4 CFR 21.5:
General Jurisdiction |
Comptroller
General - Key Excerpts |
Controlled FORCE,
Inc., protests the terms of solicitation no. N40085-13-R-3314,
issued by the Navy, for security guard services for Navy
installations within the Navy’s Mid-Atlantic region.
Specifically, the protester argues the Navy is violating
intellectual property laws by incorporating the protester’s
Mechanical Advantage Control Holds program into the solicitation
requirements and Navy guidance.
We dismiss this protest because we do not consider questions of
intellectual property infringement under our bid protest
jurisdiction.
A patent or copyright holder’s remedy for any alleged government
violation of its intellectual property rights, resulting from a
government procurement, is a suit for money damages against the
government before the Court of Federal Claims. 28 U.S.C. § 1498.
See Diversified Technologies; Almon A. Johnson, Inc., B-236035,
Nov. 6, 1989, 89-2 CPD ¶ 427, See also Wynn Baxter/Educational
Training Concepts, B-197713, May 20, 1980, 80-1 CPD ¶ 349.
Additionally, original jurisdiction over trademark disputes lies
in the “district and territorial courts of the United States,”
not with our Office. 15 U.S.C. § 1121. Accordingly, our Office
lacks jurisdiction to consider the issues raised in the protest.
(Controlled FORCE, Inc. B-408853,
Sep 18, 2013) (pdf)
We do not review
allegations of an agency's failure to comply with Executive
Branch policies under our Procedures, as a general matter.
Northwest Independent Forest Manufacturers--Recon., B-207711,
B-207711.2, Aug. 31, 1982, 82-2 CPD para. 192 at 2; Fairplain
Devel. Co., et al., B-192483, Apr. 24, 1980, 80-1 CPD para. 293
at 3. We will, however, review an agency's compliance with, or
implementation of, such policies when it is contended that such
policies are contrary to applicable procurement statutes and
regulations. See e.g., Helmsman Properties, Inc., B‑278965, Apr.
20, 1998, 98-1 CPD 117 (holding the agency's compliance with
policy considerations established by Executive Order 12072 was
not contrary to the Competition in Contracting Act of 1984, 41
U.S.C. sect. 3301 et seq. (2011)); Fairplain Devel. Co., et al.,
supra. (addressing whether compliance with Executive Order 12072
improperly restricted competition contrary to procurement
statutes and regulations). We may also consider compliance with
an executive order to the extent the provisions of the order
have been expressly incorporated as requirements by the terms of
a solicitation, see e.g., Port of Bellingham, B-401837, Dec. 2,
2009, 2009 CPD para. 245 (sustaining protest where agency did
not reasonably consider whether awardee complied with
solicitation provision, which was based on an executive order).
Here, 901 North's protest merely challenges GSA's failure to
properly implement the policies established solely by Executive
Order 12072, which were not expressly incorporated as
requirements in the SFO; thus, the issues raised are not for our
consideration. (901 North Fifth
Street, LLC, B-404997; B-404997.2, July 22, 2011) (pdf)
Aleut contends
that the Air Force’s decision to cancel the solicitation is not
reasonable because the work at issue here--transportation
services--does not warrant priority consideration for
in-sourcing under 10 U.S.C.A. sect. 2463. Specifically, Aleut
contends that the work should not be retained in-house because
the transportation services do not fall within the enumerated
functions identified for special consideration in paragraph (b)
(quoted above). Aleut also contends that the agency’s cost
comparison violates the DOD’s in-sourcing guidance, which was
implemented pursuant to 10 U.S.C.A. sect. 2463, and is otherwise
inaccurate.
Our Office will not review the Air Force’s actions. Although we
review agency decisions to cancel solicitations to determine
whether those decisions are reasonably based, we generally do
not review them when the work in question is to be performed
in-house because such decisions are generally a matter of
executive branch policy. General Servs. Admin.--Recon.,
B-237268.3 et al., Nov. 7, 1990, 90‑2 CPD para. 369 at 2.
However, we have recognized limited exceptions where a
solicitation requires a cost comparison in accordance with
Office of Management and Budget Circular No. A-76, Digicon
Corp., B-256620, July 7, 1994, 94‑2 CPD para. 12 at 2, where a
statute or regulation requires a cost comparison before
retaining the work in-house, Imaging Sys. Tech., B-283817.3,
Dec. 19, 2000, 2001 CPD para. 2 at 4,[1] or where the protester
argues that the agency’s rationale for canceling the
solicitation is a pretext, Griffin Servs., Inc., B‑237268.2 et
al., June 14, 1990, 90-1 CPD para. 558 at 3. None of these
exceptions apply here.
Here, the statute in question--10 U.S.C.A. sect. 2463--does not
require, nor does Aleut allege it requires, a cost comparison
between the agency and outside contractors. Aleut’s allegation
that the work required by the solicitation should not be given
priority consideration under 10 U.S.C.A sect. 2463 fails to
state a valid basis of protest. As quoted above, paragraph (b)
of the statute establishes categories of functions to be given
“special” consideration for in-sourcing, but it does not state
that only those categories of functions may be in-sourced. Thus,
the Air Force is not precluded by 10 U.S.C.A. sect. 2463(b) from
performing the work in-house. (Aleut
Facilities Support Services, LLC, B-401925, October 13,
2009) (pdf)
Palm Beach
Aviation, Inc. (PBA) of West Palm Beach, Florida, protests the
award of a contract to Rampart Aviation, Inc. of Franklinton,
North Carolina, under request for proposals (RFP) No.
H92236-09-R-4001, issued by the U.S. Special Operations Command
Regional Contracting Office Fort Bragg (USSOCOM) for an aircraft
and pilot to support military parachute training for military
personnel at Pinal Air Park, Marana, Arizona. PBA contends that
Rampart’s proposal should have been rejected as technically
unacceptable and that the agency’s price evaluation was
inconsistent with the solicitation requirement.
(sections deleted)
As a preliminary matter, throughout these protests, PBA argues
that the agency failed to assess, in its evaluation, whether
certain regulations and directives would be followed. In this
regard, PBA correctly notes that the RFP statement of work (SOW)
provided that all air support services had to be performed in
accordance with DoD quality and safety requirements as described
in DoD Directive 4500.53, USSOCOM Directive 350-8, and several
other internal agency regulations. See e.g., RFP, SOW para. 1.1.
As set forth in more detail below, we have reviewed the issue of
whether the agency properly followed its stated evaluation
criteria, but we have not addressed whether the agency’s award
decision will result in compliance with other directives and
instructions. The jurisdiction of our Office is limited to
consideration of whether a procurement statute or regulation has
been violated, 31 U.S.C. sections 3551-3552 (2000), violation of
internal agency instructions or directives are not within our
bid protest jurisdiction. See RMS Indus., B-246082 et al., Jan.
22, 1992, 92-1 CPD para. 104 at 2. Thus, to the extent PBA’s
protests are based on an alleged violation of USSOCOM and DoD
directives, they are dismissed. (Palm
Beach Aviation, Inc., B-401450; B-401450.2; B-401516, August
28, 2009) (pdf)
Further, the determination of prevailing wages and fringe
benefits, and the issuance of appropriate wage determinations
under the SCA, are matters for the Department of Labor (DOL).
Concerns with regard to establishing proper wage rate
determinations or the application of the statutory requirements
should be raised with the Wage and Hour Division in DOL, the
agency that is statutorily charged with the implementation of
the Act. See 41 U.S.C. sections 353(a); 40 U.S.C. sect. 276a;
SAGE Sys. Techs., LLC, B-310155, Nov. 29, 2007, 2007 CPD para.
219 at 3. Thus, to the extent the protester’s contention is that
K-MAR may not properly categorize its employees under the SCA or
compensate some of its employees at the required SCA wage rate,
it is not a matter for our consideration, since the
responsibility for the administration and enforcement of the SCA
is vested in DOL, not our Office, and whether contract
requirements are met is a matter of contract administration,
which is the function of the contracting agency. SAGE Sys.
Techs., LLC, supra; Free State Reporting Inc., supra, at 7 n.7.
(Group GPS Multimedia, B-310716,
January 22, 2008) (pdf)
In the past, we have found that
the bid protest exemption did not apply to protests involving
TSA solicitations or contracts for services, which therefore
remained subject to our bid protest jurisdiction. Resource
Consultants, Inc., B‑290163, B‑290163.2, June 7, 2002, 2002 CPD
para. 94 at 5. In reaching this conclusion, we found that the
ATSA limited the bid protest exemption to acquisitions involving
“equipment, supplies, and materials.” Id. In this regard, the
ATSA states:
(o) ACQUISITION
MANAGEMENT SYSTEM.--The acquisition management system
established by the Administrator of the Federal Aviation
Administration under section 40110 shall apply to
acquisitions of equipment, supplies, and materials by
the Transportation Security Administration, or, subject
to the requirements of such section, the Under Secretary
may make such modifications to the acquisition
management system with respect to such acquisitions of
equipment, supplies, and materials as the Under
Secretary considers appropriate, such as adopting
aspects of other acquisition management systems of the
Department of Transportation.
49 U.S.C. sect. 114(o)
(emphasis added).However, in 2005, Congress enacted Public
Law 109-90, 119 Stat. 2064 et seq., which at Title V
provides as follows:
Sec. 515. For fiscal
year 2006 and thereafter, the acquisition management
system of the [TSA] shall apply to the acquisition of
services, as well as equipment, supplies, and materials.
119 Stat. 2084. Since
Congress has now provided that TSA acquisitions for
services are covered by the AMS, KCI’s protest of the
solicitation for these services is exempt from our bid
protest jurisdiction. 49 U.S.C. sect. 40110(d)(2)(F). (Knowledge
Connections, Inc., B-298172, April 12, 2006) (pdf)
To the extent Firetech
challenges the agency’s stated intention to perform the
sprinkler installation work in-house, the matter is not
appropriate for our review. Our Office does not generally
review agency decisions to perform in-house work related
to cancelled procurements, since such decisions are
matters of executive branch policy, which are not within
our bid protest function. See, e.g., RAI, Inc., B-231889,
July 13, 1988, 88-2 CPD para. 48 at 1-2. Further, the
limited exception to this rule, involving cases where an
agency utilizes the procurement system to aid in its
determination, by issuing a competitive solicitation for
the purpose of comparing the costs of in-house performance
with the costs of contracting, is not at issue here. Id. (Firetech
Automatic Sprinkler, B-295882, May 4, 2005) (pdf)
Unlike with regard to procurements of property or
services, see Federal Acquisition Regulation part 19,
there is nothing in the Small Business Act, the National
Forest Management Act, or any applicable regulations that
mandate that certain timber sales be set aside for small
businesses or that prohibit setting aside any timber sale.
Accordingly, the Forest Service's decision, in its
discretion, to set aside these three sales is not subject
to review pursuant to our Office's bid protest authority.
Tricon Timber, Inc. , B-241065, B-242174, Jan. 15, 1991,
91-1 CPD 37 at 3. (Riley Creek
Lumber Company, B-295322, January 13, 2005) (pdf)
The protester also argues that the agency's cancellation
of the solicitation in favor of performing the work
in-house was improper because OMB Circular A-76 requires
that the agency contract with the private sector for these
requirements. OMB Circular A-76 describes the executive
branch's policy on the operation of commercial activities
that are incidental to the performance of government
functions and outlines procedures for determining whether
commercial activities should be operated under contract by
private enterprise or in-house using government facilities
and personnel. Generally, we do not review such issues
because they involve maters of executive branch policy.
Daniels Mfg. Corp. , B-253637, June 7, 1993, 93-1 CPD 439
at 1. We will, however, consider protests concerning OMB
Circular A-76 when it is alleged that an agency did not
adhere to the rules announced in a solicitation issued for
the purpose of comparing the cost of contracting out work
with the cost of performing work in-house. Id. Because the
subject solicitation was not issued for such a purpose,
the matter is not one that we review. (SKJ
& Associates, Inc., B-294219, August 13, 2004) (pdf)
A protester's contention that the debriefing it received
was incomplete is not an allegation our office will
generally review. OMV Med. Inc.; Saratoga Med. Ctr., Inc.,
B-281388 et al., Feb. 3, 1999, 99-1 CPD ¶ 53 at 9 n.3. The
adequacy of a debriefing is a procedural matter concerning
agency actions after award which are unrelated to the
validity of the award itself. C-Cubed Corp., B-272525,
Oct. 21, 1996, 96-2 CPD ¶ 150 at 4 n.3. Consequently, this
protest ground is dismissed and will not be considered
further. (HpkWebDac,
B-291538.2, January 22, 2003) (txt
version)
Statutory provision enacted after proposals were
evaluated but before source selection decision was made,
which directs Secretary of Energy to, "notwithstanding any
other provision of law," ask offerors to confirm or
reinstate their offers within a certain time, select for
award of a contract the "best value of proposals" for the
solicitation's scope of work within 30 days of enactment,
and negotiate with the awardee for certain contract
modifications, does not remove the procurement from the
coverage of the ordinarily applicable procurement laws and
regulations, including those governing General Accounting
Office jurisdiction over a protest of the procurement,
where the statutory provision's requirements are not
inconsistent with these ordinarily applicable procurement
laws and regulations. (Jacobs
COGEMA, LLC, B-290125.2; B-290125.3, December 18,
2002) (txt
version)
We find that the
statutory language at issue here unambiguously limits
the application of the AMS to the TSA’s acquisitions of
“equipment, supplies, and materials,” and end our
inquiry by concluding that neither this nor any other
provision of the ATSA exempts the TSA’s acquisitions of
services from our bid protest jurisdiction. We do
not agree with NCS that, in drafting the ATSA, the
Congress simply tracked the language of the statute it
previously used to permit the FAA Administrator to
develop and implement the AMS, and intended to make the
same language applicable to the TSA. The statutory
authority for the AMS is couched in inclusive terms,
directing the FAA Administrator to develop and implement
an acquisition management system that “addresses the
unique needs of the agency and, at a minimum, provides
for more timely and cost-effective acquisitions of
equipment and materials.” Pub. L. No. 104-50, § 348(a),
109 Stat. 436, 460 (1995), codified at 49 U.S.C. §
40110(d). In contrast, the language in the ATSA is a
clear limitation on the applicability of the AMS to the
TSA’s acquisitions of “equipment, supplies, and
materials.” In any event, neither the ATSA nor its
legislative history evidence congressional intent to
simply grant to the TSA the same procurement authority
as was previously granted to the FAA. On the contrary,
while the conference report on the ATSA indicates that
the House amendment had provided that the TSA would have
the “same procurement and personnel authority as the
FAA,” H.R. Conf. Report No. 107-296, at 54 (2001), the
conference substitute contains no such language. Id. We
recognize that the practical effect of our
interpretation of this provision is that protests of TSA
acquisitions may take two different tracks depending
upon the nature of the acquisition, but conclude that
this interpretation is mandated by the specific language
of the statute. Unless the Congress changes the
statutory language, our Office will consider protests of
TSA acquisitions of services. (Resources
Consultants, Inc., B-290163; B-290163.2. June 7,
2002 (pdf))
Generally, the statutes
and regulations governing federal procurements are not
strictly applicable to reprocurements of defaulted
requirements. Montage, Inc., B-277923.2, Dec. 29, 1997,
97-2 CPD para. 176 at 2. In particular, under the
standard termination for default clause incorporated
into GPO solicitations and contracts, the contracting
officer may reprocure "under the terms and in the manner
the Contracting Officer considers appropriate" for the
repurchase. GPO Contract Terms, Pub. No. 310.2, Contract
Clauses sect. 20(a)(2)(b). We will review a
reprocurement to determine whether the agency acted
reasonably under the circumstances. Marvin Land Sys.,
Inc., B-276434, B-276434.2, June 12, 1997, 97-2 CPD para.
4 at 3. (Bluff
Springs Paper Company, Ltd./R.D. Thompson Paper Products,
B-286797.3, August 13, 2001) (pdf)
|
|
Comptroller
General - Listing of Decisions |
For
the Government |
For
the Protester |
Controlled FORCE, Inc. B-408853,
Sep 18, 2013 (pdf) |
|
901 North Fifth Street, LLC,
B-404997; B-404997.2, July 22, 2011 (pdf) |
|
Aleut Facilities Support Services, LLC,
B-401925, October 13, 2009 (pdf) |
|
Palm Beach Aviation, Inc.,
B-401450; B-401450.2; B-401516, August 28, 2009 (pdf) |
|
Group GPS Multimedia, B-310716,
January 22, 2008 (pdf) |
|
Knowledge Connections, Inc.,
B-298172, April 12, 2006 (pdf) |
|
Firetech Automatic Sprinkler,
B-295882, May 4, 2005 (pdf) |
|
Riley Creek Lumber Company,
B-295322, January 13, 2005) (pdf) |
|
SKJ & Associates, Inc.,
B-294219, August 13, 2004 (pdf) |
|
HpkWebDac, B-291538.2, January 22, 2003 (txt
version) |
|
Jacobs COGEMA, LLC, B-290125.2; B-290125.3, December 18, 2002
(txt
version) |
|
Resources Consultants, Inc., B-290163; B-290163.2. June 7,
2002 (pdf) |
|
Bluff Springs Paper Company, Ltd./R.D. Thompson Paper Products,
B-286797.3, August 13, 2001 (pdf) |
|
U.
S. Court of Federal Claims - Key Excerpts |
A basic
aspect of the requirement of justiciability is that a case or
controversy must involve parties that are "adverse."
See
Richardson v. Ramirez, 418 U.S. 24, 36
(1974) ("[W]e are limited by the case-or-controversy requirement
of Art. III to adjudication of actual disputes between adverse
parties."). The need for "adverse" parties is a requirement that
the parties have opposing interests—that they disagree about who
should be entitled to a sum of money, or about whether a
defendant should be enjoined from taking a certain action
affecting the plaintiff, or about whether a criminal defendant
should have his conviction overturned. Something real must be at
stake, and the parties’ interests with respect to that real
thing must be antagonistic. See Chicago & Grand Trunk R. Co.
v. Wellman,
143 U.S. 339, 344-45 (1982).
The Supreme Court gave its classic
elucidation of the requirement of adversity in Welman:
Whenever, in pursuance of an honest
and actual antagonistic assertion of rights by one individual
against another, there is presented a question involving the
validity of any act of any legislature, state or federal, and
the decision necessarily rests on the competency of the
legislature to so enact, the court must, in the exercise of
its solemn duties, determine whether the act be constitutional
or not; but such an exercise of power is the ultimate and
supreme function of courts. It is only in the last resort, and
as a necessity in the determination of real, earnest, and
vital controversy between individuals. It never was the
thought that, by means of a friendly suit, a party beaten in
the legislature could transfer to the courts an inquiry as to
the constitutionality of the legislative act.
Id. at 345 (emphasis added). Since
Welman, the Supreme Court has applied the principle that federal
courts may not adjudicate disputes where the parties have the
same interests in the context of declaratory judgments. See Poe
v. Ullman, 367 U.S. 497, 506 (1961) (“The Court has been on the
alert against use of the declaratory judgment device for
avoiding the rigorous insistence on exigent adversity as a
condition for evoking Court jurisdiction.”). For instance, in
C.I.O. v. McAdory, 325 U.S. 472 (1945), the petitioners sought
to enjoin enforcement of two sections of an Alabama statute. The
respondent had agreed not to enforce one of those sections so
long as another case challenging the validity of that section
was pending. The Court held that the petitioners and the
respondent were not adverse as to that section and further held
that “[t]he Court will not pass upon the constitutionality of
legislation in a suit which is not adversary or in which there
is no actual antagonistic assertion of rights.” Id. at 475
(internal citations omitted).
Although here there is no challenge to
the constitutionality of legislation, the principle of McAdory,
Ullman, and Welman, applies. Because plaintiff and defendant
agree with one another that the awards to WHR, Lexicon, and
Allegiance are invalid and should be set aside, that issue does
not present a justiciable case or controversy between them.
Defendant seeks to do the very thing plaintiff requests: cancel
the awards to WHR, Lexicon, and Allegiance, and conduct a new
procurement under a revised solicitation. The only reason
defendant has not already taken this action is the pendency of
the WHR and Lexicon suits, in which plaintiff and defendant are
on the same side. Accordingly, plaintiff and defendant are not
truly adverse parties. For that reason, there is no justiciable
case or controversy.
Moreover, even granting that there was
adversity between plaintiff and defendant before defendant
proposed taking corrective action, that proposed corrective
action renders any case or controversy moot. “A case becomes
moot—and therefore no longer a ‘Case’ or ‘Controversy’ for
purposes of Article III—‘when the issues presented are no longer
‘live’ or the parties lack a legally cognizable interest in the
come.’” Already, LLC v. Nike, Inc., 133 S. Ct. 721, 726 (2013)
(quoting Murphy v. Hunt, 455 U.S. 478, 481 (1982) (per curiam)).
When the awards to WHR, Lexicon, and Allegiance were initially
made, there were certainly “live” issues between plaintiff and
defendant, as evidenced by the GAO protest plaintiff filed,
supra at 1, challenging those awards. But those live issues were
mooted when defendant sought to do exactly as plaintiff wanted
and conduct a new procurement.
It is true, of course, that a defendant
cannot ordinarily moot a case or controversy simply by promising
to cease the challenged conduct. Id. at 726. Instead, a
defendant must show that that conduct is not likely to reoccur.
Id. Defendant has made that showing here. It would make no sense
for defendant to issue the revised solicitation on August 5 if
it planned to treat WHR’s, Lexicon’s, and Allegiance’s BPAs as
validly awarded. The only reason defendant did not proceed to
conduct a new procurement under that revised solicitation was
that this court temporarily enjoined defendant from doing so on
August 12. The court is therefore persuaded that the only
circumstance under which defendant would treat the WHR, Lexicon,
and Allegiance BPAs as valid is if the court, in the WHR and
Lexicon cases, permanently enjoins defendant from cancelling
them.
Additionally, any dispute that does
exist between plaintiff and defendant is not ripe for judicial
resolution. As with other justiciability doctrines, “the Court
of Federal Claims must address ripeness as a ‘threshold
consideration’ before addressing the merits.” Casitas Mun. Water
Dist. v. United States, 708 F.3d 1340, 1351-52 (quoting
Palazzolo v. Rhode Island, 533 U.S. 606, 618 (2001)). Ripeness
depends on two factors: “the fitness of the issues for judicial
decision and the hardship to the parties of withholding court
consideration.” Abbott Labs. v. Gardner, 387 U.S. 136, 149
(1967). “When a party challenges government action, the first
factor becomes a question of whether the challenged conduct
constitutes a final agency action.” Systems Application &
Technologies, Inc. v. United States, 691 F.3d 1374, 1384 (Fed.
Cir. 2012) (citing Tokyo Kikai Seisakusho, Ltd. v. United
States, 529 F.3d 1352, 1363 (Fed. Cir. 2008); U.S. Ass’n of
Imps. of Textiles & Apparel v. U.S. Dep’t of Commerce, 413 F.3d
1344, 1349-50 (Fed. Cir. 2005)). “As a general matter, two
conditions must be satisfied for an agency action to be ‘final’:
First, the action must mark the consummation of the agency’s
decisionmaking process—it must not be of a merely tentative or
interlocutory nature. And second, the action must be one by
which rights or obligations have been determined, or from which
legal consequences will flow.” Bennett v. Spear, 520 U.S. 154,
177-78 (1997) (internal quotation marks and citations omitted).
As to the fitness of the “dispute”
between the parties for judicial resolution, it is clear that
plaintiff’s protest challenges entirely speculative government
conduct. Plaintiff acknowledges that defendant “has made
multiple indications in the procurement record and during the
related protest proceedings that it does not intend to move
forward with performance under the invalid WHR, Lexicon, and
Allegiance BPAs,” but nevertheless contends that “there are
counter-indicia in the record that . . . constitute concrete
steps towards the Agency’s use of the BPAs, which could be
construed as an endorsement—albeit one that is inconsistent with
the record—of their validity.” Pl.’s Response to Order to Show
Cause, ECF Dkt. 21, at 7-8. But ripeness does not hinge on
whether there have been “counter-indicia,” inconsistent with the
government’s own representations, that “could be construed” as
endorsing the challenged conduct. Rather, ripeness hinges on the
existence of a “final agency action” that is neither “tentative”
nor “interlocutory,” but “by which rights or obligations have
been determined, or from which legal consequences will flow.”
Bennett, 520 U.S. at 177-78. That “final agency action” is the
only “concrete step” that will satisfy the “fitness” prong of
the ripeness doctrine. Here, plaintiff has failed to show that
defendant has determined to accept the validity of the WHR,
Lexicon, and Allegiance BPAs. And given that defendant is
currently defending its decision to cancel those BPAs and
conduct a new procurement, it is unreasonable to suppose that
such a final agency action has taken place.
Nor does the hardship prong favor a
finding of ripeness. The issues presented by this protest are
precisely the issues being adjudicated in the WHR and Lexicon
protests. The only difference is that WHR and Lexicon, unlike
plaintiff, actually disagree with defendant’s position on the
validity of their BPAs and the propriety of the corrective
action. There is no reason why plaintiff, as intervenor-defendant
in those cases, cannot argue that the BPAs are invalid and the
corrective action is justified—in fact, plaintiff, as defendant-intervenor,
has argued just that.
Finally, the lack of ripeness
illustrates that, as of yet, plaintiff has not suffered an
injury sufficient to give it standing. Article III standing
requires a plaintiff to show (1) a “concrete and
particularized,” as well as “actual or imminent,” injury in
fact, (2) that the injury is “fairly traceable” to the
challenged government conduct, and (3) that the injury is “like”
to be “redressed by a favorable decision.” Lujan, 504 U.S. at
560 (1992). In the context of a post-award bid protest, the
injury an actual or prospective bidder must show is that the
agency action has deprived the bidder of a “substantial chance”
to win the award. Orion Technology, Inc. v. United States, 704
F.3d 1344, 1348 (Fed. Cir. 2013) (citing Rex Serv. Corp. v.
United States, 448 F.3d 1305, 1308 (Fed. Cir. 2006)). Here,
defendant is currently defending a proposed corrective action
that would cancel awards to plaintiff’s competitors and invite a
new procurement in accordance with plaintiff’s wishes. Since
plaintiff’s injury is entirely contingent upon defendant losing
in the WHR and Lexicon protests, it is not possible to conclude
that plaintiff has currently suffered the injury requisite for
standing.
In short, the court concludes that
plaintiff’s protest fails to meet the standards for several
justiciability doctrines. First, the parties are not truly
“adverse.” Second, whatever adversity may have once existed, it
has been rendered “moot” by defendant’s proposed corrective
action. Third, to the extent any dispute exists between the
parties, it is not “ripe” for adjudication. Fourth, and finally,
because plaintiff’s asserted injury has not come to fruition,
plaintiff has no standing to maintain this protest.
In conclusion, for the foregoing
reasons, plaintiff’s protest is DISMISSED, without prejudice,
for lack of subject-matter jurisdiction. The Clerk is directed
to take the necessary steps to dismiss this matter. (Brookfield
Relocation Inc. v. U. S., No. 13-592C, October 4, 2013)
(pdf)
II. The Court No Longer Possesses Jurisdiction Over Plaintiff’s
Action Because Plaintiff’s Claims Are Either Moot or Unripe
This court possesses jurisdiction to review an agency’s override
of the CICA stay pursuant to 28 U.S.C. § 1491(b)(2) because the
decision whether to override the CICA stay is agency action “in
connection with a procurement.” RAMCOR Servs. Grp., Inc. v.
United States, 185 F.3d 1286, 1289 (Fed. Cir. 1999) (“Where an
agency’s actions under a statute so clearly affect the award and
performance of a contract, this court has little difficulty
concluding that that statute has a ‘connection with a
procurement.’”). However, the Court’s review of the override
decision is limited and does not involve review of the
underlying protest before the GAO. Reilly’s Wholesale Produce v.
United States, 73 Fed. Cl. 705, 710 (2006).
Defendant and defendant-intervenor move to dismiss plaintiff’s
action for lack of jurisdiction pursuant to Rule 12(b)(1) of the
Rules of the Court of Federal Claims (“RCFC”) because of three
events that they claim have rendered this action moot: (1) DOI’s
issuance of a stop-work order to Stanley on October 19, 2010;
(2) GAO’s dismissal of Harris’s protest as academic because of
DOI’s decision to undertake corrective action; and (3) DOI’s
representation that the stay of performance of the follow-on
CONNECT contract will remain in effect “during the pendency of
the corrective action.” Def.’s Renewed Mot. at 8; Stanley’s Mot.
at 3; Defendant’s Reply in Support of Its Renewed Motion to
Dismiss at 6 (docket entry 51, Nov. 19, 2010) (“Def.’s Reply”);
see also Revised Corrective Action Letter at 2. The burden rests
with defendant to demonstrate that an action is moot. Friends of
the Earth, Inc. v. Laidlaw Envtl. Servs., (TOC) Inc., 528 U.S.
167, 190-92 (2000) (contrasting mootness with standing and
holding that defendant bears the burden to demonstrate mootness
because of the potential for “sunk costs” to the judicial system
in cases where the court possessed jurisdiction initially only
to have the case subsequently dismissed as moot); see also
Alexander v. United States, 52 Fed. Cl. 710, 713 (2002); Nat’l
Med. Enters., Inc. v. United States, 11 Cl. Ct. 329, 332 (1986).
A. Plaintiff Is Not Entitled to an Order Requiring DOI
to Maintain the “Status Quo” After Dismissal of Plaintiff’s GAO
Protest
1. Plaintiff’s Original Request for Relief is Now Moot
The mootness doctrine is one of several justiciability doctrines
originating from the “case or controversy” requirement of
Article III of the Constitution. “A case is moot when the
issues presented are no longer ‘live’ or the parties lack a
legally cognizable interest in the outcome.” NEC Corp. v. United
States, 151 F.3d 1361, 1369 (Fed. Cir. 1998) (quoting Powell v.
McCormack, 395 U.S. 486, 496 (1969)). Additionally, while
“subsequent acts may moot a request for particular relief or a
count, the constitutional requirement of a case or controversy
may be supplied by the availability of other relief.” Intrepid
v. Pollock, 907 F.2d 1125, 1131 (Fed. Cir. 1990).
Although
defendant’s burden is a “heavy” one, Cnty. of L.A. v. Davis, 440
U.S. 625, 631 (1979), the Government has met its burden in this
case. There is no doubt that the equitable relief originally
requested by plaintiff is moot. Plaintiff’s complaint sought to
enjoin DOI from permitting Stanley to continue performance of
the awarded task order and a declaration that “DOI’s override
decision is invalid and has no effect.” Compl. at 13. On October
19, 2010, DOI issued a stop-work order to Stanley, and DOI never
made an “override decision.” Thus, there is no override the
court could declare invalid or enjoin. See Eskridge Research
Corp. v. United States, 92 Fed. Cl. 88, 93-94 (2010).
2.
Plaintiff is Not Entitled to an Order Requiring DOI to “Maintain
the Status Quo”
After DOI represented that it intended
to take corrective action and after GAO dismissed Harris’s
protest, plaintiff argued that the Court should require DOI to
“maintain the status quo” while the agency undertook corrective
action. Pl.’s Resp. at 17. Relying on dicta from the district
court’s decision in Dairy Maid Dairy, Inc. v. United States, 837
F. Supp. 1370 (E.D. Va. 1993), plaintiff argued that the Court
should order the DOI to “maintain the status quo . . . during
the time required for compliance with the GAO’s decision.” Pl.’s
Resp. at 19 (quoting Dairy Maid, 837 F. Supp. at 1385) (emphasis
supplied by plaintiff). However, this argument is based on an
overly-broad reading of CICA.
CICA precludes an agency from permitting
performance by the awardee “while the protest is pending.” 31
U.S.C. § 3553(d)(3)(B). The CICA stay was intended to prevent an
agency from allowing performance of a protested contract during
GAO’s consideration of a protest because such performance could
well place the protester at a disadvantage. Pl.’s Resp. at 18;
see also H. REP. NO. 98-1157 at 24 (1984); Dairy Maid, 837 F.
Supp. at 1377 (observing that “Congress enacted CICA, and
incorporated the stay provisions here at issue, in an attempt to
provide effective and meaningful review of procurement
challenges before the protested procurement[]” becomes a fait
accompli) (citing Ameron Inc. v. U.S. Army Corps of Eng’rs, 787
F.2d 875, 878 (3d Cir. 1986)). When DOI announced it intended to
take corrective action and GAO dismissed Harris’s protest as
academic, Revised Corrective Action Letter at 2; Harris Patriot
Healthcare Solutions, LLC, B-404136.1, Decision (Nov. 2, 2010),
that dismissal removed a prerequisite to CICA’s automatic
stay—the pendency of a GAO protest.
Given the fact that dismissal of the GAO
protest ended the automatic stay of performance of the follow-on
CONNECT contract, it is unclear what relief plaintiff would be
entitled to in order to “maintain the status quo.” The relief
that plaintiff sought in its protest at GAO was a re-evaluation
of DOI’s award decision taking into account plaintiff’s
allegations. But DOI is now taking corrective action in
response to plaintiff’s GAO protest, agreeing to investigate the
grounds on which plaintiff based its protest. Moreover, DOI has
committed to maintain the stay of performance of the follow-on
CONNECT contract during the pendency of the corrective action.
Revised Corrective Action Letter at 2. Therefore, DOI has
provided Harris with the relief it would have been entitled to
if the CICA stay had remained in effect.
3. The Court Declines to
Order the Agency to Permit Harris to Retain the GFE/GFI
Next, plaintiff argues that its action
is not moot because Harris seeks an order precluding DOI from
requiring the return of the GFE and GFI. Pl.’s Resp. at 29-30.
Plaintiff contends that requiring the return of GFE/GFI would
[***]. Id. at 24-25. Further, “requiring the return of the GFE/GFI
while the corrective action is on-going is illogical and an
unnecessary drain on the public fisc at a time of great economic
strain.” Id. at 25; see also Nov. 12 Tr. at 86 (stating that
prohibiting the Government from requiring “the return of the GFE”
would “provide frankly all the relief” plaintiff requires)
(statement of counsel for Harris).
Defendant, however, states that Harris’s
obligation to return the GFE and GFI is an obligation imposed by
the now-expired bridge contract, which incorporated FAR §
52.245-1. Sole-Source Bridge RFQ Ex. B. at 8; Nov. 12 Tr. at 15;
see also Def.’s Reply at 9 (“[T]he Government is well within its
rights to request the return of its own property for purposes of
closing out Harris’[s] now-expired contract.”) (emphasis in
original). That provision, entitled “Government Property,”
permits the Government at any time, upon written notice, to
“[w]ithdraw authority to use [the] property.” FAR §
52.245-1(d)(3)(i)(C). Defendant thus argues that it has a
contractual right to require the return of the GFE/GFI. Def.’s
Reply at 9. The Court agrees.
To the extent that Harris were to
conclude in the future that returning the GFE/GFI had unfairly
affected DOI’s evaluation of Harris’s proposal, Harris could
protest the award decision. Finally, although plaintiff’s
argument regarding the public fisc may turn out to have merit,
this Court’s bid protest jurisdiction does not allow the Court
to second guess the agency’s discretionary decisions regarding
contract management. See Gov’t Technical Servs. LLC v.
United States, 90 Fed. Cl. 522, 527 (2009) (holding that
Contract Disputes Act is the “exclusive mechanism” for
resolution of disputes regarding contract management).
4. The Voluntary Cessation
Doctrine Is Inapplicable
The agency’s issuance of a stop-work
order would not necessarily be enough to moot plaintiff’s action
because “[i]t is well settled that ‘a defendant’s voluntary
cessation of a challenged practice does not deprive a federal
court of its power to determine the legality of the practice.’”
Friends of the Earth, 528 U.S. at 189 (quoting City of Mesquite
v. Aladdin’s Castle, Inc., 455 U.S. 283, 289 (1982)); see also
Parents Involved in Cmty. Schols v. Seattle Sch. Dist. No. 1,
551 U.S. 701, 719 (2007); Unisys Corp. v. United States, 90 Fed.
Cl. 510, 517 (2009). If a defendant’s voluntary cessation of
challenged conduct could always render a case moot, defendant
would be “free to return to [its] old ways” and resume the
conduct in question once the case was dismissed. Friends of the
Earth, 528 U.S. at 189 (quoting City of Mesquite, 455 U.S. at
289 n.10). Nonetheless, defendant’s “voluntary cessation” of the
challenged practice can render an action moot if defendant “can
demonstrate that ‘there is no reasonable expectation that the
wrong will be repeated.’” United States v. W.T. Grant Co., 345
U.S. 629, 633 (1953) (quoting United States v. Aluminum Co. of
Am., 148 F.2d 416, 448 (2d Cir. 1945) (L. Hand, J.)).
Again, while “[t]he burden is a heavy
one,” id., defendant has adequately shown that there is no
reasonable expectation that DOI’s violation of the CICA stay
will be repeated because there is no longer any CICA stay in
effect. See Nov. 12 Tr. at 30 (“Here there can be no reasonable
expectation that the alleged violation, the allegedly wrongful
behavior, could be expected to [recur] . . . [because] there is
no CICA stay to either ignore or to override. The stay no longer
exists.”) (statement of counsel for Stanley). Plaintiff
overstates the agency’s obligations under CICA when it argues
that the case is not moot because “the risk that the Government
will again disrupt the status quo is clear and substantial.”
Pl.’s Resp. at 16.
CICA does not preclude every alteration
to the status quo; DOI’s obligation under CICA is narrower. In
this case, DOI has agreed to re-evaluate the quotations of
Stanley and Harris in light of the allegations made in Harris’s
GAO protest. And DOI has stated that it intends to investigate
each of Harris’s allegations. It has also represented that the
stay of performance of the follow-on CONNECT contract will
remain in place during the pendency of DOI’s corrective action.
Any action the agency may take during or as a result of its
corrective action would likely constitute a separate procurement
decision that Harris could seek to challenge in an appropriate
forum. However, the Government’s voluntary cessation of
performance during the pendency of DOI’s corrective action and
statements of Government counsel regarding DOI’s lack of any
present intention to request that Stanley or any other
contractor perform tasks covered by the follow-on CONNECT
contract are sufficient to show, with the requisite clarity,
that there is no reasonable expectation that DOI’s past
violations of CICA will be repeated.
B. Any Challenge to DOI’s
Conduct in Taking Corrective Action Is Not Ripe For Review
Plaintiff next argues that there remains
a live controversy because DOI may be setting itself up to be
able to allow Stanley to perform tasks covered by the follow-on
CONNECT contract through some contracting vehicle other than the
follow-on CONNECT contract. See Revised Corrective Action Letter
at 2 (confirming “that, during the pendency of the corrective
action, the stay of performance of the [CONNECT] Solution 2010
contract shall remain in place.”) (emphasis added). Plaintiff
argues that the Court should “enjoin[] the Government during the
pendency of the corrective action process . . . from allowing
Stanley to perform tasks covered by the CONNECT Solution 2010
Solicitation . . . either under the awarded contract or any
other contract.” Pl.’s Resp. at 29-30. Putting aside the
presumption of good faith that the Government is afforded when
it undertakes corrective action, Chapman Law Firm Co. v.
Greenleaf Constr. Co., 490 F.3d 934, 940 (Fed. Cir. 2007),
plaintiff’s theory runs afoul of another justiciability
doctrine: ripeness.
“[T]he ripeness doctrine . . . prevent[s]
. . . courts, through avoidance of premature adjudication, from
entangling themselves in abstract disagreements over
administrative policies, and also . . . protect[s] the agencies
from judicial interference until an administrative decision has
been formalized and its effects felt in a concrete way by the
challenging parties." Abbott Labs v. Gardner, 387 U.S.
136, 148-49 (1967), overruled on other grounds by Califano v.
Sanders, 430 U.S. 99 (1977). Agency action is ripe for review
when it (1) “marks ‘the consummation of the agency’s
decisionmaking process,’ i.e., it [is] not . . . merely
tentative or interlocutory” and (2) it is one that determines
“rights or obligations” or is one “from which legal consequences
will flow.” NSK Ltd. v. United States, 510 F.3d 1375, 1385 (Fed.
Cir. 2007) (quoting Bennett v. Spear, 520 U.S. 154, 177 (1997)).
This court has recognized in similar contexts that “[a] claim is
not ripe where it rests upon contingent future events that may
not occur as anticipated, or indeed may not occur at all.”
Eskridge, 92 Fed. Cl. at 94 (quoting Tex. Bio & Agro-Def.
Consortium v. United States, 87 Fed. Cl. 798, 804 (2009)); see
also Commonwealth Edison Co. v. United States, 56 Fed. Cl. 652,
658 (2003).
Plaintiff’s suspicions about DOI’s
future actions are simply too speculative to create a ripe
controversy. In Madison Services, Inc. v. United States, 90 Fed.
Cl. 673, 676 (2009), the plaintiff filed a protest in this court
challenging the Federal Emergency Management Agency’s “expressed
intention” to follow the recommendation of the GAO in a previous
bid protest. The Government moved to dismiss on the ground that
the agency had not yet definitively determined whether and how
to implement GAO’s recommendation. Id. at 677. After the motion
to dismiss had been fully briefed, the Government filed a
renewed motion to dismiss informing the court that the
underlying procurement had been cancelled. Id.
Like the plaintiff in Madison Services,
Harris “cannot avoid dismissal by speculating as to what [DOI]
might do.” Id. (emphasis added); see also Forestry Surveys &
Data v. United States, 44 Fed. Cl. 485, 492 (1999) (declining to
grant relief regarding agency’s potential use of past
performance ratings in awarding future contracts because “no
action can be maintained regarding future, and at this point
speculative, contracts”). As Madison Services further
demonstrates, speculation as to what the agency might do cannot
give rise to a ripe controversy because the agency can decide to
pursue a different course of action, as it did in Madison
Services by cancelling the solicitation altogether.
Indeed, plaintiff is arguably in a worse
position than the plaintiff in Madison Services because its
concern is not only speculative, but also contradicted by
Government counsel’s representation that DOI has no present
intention of permitting Stanley or any other contractor to
perform tasks covered by the follow-on CONNECT contract under
that contract or any other contractual vehicle. Nov. 12 Tr. at
6-8. If future circumstances lead the DOI to change its mind in
order to “meet its immediate and short term needs,” id. at 8,
plaintiff may at that point seek to challenge DOI’s action in an
appropriate forum. See id. at 25 (“[DOI] would have a right to
explain the basis for wanting to utilize Stanley or someone
else, and this Court would then have an opportunity to . . .
review . . . that action, and determine its propriety, as well
as weigh any harm that Harris would suffer as a result of that
usage, and any harm that the government might suffer by being
enjoined from using it, and where the public interest lies.”)
(statement of counsel for defendant). But until the agency acts
in a way that is not “merely tentative or interlocutory,” NSK,
Ltd., 510 F.3d at 1385, this court may not adjudicate
plaintiff’s unripe claims.
C. The Court Declines to Stay
Proceedings and Lacks Authority to Retain Jurisdiction Pending
Future Developments
Plaintiff alternatively requests that
the Court stay proceedings and retain jurisdiction over this
action “to ensure that Harris has an opportunity for a bid
protest remedy.” Pl.’s Resp. at 31. Plaintiff fears that
DOI may elect to contract using a vehicle “arguably insulated
from traditional bid protest review, separate and apart from the
override issues before this Court.” Id.
Although plaintiff may be correct that
future action by the DOI could leave it without a forum to hear
its bid protest, such an outcome would be the result of the
interplay of statutes regulating federal government procurement
enacted by Congress at different times. The jurisdictional
limitations that might prevent challenges to agency action in
this court would remain applicable whether or not proceedings in
this case were stayed. Plaintiff’s concerns about the
limitations Congress has imposed on this Court’s jurisdiction
over bid protests do not provide a basis for this Court’s
retaining jurisdiction and do not present a “pressing need for
[a] stay” of proceedings in this case. Cherokee Nation of Okla.
v. United States, 124 F.3d 1413, 1416 (Fed. Cir. 1997).
Moreover, the requirement that the
parties be involved in a live dispute—i.e., one that is neither
moot nor unripe—is a fundamental prerequisite to the court’s
jurisdiction, namely, the requirement of a justiciable
controversy. See Massachusetts v. Envtl. Protection Agency, 549
U.S. 497, 516 (2007); see also Prasco, LLC v. Medicis Pharm.
Corp., 537 F.3d 1329, 1336 (Fed. Cir. 2008) (discussing the
Supreme Court’s development of “various more specific but
overlapping doctrines rooted in the same Article III inquiry,
which must be met for a controversy to be justiciable, including
standing, ripeness, and a lack of mootness”). Staying the case
while retaining jurisdiction is simply not an option because,
having found that plaintiff’s claims are either moot or unripe,
the Court has no jurisdiction to hear them, and “must dismiss
the action.” RCFC 12(h)(3) (emphasis added); see also Chapman
Law Firm, 490 F.3d at 939-40 (after a finding that the action
was moot, “the Court of Federal Claims should have dismissed the
case”). (Harris Patriot
Healthcare Solutions, LLC v. U. S. and Stanley Associates, Inc.,
No. 10-708C, December 14, 2010) (pdf)
In this bid protest action, Plaintiff, Ezenia!, Inc. (Ezenia),
as well as the Defendant-
Intervenor Carahsoft Technology Corp. (Carahsoft), are vendors
on the Army’s Federal Supply Schedule that provide commercial
software to the military. The military, and in particular the
Army,
use different types of software for command and control of
soldiers, especially those who are
engaged in combat operations. These products allow
video-teleconferencing on a computer via the
internet in a secure environment, while at the same time
allowing the computer screen to show the
windows from other computer programs such as PowerPoint
presentations or battle plan diagrams.
Two such products are Adobe Breeze (now called Adobe Connect)
and Ezenia’s InfoWorkspace
(IWS). Because of the need for interoperability, the Army
standardized the software through an
evaluation technique called “Best of Breed” and chose Adobe
Breeze as its computer software.
Ezenia clearly states in its papers that it is not protesting
the actual decision of the Army to
standardize, but rather is challenging the award of sole-source
contracts for the brand name Adobe
Connect product. Ezenia alleges that three contracts were
procured in violation of the proper
statutory and regulatory guidelines governing those awards. As
such, Ezenia asserts that it is an
interested party protesting the Army’s actions in connection
with these procurements.
Defendant and Defendant-Intervenor move this Court to dismiss
Plaintiff’s action pursuant
to Rule 12(b)(1) for want of subject-matter jurisdiction. Both
Defendant and Defendant-Intervenor
argue that the matter must be dismissed because Plaintiff fails
to identify a procurement action
within this Court’s jurisdiction, and/or that Plaintiff is not
an “interested party” with standing to
bring this action. Both assert that Ezenia is not an
“interested party” because Ezenia is not a
qualified bidder. Both further contend that Ezenia is really
protesting the standardization decision
of the Army to use the Adobe product and that this Court is
without jurisdiction to entertain such
a protest.
After briefing, oral argument and careful consideration, the
Court finds that it must dismiss
this matter. It is clear to the Court that even though Ezenia
states clearly that it is not challenging
the Army’s decision to standardize, that is exactly what Ezenia
is challenging. The procurements
that have been identified by both Plaintiff and Defendant are
purchases that were properly done
within the statutory and regulatory guidelines. Although not
necessary, the Court also finds that
Plaintiff is not an interested party. The Court, therefore,
GRANTS Defendant’s and Defendant-
Intervenor’s Motions to Dismiss. (Ezenia!,
Inc. v. U. S. and Carahsoft Technology Corporation, No. 07-759C, Reissued
after seal on January 4, 2007)
In its complaint, Centech alleges that (1) GAO lacked jurisdiction over Tybrin’s
protest, (2)
Tybrin’s protests before GAO were untimely, and (3) GAO acted “illegally” and
“arbitrarily,” in
granting Tybrin’s protest. Compl. ¶ ¶ 22-25, 28, 42, 44-47, 48-52, 56-57, 59-61,
63-69, 81, 85-90.
This Court, however, will not undertake a review of GAO’s procedural or
substantive decisions.
GAO is an arm of the Congress, and its bid protest jurisdiction apparently
derives from its
authority to settle claims against the Government and to certify and revise
public accounts.18 GAO’s
decisions are recommendations and are not subject to review in any court. In
1984, under CICA,
GAO for the first time acquired explicit statutory authority to preside over
“protest[s] concerning an
alleged violation of a procurement statute or regulation.” 31 U.S.C. § 3552. If
a protest is sustained,
CICA permits GAO to recommend an appropriate remedy “to promote compliance with
procurement
statutes and regulations,” which may include ordering a new solicitation,
terminating the contract,
limiting the existing contract to bring it into compliance with procurement law,
or awarding the protester its bid preparation and protest costs. 31 U.S.C. §
3554.19
Because the Comptroller General may only “recommend” a remedy upon finding a
procurement violation, GAO’s rulings do not legally bind the parties to a bid
protest. 31 U.S.C. §
3554(b), (c); see Cubic Applications, Inc. v. United States, 37 Fed. Cl. 339,
341 (1997) (“Neither
the agency nor this court is bound by the determination of the GAO.”); see also
Honeywell, Inc. v.
United States, 870 F.2d 644, 648 (Fed. Cir. 1989) (finding that trial court is
not bound by GAO
recommendation and must determine whether GAO’s decision itself was irrational
in reviewing
agency action which relied upon GAO decision).
Section 1491(b) gives this Court jurisdiction to review an agency procurement
decision, not
the GAO’s review of that agency procurement decision. See Advanced Constr.
Servs., Inc. v.
United States, 51 Fed. Cl. 362, 365 (2002) (“Construing § 1491(b)(1) in the
expansive manner
advocated by [Plaintiff] would violate the well-settled principle that it is the
agency's decision, not
the decision of the GAO that is the subject of judicial review when a bid
protestor protests an award
previously reviewed by the GAO.”).
Although GAO’s actions are not reviewable in this Court, this does not mean that
the Court
cannot consider GAO’s decision at all. Indeed, CICA requires that the GAO
decision be part of the
administrative record in the Court’s protest action. See 31 U.S.C. § 3556.
Further, to the extent that
the agency relied upon GAO’s decision as a basis for taking corrective action,
GAO’s decision is
pivotal for the Court’s review of the agency’s procurement decision. See, e.g.,
Honeywell, 870 F.2d
at 648 (stating that in deciding whether an agency justifiably followed GAO’s
recommendation, this
court’s controlling inquiry is whether GAO’s decision was rational and
cautioning the court not to
undertake a de novo review of the underlying issue). (The
Centech Group, Inc., v. U. S. and Tybrin, Inc., 07-513C, Filed September 25,
2007; Reissued September 27, 2007) (pdf)
What makes this bid protest unusual is the jurisdictional issue arising from the
solicitation’s
citation to the Randolph-Sheppard Act. Despite KDB’s bid protest challenging the
Army’s contract award to another offeror, the key question in this case is
whether State Licensing Agencies like KDB
must seek relief under the RSA’s arbitration scheme before filing a post-award
bid protest.
Weinberger’s statutory interpretation is sound.
A good example which happens to be of particular relevance to the present
case is Randolph-
Sheppard Vendors of America v. Weinberger, 795 F.2d 90 (D.C. Cir. 1986). In
Weinberger, the
Court of Appeals for the D.C. Circuit focused on the “clear and explicit system
for resolution of
disputes arising under the Act” to construe the meaning of the RSA as a whole
and Congress’s intent
to construct a mandatory arbitration process. Id. at 102.
This court concludes not only
that
Weinberger is persuasive, but also that it represents the best rationale for
evaluating the scope of the RSA’s arbitration scheme and its implicit requirement of administrative
exhaustion before judicial
intervention will obtain. Other courts have also conclusively adopted exhaustion
as the rule in RSA
disputes. See, e.g., Comm’r of Blind Vendors v. District of Columbia, 28 F.3d
130, 135 (D.C.
Cir.1994) (“[T]he text of the Act manifests Congress’s intent that aggrieved
vendors pursue their
administrative remedies before resorting to Article III adjudication.”) (citing
Weinberger, 795 F.2d
at 101-04); Fillinger v. Cleveland Soc. for the Blind, 587 F.2d 336, 338 (6th
Cir. 1978) (“Congress’
decision to provide administrative and arbitration remedies for aggrieved blind
vendors clearly
evidences a policy judgment that the federal courts should not be the tribunal
of first resort for the
resolution of such grievances. Rather congressional policy as reflected in the
1974 amendments is
that blind vendors must exhaust their administrative and arbitration remedies
before seeking review
in the district courts.”); Middendorf v. United States, 92 F.3d 1193 (9th Cir.
1996) (table opinion)
(“Judicial review of a vendor’s claim may only occur after the decision of an
arbitration panel
convened by the Secretary.”); Morris v. Maryland, 908 F.2d 967 (4th Cir. 1990)
(table opinion) (“A
reading of the statute demonstrates that the Randolph-Sheppard Act mandates the
exhaustion of the
administrative remedies prior to instituting an action in the federal courts.”);
Ala. Dept. of Rehab.
Servs. v. U.S. Dep’t of Veterans Affairs, 165 F. Supp.2d 1262,1269 (M.D. Ala.
2001) (“The
Randolph-Sheppard Act’s plain language does not expressly require exhaustion,
but courts have
construed the act’s administrative framework to be mandatory.”) (citing Comm’r
of Blind Vendors,
28 F.3d at 134); New York v. U. S. Postal Serv., 690 F. Supp. 1346, 1349 (S.D.N.Y.
1988) (citing
Weinberger as a “thorough and exhaustive opinion” whose “reasoning is
persuasive,” the court
concluded that an argument in favor of voluntary arbitration was “less than
compelling”); Mass.
Elected Comm’r of Blind Vendors v. Matava, 482 F. Supp. 1186 (D. Mass. 1980)
(“The conclusion
reached by the Sixth Circuit in Fillinger is a sound one.”). (Commonwealth
of Kentucky, Eduaction Cabinet, Department for the Blind v. U. S., No.
04-831C, October 13, 2004) (pdf)
For the above-stated reasons, the court holds that it has jurisdiction to decide
whether the Secretary of Agriculture’s determination that it is necessary in the
public interest to make a sole source modification to intervenor’s contract is
clearly and
convincingly justified, as required by 48 C.F.R. § 6.302-7, notwithstanding the
discretion provided by 41 U.S.C. § 253(c)(7)(A). (Spherix,
Inc., v. U. S. and ReserveAmerica Holdings, Inc., No. 03-2371C, November 3,
2003)
The term “Federal agency” as used in the Tucker Act does not have a meaning
different from the term “agency” in 28 U.S.C. § 451. Defendant has not shown
that the Architect of the Capitol is a Legislative Branch entity; or if it is,
that the Architect would be excluded from this court’s jurisdiction. (Bell
BCI Company v. U. S., No. 03-796C, May 13, 2003) (pdf)
In these circumstances there is a question of whether plaintiff’s claim is ripe
for review. A claim is not ripe “if it is premised upon contingent future events
that may not occur as anticipated, or indeed may not occur at all.” Texas v.
United States, 523 U.S. 296, 300 (1998). If a claim is not ripe, the court does
not have jurisdiction to hear the case, and it must be dismissed without
prejudice. Crawford v. United States, 53 Fed. Cl. 191, 195 (2002). Because
plaintiff’s possible entitlement to bid preparation costs cannot be determined
until the conclusion of the procurement process, plaintiff’s claim for the
remaining relief sought under its complaint is not ripe at this time. “Without a
[conclusion of the procurement], plaintiff’s claim before this court is
premature.” Id. at 194. Plaintiff’s complaint as to its claim for bid
preparation costs should therefore be dismissed without prejudice. (Bannum,
Inc., v. U. S., No. 03-839C, May 8, 2003) (pdf)
The court concludes that the term "agency" in 28 U.S.C. § 451 does not reach the
judicial branch unless any of the listed entities is the agency in question. This provision lists
entities that constitute an "agency," then goes on to suggest that the definition might be
limited depending on the context. At argument plaintiffs characterized the listed entities
"as a laundry list, unless a more limited context is indicated." See Transcript of
Proceedings, Novell, Inc. v. United States, No. 00-66C, at 57 (Fed. Cl. Apr. 19, 2000)
("Tr."). Intervenors rejoined that plaintiffs failed to establish that the AOUSC was an agency, or a department,
or an independent establishment, or a commission, or an administration, or an authority, and
so forth. (Novell,
Inc., and Software Spectrum, Inc., v. U. S. and Lotus Development Corp. and ASAP
Software Express, Inc., No. 00-66C, May 8, 2000) (pdf)
Pursuant to the Tucker Act, this court maintains concurrent jurisdiction with the district courts to consider pre-award and post-award bid protests actions. See 28
U.S.C.A. § 1491(b)(1) (West Supp. 1998). "Maritime contracts[, however,] are a major exception to this Court's Tucker Act jurisdiction." Phipps v. United States, 21 Cl. Ct. 729, 731 (1990). "Jurisdiction over matters arising in admiralty, including maritime contracts, has traditionally been with the federal district courts." Southwest Marine of San Francisco, Inc. v. United States, 896 F.2d 532, 534 (Fed. Cir. 1990).
(Bay
Ship Management, Inc. v. U. S., No. 99-184C, April 16, 1999)
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U.
S. Court of Federal Claims - Listing of Decisions
|
For
the Government |
For
the Protester |
Brookfield Relocation Inc. v. U. S., No. 13-592C,
October 4, 2013 (pdf) |
Spherix, Inc., v. U. S. and
ReserveAmerica Holdings, Inc., No. 03-2371C, November 3, 2003 |
Harris Patriot Healthcare Solutions, LLC v. U. S. and
Stanley Associates, Inc., No. 10-708C, December 14, 2010 (pdf) |
Bell BCI Company v. U. S., No. 03-796C, May 13, 2003 (pdf) |
Ezenia!, Inc. v. U. S. and Carahsoft Technology
Corporation, No. 07-759C, Reissued after seal on January 4, 2007.
(pdf) |
|
The Centech Group, Inc., v. U. S. and Tybrin, Inc.,
07-513C, Filed September 25, 2007; Reissued September 27, 2007 (pdf) |
|
Commonwealth of Kentucky, Eduaction Cabinet, Department for the Blind v. U. S.,
No. 04-831C, October 13, 2004 (pdf) |
|
Bannum, Inc., v. U. S., No. 03-839C, May 8, 2003 (pdf) |
|
Asta
Engineering, Inc. v. U. S., No. 00-214C, May 10, 2000 (pdf) |
|
Novell,
Inc., and Software Spectrum, Inc., v. U. S. and Lotus
Development Corp. and ASAP Software Express, Inc., No.
00-66C, May 8, 2000 (pdf) |
|
Bay
Ship Management, Inc. v. U. S., No. 99-184C, April 16, 1999 |
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U.
S. Court of Appeals for the Federal Circuit - Key Excerpts |
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U.
S. Court of Appeals for the Federal Circuit - Listing of Decisions
|
For
the Government |
For
the Protester |
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