Justia U.S. Federal Circuit Court of Appeals Opinion Summaries

The Government Printing Office (GPO) received nine bids for a printing order. Colonial was the lowest bidder ($2,418,443.54); Fry was the second lowest ($2,502,545.05). Colonial was a small business. Under its Printing Procurement Regulation, GPO can award contracts only to “responsible” bidders. The contracting officer found Colonial non-responsible, considering previous late deliveries, and recommended an award to Fry. A purchase order issued to Fry. Colonial filed a protest with the Government Accountability Office, arguing that the responsibility determination should have been referred to the Small Business Administration (SBA) Certificate of Competency Program, 15 U.S.C. 637(b)(7), under which a “Government procurement officer” may not preclude a small business from being awarded a government contract due to non-responsibility without referring the matter to the SBA, which responded that “requirements of the COC program could, arguably, apply to GPO and other nonexecutive agencies.” The GAO found that GPO was not subject to the program and that the contracting officer had a reasonable basis for her determination of non-responsibility. The Claims Court held that GPO did not violate the referral requirements and that the GPO’s responsibility determination was not arbitrary. The Federal Circuit affirmed, holding that GPO is not required to refer responsibility determinations to the SBA. View "Colonial Press Int'l, Inc. v. United States" on Justia Law

In 1996, SUFI contracted with the Air Force to operate telephone systems in lodging facilities on bases in Germany. SUFI installed equipment at no cost to the Air Force, which agreed that guests would make calls exclusively through SUFI’s network. The Air Force quickly broke its promise of exclusivity. SUFI initiated administrative proceedings. In 2004, the Armed Services Board of Contract Appeals found the Air Force in material breach. The parties entered into a partial settlement in 2005. SUFI then submitted claims to the contracting officer, totaling $131 million. The contracting officer failed to issue a decision for more than six months before issuing a final decision denying all of SUFI’s claims except one. The Board found in SUFI’s favor on 22 claims. In 2010, SUFI submitted a claim for attorney fees and requested a decision within 60 days. More than six months passed; Air Force counsel told SUFI to consider its claim “deemed denied.” SUFI filed suit The Court of Federal Claims awarded attorney fees with interest but denied overhead and lost profit. The Federal Circuit rejected the government’s argument that SUFI failed to exhaust administrative remedies. The contracting officer’s delay rendered the contractual remedy inadequate and unavailable, regardless of the Board’s discretionary authority to review an appeal where the contracting officer fails to issue a decision in “a reasonable time.” The court held that SUFI is entitled to attorney fees under common law; vacated the denial of overhead and profit; and remanded for recalculation of interest. View "SUFI Network Servs., Inc. v. United States" on Justia Law

The National Institute on Drug Abuse (NIDA) within the National Institutes of Health issued Request for Proposal for the “NIH Pain Consortium Centers of Excellence in Pain Education Coordination Center.” NIDA initially issued the solicitation as a small business set-aside under North American Industry Classification System code 541712, “Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),” which limits offerors to small businesses with 500 employees or fewer. A prospective offeror appealed the NAICS code designation to the U.S. Small Business Administration Office of Hearings and Appeals, which ordered NIDA’s contracting officer to amend the solicitation to change the NAICS code designation to 541611, “Administrative Management and General Management Consulting Services.” Palladian sought to enjoin NIDA from accepting and evaluating proposals under the new code, which rendered Palladian ineligible to compete. The Court of Federal Claims granted Palladian’s motion for judgment on the administrative record, finding that the contracting officer’s NAICS code amendment was arbitrary and capricious because NAICS code 541611 did not best describe the statement of work for the solicitation. The Federal Circuit reversed, finding that Palladian failed to exhaust its administrative remedies. View "Palladian Partners, Inc. v. United States" on Justia Law

In 2013, the Department of Homeland Security issued a final decision removing Garcia from the U.S. Border Patrol for misconduct. Garcia received notice the same day. Under 5 U.S.C. 7121(e)(1), Garcia had the option to appeal his removal to the Merit Systems Protection Board (MSPB) or to invoke arbitration, under his union’s collective bargaining agreement (CBA). Article 34 of the CBA states that in cases involving adverse actions, such as removal, requests for arbitration “must be filed . . . not later than thirty (30) calendar days after the effective date of the action.” His union mailed a letter to the Agency requesting arbitration 28 days after the effective date of Garcia’s removal. The Agency did not receive this request until seven days later. After an arbitrator was appointed, the Agency moved to dismiss. The Arbitrator found the plain meaning of “filed” in the CBA requires actual receipt of the request for arbitration, relying on the definition of “file” used in federal court proceedings. The Federal Circuit reversed, holding that the request for arbitration need only be mailed within the 30-day time period. View "Garcia v. Dep't of Homeland Sec." on Justia Law

Bannum protested decisions of the Bureau of Prisons of the U.S. Department of Justice to award two contracts to other bidders, alleging a common defect in the terms of the solicitations and problems in the evaluation of competing bids. Bannum cited a requirement of compliance with Prison Rape Elimination Act of 2003, 42 U.S.C. 15601–15609 and the government’s failure to provide pricing information with respect to the requirement. In each case, the Court of Federal Claims dismissed Bannum’s suit. Finding that Bannum’s proposal, by failing to commit Bannum to a fixed price, was materially out of compliance with the terms of the solicitation, the court concluded that Bannum was not an “interested party” entitled to bring its protest under 28 U.S.C. 1491(b). The Federal Circuit affirmed in consolidated appeals, holding that, because Bannum did not adequately present its objection to the solicitations before the awards, Bannum waived its ability to challenge the solicitations. On appeal, Bannum failed to preserve its separate challenges to the bid evaluations. View "Bannum, Inc. v. United States" on Justia Law

The federal Centers for Medicare and Medicaid Services (CMS) uses contractors to determine if Medicare claims were correctly paid. If the contractor identifies an overpayment, CMS sends a demand letter to the provider seeking repayment. Under contracts from 2008, the contractors invoiced CMS for a contingency fee when the overpayment was collected, typically 41 days after the demand letter. In 2014, CMS issued new requests for quotes for these recovery services, with new terms requiring the contractors to wait to invoice CMS until any challenge to the repayment request passed the second level of a five-level appeal process, typically 120 to 420 days after the demand letter. Five contractors bid; CGI did not. Before bidding closed, CGI filed a pre-award protest at the Government Accountability Office. While the protest was pending, bidding closed. The GAO subsequently denied the protest. CGI filed a protest in the Court of Federal Claims. That court granted the government judgment on the administrative record, holding that the modified payment terms did not violate statutory or regulatory provisions nor unduly restrict competition. The Federal Circuit reversed, holding that CGI had standing and citing Federal Acquisition Regulation Part 12’s prohibition against including contract terms inconsistent with customary commercial practice. View "CGI Fed. Inc. v. United States" on Justia Law

The Department of Agriculture’s Rural Utilities Service (RUS) made a $267 million loan to Open Range to finance construction of wireless broadband networks in 540 RUS-approved markets. Open Range subcontracted with G4S. The FCC suspended a permit, so that Open Range lost the spectrum rights necessary to operate the planned network. RUS gave notice of its intent to terminate remaining funds on the loan unless Open Range could obtain replacement rights. Open Range began failing to meet its obligations to subcontractors. The Secretary of Agriculture made loan money available, provided a press release, and offered to reassure subcontractors, but Open Range was unable to regain the full spectrum rights necessary to complete the original project. RUS and Open Range executed an amendment to reflect a loan amount reduced to $180 million, and 160 RUS-approved markets, but Open Range remained unable to satisfy its debts and filed for bankruptcy. G4S filed suit. The Claims Court held that G4S was not a third party beneficiary to the agreement. The Federal Circuit affirmed, stating that G4S asked that the government incur liability simply because it talked to the individuals in charge of a failing project in an attempt to fix the problems. View "G4S Tech., LLC v. United States" on Justia Law

In 2003, the VA entered into a contract with Reliable for electrical improvements at a VA medical center, requiring installation of three backup generators, “new and of the most suitable grade.” Federal Acquisition Regulation 52.211-5, incorporated by reference, requires that supplies be “new, reconditioned, or remanufactured,” and defines “new” as “composed of previously unused components.” Reliable sub-contracted to Fisk, which contracted with DTE. In 2004, DTE delivered two Cummins Power Generation generators to the construction site. The VA’s senior resident engineer inspected the generators and determined that they were not “new.” He wrote to Reliable, stating: They show a lot of wear and tear including field burns to enlarge mounting holes. Are they new and will you certify them as such? I cannot pay you … without that certification. Fisk and Reliable initially agreed that the generators did not meet the contract specification. After investigation, they concluded that the generators, manufactured in 2000, had been previously purchased by others but never used. Fisk obtained different generators, which were accepted by the VA. In 2007, Reliable submitted a claim, seeking $1,100,000 for additional costs incurred as a result of rejection of the original generators. In 2013, the Board of Contract Appeals denied Reliable’s claim. The Federal Circuit vacated, holding that the Board erred in its interpretation of the contract. View "Reliable Contracting Grp., LLC v. Dep't of Veterans Affairs" on Justia Law

In 2010, while Kerner was an Evidence Custodian, GS-05, with the Department’s Fish and Wildlife Service, he applied for two vacancies: Wildlife Inspector, GS-09/11, and Wildlife Inspector, GS-11/11. Both positions were merit-promotion vacancies. Each required federal employee applicants to meet a time-in-grade requirement. A federal civil service applicant must have completed at least 52 weeks of experience equivalent to GS-07 to be qualified for the GS- 09 position, and at least 52 weeks of experience equivalent to GS-09 to be qualified for the GS-11 position. The vacancies also required one year of specialized experience in the federal civil service equivalent to GS-07 or GS-09, respectively. Kerner had no federal civil service experience at the GS-07 or GS-09 level and, therefore, did not meet the time-in-grade requirements. The Department determined that he did not qualify for either vacancy. Kerner then filed a Veterans Employment Opportunity Act claim with the Department of Labor, alleging that the Department violated his VEOA rights. The Department of Labor and Merit Systems Protection Board rejected the claim. The Federal Circuit affirmed. The provisions cited by Kerner only apply to preference-eligible veterans not already employed in federal civil service, not to current federal employees seeking merit promotions. View "Kerner v. Dep't of the Interior" on Justia Law

The Forest Service awarded EM Logging a timber sale contract for the Kootenai National Forest in Montana. The contract’s load limit clause states that “[a]ll vehicles shall comply with statutory load limits unless a permit from the Forest Service and any necessary State permits are obtained,” the haul route clause states that “[a]ll products removed from Sale Area shall be transported over the designated routes of haul” and a notification clause requires that “Purchaser shall notify Forest Service when a load of products … will be delayed for more than 12 hours in reaching weighing location.” The provision under which the Forest Service terminated the contract refers to: “a pattern of activity that demonstrates flagrant disregard for the terms of this contract.” The Forest Service issued multiple notifications of breach with respect to the clauses, suspended operations, and terminated the contract. The Federal Circuit reversed, finding that one instance of route deviation necessitated by illness, one load limit violation, and two instances of delayed notifications. None of the alleged violations independently substantiated the finding of flagrant disregard. Even together, the violations were not substantial evidence of a pattern of activity demonstrating that EM’s actions were in flagrant disregard of the contract. View "EM Logging v. Dep't of Agric." on Justia Law