite extensively, whether M.R.
    Pittman had waived its grounds for protest under Blue &
    Gold. The court did not set a deadline for M.R. Pittman to
    respond to the motion to dismiss. Two weeks after the hear-
    ing, the trial court denied M.R. Pittman’s motions for emer-
    gency relief and granted the government’s motion to
    dismiss. The trial court found that it lacked subject matter
    jurisdiction under Rule 12(h)(3) of the Rules of the Court of
    Federal Claims (RCFC).
    The trial court found that “the waiver rule for bid pro-
    tests adopted by the Federal Circuit forecloses [] Pittman’s
    protest” because the USACE’s “error was apparent from
    the onset” and “Pittman had ‘the opportunity to object to
    the terms of’ this solicitation ‘prior to the close of the bid-
    ding process,’” but failed to do so “without any indication of
    ‘good cause to excuse its delay.’” M.R. Pittman Grp., LLC v.
    United States, 
    154 Fed. Cl. 241
    , 244 (Fed. Cl. 2021) (quot-
    ing Blue & Gold, 
    492 F.3d at 1313, 1315
    ). Specifically, the
    trial court found that there was a “glaring discrepancy
    within the solicitation itself” between the omitted NAICS
    code and the expressly incorporated “Notice of Total Small
    Business Set-Aside” FAR clause. 
    Id.
     The trial court also
    stated that the “omission of NAICS Code 811310 from the
    solicitation [was] obvious, . . . given that the webpage with
    the link to the solicitation stated that ‘[t]his is a 100%
    Small Business Set Aside procurement’ and specifically
    listed the relevant NAICS code.” 
    Id.
     at 244 n.4 (second al-
    teration in original). And consequently, the trial court
    found that “the inconsistency ‘could have been discovered
    by reasonable and customary care,’ . . . by reading either
    the pre-solicitation information or the provisions of the
    FAR incorporated in the solicitation.” Id. at 244. The court
    Case: 21-2325     Document: 33        Page: 6   Filed: 05/22/2023
    6                                  M.R. PITTMAN GROUP, LLC   v. US
    thus held that M.R. Pittman waived its protest grounds un-
    der the Blue & Gold waiver rule and that this waiver de-
    prived the court of subject matter jurisdiction.
    M.R. Pittman filed a motion for reconsideration, which
    the trial court denied. M.R. Pittman appeals. We have ju-
    risdiction under 
    28 U.S.C. § 1295
    (a)(3).
    II
    We review the Court of Federal Claims’ legal determi-
    nations de novo and its factual findings for clear error. Pal-
    ladian Partners, Inc. v. United States, 
    783 F.3d 1243
    , 1252
    (Fed. Cir. 2015).
    M.R. Pittman argues that the trial court erred in dis-
    missing the complaint on jurisdictional grounds because
    the Blue & Gold waiver rule does not implicate subject
    matter jurisdiction. M.R. Pittman also argues that, regard-
    less of whether the waiver rule is jurisdictional, the trial
    court’s application of that rule was improper for both pro-
    cedural and substantive reasons. We address jurisdiction
    first.
    A
    M.R. Pittman argues that the trial court erred in dis-
    missing the complaint on jurisdictional grounds because
    the Blue & Gold waiver rule does not implicate subject
    matter jurisdiction. M.R. Pittman argues that it is an “in-
    terested party” “objecting to the government’s failure to
    award it the contract associated with the Solicitation,” Ap-
    pellant’s Br. 30, and that the Court of Federal Claims has
    subject matter jurisdiction over M.R. Pittman’s claims pur-
    suant to 
    28 U.S.C. § 1491
    (b)(1). In its response, the govern-
    ment does not argue that Blue & Gold waiver is
    jurisdictional. Instead, the government argues that even if
    M.R. Pittman is correct about Blue & Gold waiver being
    nonjurisdictional, the trial court’s error is harmless and
    dismissal would still be proper under RCFC 12(b)(6) for
    failure to state a claim.
    Case: 21-2325     Document: 33      Page: 7    Filed: 05/22/2023
    M.R. PITTMAN GROUP, LLC   v. US                               7
    We agree that the waiver rule articulated in Blue &
    Gold is nonjurisdictional. The Supreme Court has stressed
    a distinction between “jurisdictional prescriptions” and
    “nonjurisdictional claim-processing rules.” Fort Bend
    Cnty., Texas v. Davis, 
    139 S. Ct. 1843
    , 1849 (2019). In Blue
    & Gold, we held that
    a party who has the opportunity to object to the
    terms of a government solicitation containing a pa-
    tent error and fails to do so prior to the close of the
    bidding process waives its ability to raise the same
    objection subsequently in a bid protest action in the
    Court of Federal Claims.
    
    492 F.3d at 1313
    . We also explained that the rule reduces
    the need for the “inefficient and costly” process of agency
    rebidding “after offerors and the agency ha[ve] expended
    considerable time and effort submitting or evaluating pro-
    posals in response to a defective solicitation.” 
    Id. at 1314
    (internal quotation marks and citation omitted).
    We hold that the Blue & Gold waiver rule—which
    seeks to reduce inefficiencies by requiring an objection to a
    solicitation be made prior to the close of bidding—is more
    akin to a nonjurisdictional claims-processing rule since it
    “seeks to promote the orderly progress of litigation by re-
    quiring that the parties take certain procedural steps at
    certain specified times.” Henderson v. Shinseki, 
    562 U.S. 428
    , 435 (2011). For example, in E.P.A. v. EME Homer City
    Generation, L.P., the Supreme Court found the Clean Air
    Act’s requirement that, to maintain an objection in court
    on certain issues, one must first raise the objection “with
    reasonable specificity” during agency rulemaking to be
    nonjurisdictional because that requirement “d[id] not
    speak to a court’s authority, but only to a party’s procedural
    obligations.” 
    572 U.S. 489
    , 511–12 (2014); see also Fort
    Bend Cnty, 
    139 S. Ct. at 1850
     (listing “several other time
    prescriptions for procedural steps in judicial or agency fo-
    rums” that the Supreme Court has categorized as
    Case: 21-2325     Document: 33       Page: 8   Filed: 05/22/2023
    8                                 M.R. PITTMAN GROUP, LLC   v. US
    nonjurisdictional). Similarly, the requirement that a party
    object to a solicitation containing a patent error prior to the
    close of bidding does not speak to the Court of Federal
    Claim’s authority to hear a case, but only to that party’s
    procedural obligations.
    We thus conclude that the Court of Federal Claims
    erred in holding that M.R. Pittman’s failure to object to the
    solicitation before the close of bidding created a jurisdic-
    tional defect. The Court of Federal Claims did have juris-
    diction over M.R. Pittman’s claims under 
    28 U.S.C. § 1491
    (b)(1). The fact “[t]hat the Court of Federal Claims
    based its dismissal on lack of subject matter jurisdiction,
    however, is not fatal to the judgment of dismissal.” Adair
    v. United States, 
    497 F.3d 1244
    , 1251 (Fed. Cir. 2007). We
    therefore turn to the merits of the decision.
    B
    Beginning with M.R. Pittman’s procedural arguments:
    M.R. Pittman first argues that the trial court erred in de-
    ciding the motion to dismiss before M.R. Pittman filed a
    formal response to the motion. M.R. Pittman explains that
    the trial court only set deadlines for the motions for emer-
    gency relief and that a schedule for M.R. Pittman to re-
    spond to the motion to dismiss would be set at the hearing
    on the motions for emergency relief. See Appellant’s Br. 16–
    20. As a result, M.R. Pittman never filed a brief formally
    responding to the motion to dismiss and urges us to reverse
    the dismissal to provide it an “opportunity to respond to the
    Motion to Dismiss.” Id. at 25.
    The Supreme Court has stated that “a plaintiff with an
    arguable claim is ordinarily accorded notice of a pending
    motion to dismiss for failure to state a claim and an oppor-
    tunity to amend the complaint before the motion is ruled
    upon.” Neitzke v. Williams, 
    490 U.S. 319
    , 329 (1989). This
    notice and opportunity to amend enables the plaintiff
    “meaningfully to respond by opposing the motion to dismiss
    on legal grounds or by clarifying his factual allegations so
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    M.R. PITTMAN GROUP, LLC   v. US                           9
    as to conform with the requirements of a valid legal cause
    of action.” 
    Id.
     at 329–30. The opportunity to respond “crys-
    tallizes the pertinent issues and facilitates appellate re-
    view of a trial court dismissal by creating a more complete
    record of the case.” 
    Id. at 330
    .
    Even though M.R. Pittman never filed a formal brief
    opposing the motion to dismiss, it had a more than suffi-
    cient opportunity to respond to the government’s motion to
    dismiss. As explained above, the government filed a com-
    bined Motion to Dismiss and Opposition to Plaintiff’s Mo-
    tion for Temporary Restraining Order and Preliminary
    Injunction. That combined filing had a single section on ap-
    plication of the Blue & Gold waiver rule. That section com-
    prised both the entirety of the government’s motion to
    dismiss and the entirety of the government’s arguments re-
    garding the likelihood of success on the merits, which is a
    mandatory element of emergency injunctive motions. See
    Silfab Solar, Inc. v. United States, 
    892 F.3d 1340
    , 1345
    (Fed. Cir. 2018). The applicability of Blue & Gold waiver
    was discussed extensively at the hearing on the emergency
    motions. And the government’s arguments regarding like-
    lihood of success on the merits for the motions for emer-
    gency relief and its arguments regarding the motion to
    dismiss were one and the same. Thus, in responding to the
    former, M.R. Pittman also responded to the latter.
    In arguing that the court committed reversible error in
    deciding the motion to dismiss before M.R. Pittman filed a
    formal brief in opposition, M.R. Pittman relies heavily on
    our decision in ArthroCare Corp. v. Smith & Nephew, Inc.,
    
    406 F.3d 1365
     (Fed. Cir. 2005). Appellant’s Br. 20–25. In
    that case, we remanded for further briefing and reconsid-
    eration of a dismissal under Rule 12(b)(6) where the oppos-
    ing party had no opportunity to respond to the arguments
    for dismissal because the case had been stayed. 
    Id. at 1369
    .
    M.R. Pittman argues that this case is analogous to Arthro-
    Care because the court explicitly stated that the hearing
    and briefing would only pertain to the motions for
    Case: 21-2325    Document: 33      Page: 10    Filed: 05/22/2023
    10                              M.R. PITTMAN GROUP, LLC   v. US
    emergency relief. M.R. Pittman’s reliance on ArthroCare is
    misplaced for two reasons.
    First, the law applicable in ArthroCare is not applica-
    ble here. Our decision in ArthroCare applied the law of the
    Third Circuit, which had adopted “a categorical rule” that
    a Rule 12(b)(6) motion can be decided only after affording
    the non-moving party an opportunity to respond. 
    Id.
     We,
    on the other hand, have never held that a plaintiff is cate-
    gorically entitled to an opportunity to oppose a Rule
    12(b)(6) motion. To the contrary, we have held that the
    Court of Federal Claims “may dismiss sua sponte under
    Rule 12(b)(6), provided that the pleadings sufficiently evi-
    dence a basis for that action.” Anaheim Gardens v. United
    States, 
    444 F.3d 1309
    , 1315 (Fed. Cir. 2006). Second, the
    facts in ArthroCare are quite different from the facts of this
    case. As just explained, M.R. Pittman had substantively re-
    sponded to the motion to dismiss both in its briefing on the
    motion for preliminary injunction as well as at oral argu-
    ment. That is a far cry from the facts in ArthroCare, where
    the defendant did not have an opportunity to respond to
    the plaintiff’s motion to dismiss an antitrust counterclaim
    because the case had been stayed. ArthroCare, 
    406 F.3d at 1368
    .
    To be sure, M.R. Pittman’s assumption that it would
    have the opportunity to file another brief before the motion
    to dismiss was decided was a reasonable one given the trial
    court’s statements to that effect. That fact, however, does
    not mean that the loss of that opportunity amounts to
    harmful procedural error. See 
    28 U.S.C. § 2111
     (“On the
    hearing of any appeal . . . , the court shall give judgment
    after an examination of the record without regard to errors
    or defects which do not affect the substantial rights of the
    parties.”). For the reasons set forth above, M.R. Pittman
    was not harmed by its inability to submit a formal brief
    opposing the motion to dismiss.
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    M.R. PITTMAN GROUP, LLC   v. US                           11
    M.R. Pittman also argues that the trial court erred in
    dismissing the case before the production of the adminis-
    trative record. See Appellant’s Br. 25–27. According to M.R.
    Pittman, the government violated RCFC, Appendix C, Sec-
    tion VII when the government failed to produce the admin-
    istrative record after M.R. Pittman requested it. But
    Section VII only requires production of the administrative
    record “by the date(s) established at the initial status con-
    ference.” RCFC, App. C, Sec. VII. In this case, the trial
    court did not set a date to produce the administrative rec-
    ord during the status conference, so the government could
    not have violated Section VII.
    Moreover, the portions of the administrative record
    that M.R. Pittman seeks are not relevant to the patent am-
    biguity analysis. M.R. Pittman seeks, inter alia, documents
    related to another bidder that was not awarded the con-
    tract despite the fact that this contractor’s bid was lower
    than the awardee’s bid. M.R. Pittman appears to argue
    that the reason that this second contractor was not
    awarded the contract is because, like M.R. Pittman, it was
    not a small business under the relevant NAICS code. See
    Appellant’s Br. 26 (quoting J.A. 213). But as explained be-
    low, whether a contract contains a patent or latent ambi-
    guity is a question of law, not fact. Therefore, whether this
    other bidder was also not a small business under the proper
    NAICS code is irrelevant to the analysis.
    In sum, we hold that the trial court did not commit re-
    versible procedural error when it ruled on the govern-
    ment’s motion to dismiss before M.R. Pittman filed a
    formal response to the motion. Nor was M.R. Pittman prej-
    udiced by the fact that the administrative record had not
    been produced before the action was dismissed. Having re-
    jected M.R. Pittman’s procedural arguments, we turn to its
    substantive arguments as to why Blue & Gold waiver is
    inapplicable in this case.
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    12                                M.R. PITTMAN GROUP, LLC   v. US
    C
    As explained above, Blue & Gold requires that a party
    with the opportunity to object to the terms of a government
    solicitation containing a patent error must do so prior to
    the close of the bidding process or else it waives its ability
    to raise that objection in the Court of Federal Claims. 
    492 F.3d at 1313
    . That M.R. Pittman had the opportunity to,
    but did not, inquire about the missing NAICS code is un-
    disputed. The dispute here lies in whether the missing NA-
    ICS code—when considered with the solicitation’s webpage
    or the FAR provision incorporated in the solicitation—con-
    stituted a patent omission from the solicitation. If the omis-
    sion is patent, then M.R. Pittman waived its protest ground
    by failing to object before the close of bidding. If the omis-
    sion is latent, then M.R. Pittman can proceed with its bid
    protest. We conclude that the omission was patent.
    “Whether an ambiguity or defect is patent is an issue
    of law reviewed de novo.” Per Aarsleff A/S v. United States,
    
    829 F.3d 1303
    , 1312 (Fed. Cir. 2016). A defect in the solici-
    tation is “patent” “if it is an obvious omission, incon-
    sistency, or discrepancy of significance” or “if it could have
    been discovered by reasonable and customary care.” In-
    serso Corp. v. United States, 
    961 F.3d 1343
    , 1349 (Fed. Cir.
    2020). Furthermore, when interpreting a contract, the par-
    ties are charged with knowledge of law and fact appropri-
    ate to the subject matter. Turner Const. Co. v. United
    States, 
    367 F.3d 1319
    , 1321 (Fed. Cir. 2004).
    Here, we agree with the trial court that the solicita-
    tion’s incorporation of FAR 52.219-6—titled “Notice of To-
    tal Small Business Set-Aside”—and the statement of the
    solicitation’s webpage that “[t]his is a 100% Small Business
    Set Aside procurement” with the relevant NAICS code ren-
    ders the omission patent as a matter of law. J.A. 4–5; J.A.
    61, 256.
    M.R. Pittman’s arguments to the contrary are uncon-
    vincing. M.R. Pittman argues that, because FAR 52.219-6
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    M.R. PITTMAN GROUP, LLC   v. US                              13
    only applies to solicitations that have been totally set-aside
    for small businesses, “there is no incorporation in the So-
    licitation itself to say that this Solicitation was totally set
    aside for small business concerns, this Solicitation, as a
    matter of law, has not been set aside for any such purpose.”
    Appellant’s Br. 29. In other words, M.R. Pittman argues
    that, because FAR 52.219-6 is conditional and the omission
    of the proper NAICS code means the condition was never
    triggered, “FAR 52.219-6 is not applicable to the Solicita-
    tion” and therefore cannot create a patent ambiguity. Id.;
    see also 
    id.
     at 27–29; FAR 52.219-6(b)(1) (“This clause ap-
    plies only to . . . [c]ontracts that have been totally set aside
    for small business concerns[.]”).
    But as the trial court correctly determined, to accept
    this argument “is to ignore the incorporated FAR regula-
    tion.” M.R. Pittman Grp., 154 Fed. Cl. at 244. What M.R.
    Pittman’s argument fails to account for is the fact that the
    incorporation of FAR 52.219-6 evidences an inconsistency
    in the solicitation given the omission of the code. The incor-
    poration of the FAR provision suggests an error—either the
    FAR clause was incorporated when it was not applicable or
    an NAICS code was omitted when it was required.
    Such an ambiguity is especially glaring given the fact
    that the webpage with the link to the solicitation noted,
    “This is a 100% Small Business Set Aside procure-
    ment.” M.R. Pittman argues that the webpage is irrelevant
    to whether there was a patent ambiguity because the
    webpage was not incorporated into the solicitation and “[a]
    patent ambiguity cannot be created where the ‘solicitation
    itself is facially unambiguous and the only conflict that al-
    legedly exists is between the solicitation and some ancil-
    lary source of information.’” Appellant’s Reply Br. 18–19
    (quoting Lab’y Corp. of America v. United States, 
    108 Fed. Cl. 549
    , 566 (Fed. Cl. 2012)).
    But the incorporation of a FAR clause created an am-
    biguity that a reasonably diligent contractor would seek to
    Case: 21-2325     Document: 33     Page: 14     Filed: 05/22/2023
    14                              M.R. PITTMAN GROUP, LLC   v. US
    clarify. Therefore, the solicitation cannot be said to be “fa-
    cially unambiguous.” Moreover, M.R. Pittman’s suggestion
    that extrinsic evidence can never be used to determine
    whether an ambiguity was patent to one of the contracting
    parties is wrong as a matter of law.
    Where an ambiguity is not so glaring as to rise to
    the level of patency, yet the contractor knows or
    has reason to know that the drafting party, una-
    ware of the contractor’s interpretation, holds an in-
    terpretation different than its own, the result when
    that contractor seeks to bridge the crevasse in his
    own favor should be no different than if the ambi-
    guity were patent.
    HPI/GSA 3C, LLC v. Perry, 
    364 F.3d 1327
    , 1336–37 (Fed.
    Cir. 2004) (citation and quotation marks omitted). Indeed,
    in Per Aarsleff A/S v. United States, we held patent a de-
    fect that was reasonably discoverable by examining the
    Danish central business register where companies were re-
    quired to register. 
    829 F.3d at 1313
    .
    Finally, M.R. Pittman makes two arguments for the
    first time in its reply brief that we also find unpersuasive. 2
    First, M.R. Pittman argues that, since it “gain[ed] no ad-
    vantage by waiting to object,” the purpose of the Blue &
    Gold waiver rule was not met and the rule should not ap-
    ply. Appellant’s Reply Br. 15. But the assertion that M.R.
    Pittman did not benefit from waiting to object is simply not
    true. Had M.R. Pittman inquired into the set-aside status,
    it risked the USACE amending the solicitation to add the
    missing code, in which case it would be clear that M.R.
    2 Regardless of their persuasiveness, these argu-
    ments are also forfeited. See SmithKline Beecham Corp. v.
    Apotex Corp., 
    439 F.3d 1312
    , 1319 (Fed. Cir. 2006) (“Our
    law is well established that arguments not raised in the
    opening brief are waived.”).
    Case: 21-2325    Document: 33        Page: 15   Filed: 05/22/2023
    M.R. PITTMAN GROUP, LLC   v. US                            15
    Pittman was ineligible for the contract. By not seeking clar-
    ification on the set-aside status of the solicitation, M.R.
    Pittman left itself the ability to argue that the solicitation
    was not a small-business set-aside for lacking the required
    NAICS code. Second, M.R. Pittman argues that the solici-
    tation also incorporates other FARs that M.R. Pittman con-
    tends are inapplicable. See Appellant’s Reply Br. 20–22
    (identifying FAR 52.219-7, 27, 29, and 30 as being incorpo-
    rated at J.A. 69–70). But the provisions M.R. Pittman
    points to are only incorporated if “the Contracting Officer
    has indicated [them] as being incorporated in th[e] contract
    by reference.” J.A. 68. There is no indication that the con-
    tracting officer marked FAR 52.219-7, 27, 29, or 30 as being
    incorporated. FAR 52.219-6, on the other hand, is explicitly
    incorporated by reference. J.A. 61.
    In sum, we agree with the trial court that M.R. Pittman
    waived its protest grounds under the Blue & Gold waiver
    rule.
    III
    We have considered M.R. Pittman’s remaining argu-
    ments, but we find them unpersuasive. Accordingly, the
    judgment of the Court of Federal Claims is affirmed, albeit
    for failure to state a claim rather than for a lack of subject
    matter jurisdiction.
    AFFIRMED