A.C. Seeman, Inc. v. United States

32 Cont. Cas. Fed. 72,679, 5 Cl. Ct. 386, 1984 U.S. Claims LEXIS 1382
CourtUnited States Court of Claims
DecidedJune 27, 1984
DocketNo. 309-84C
StatusPublished
Cited by22 cases

This text of 32 Cont. Cas. Fed. 72,679 (A.C. Seeman, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A.C. Seeman, Inc. v. United States, 32 Cont. Cas. Fed. 72,679, 5 Cl. Ct. 386, 1984 U.S. Claims LEXIS 1382 (cc 1984).

Opinion

MEMORANDUM OF DECISION

HARKINS, Judge.

Plaintiff’s claim, filed June 15, 1984, sought injunctive and declaratory relief under 28 U.S.C. § 1491(a)(3) (1982) with respect to a solicitation from the Department of the Navy, Navy Facilities Engineering Command, Chesapeake Division, for a contract for alterations and improvements to the boat basin at the U.S. Naval Station, Annapolis, Maryland. (Solicitation No. N62477-81-B-0489). The procurement was a “set aside” for small business, with a designated size standard of $12 million average annual receipts for the preceding three fiscal years (aar). Plaintiff was the lowest bidder; the second lowest bid was submitted by Interstate-Feezer, a joint venture (I-F). After I-F challenged plaintiff’s small business status, the SBA regional office determined plaintiff was a small business concern for procurements having a size standard of $12 million. I-F appealed, and the SBA Office of Hearings and Appeals reversed, on findings that the appeal was timely filed and that plaintiff’s affiliation with William F. Wilke, Inc. resulted in an identity of interests and a size in excess of the $12 million standard. (SBA No. SIZ-84-04-30-081).

On June 14, 1984, plaintiff filed an action in the United States District Court for the District of Maryland that challenged the SBA determination and sought injunctive and declaratory relief. During a conference with respect to plaintiff’s motion in that court for a temporary restraining order, it was determined that the Navy would not award a contract on the solicitation prior to June 26, 1984.

In this court, with its complaint, plaintiff on June 15, 1984, filed a motion for a preliminary injunction. In conferences on June 18 and 19, 1984, counsel agreed to a briefing schedule and a hearing at 2 p.m., June 22, 1984. On June 21, 1984, defendant filed a motion to dismiss, or in the alternative, for summary judgment, and an opposition to plaintiff’s motion for injunctive relief. On June 22, 1984, after argument on the motions, defendant’s motion to dismiss was allowed, and by separate order the complaint was dismissed for lack of jurisdiction under 28 U.S.C. § 1500 (1982). The grounds for the ruling were given at the hearing, and counsel were advised that, in further explanation, a memorandum of decision subsequently would be filed.

Plaintiff’s motion for a preliminary injunction asserts that the regulations of both the Navy and SBA applicable to disposition of size protests have been violated, DAR § l-703(b)(4) and 13 C.F.R. § 121.-11(e)(2), § 121.11(f) and that the SBA determination that I-F’s protest was timely is arbitrary, capricious and without rational basis. Plaintiff challenges the SBA determination that it was affiliated with William F. Wilke, Inc. as being contrary to fact and the product of erroneous application of [388]*388SBA procedural regulations. 13 C.F.R. § 121.11(h).

Defendant’s motion to dismiss asserts (1) that the Claims Court equitable jurisdiction under 28 U.S.C. § 1491(a)(3) applies only to contracting officers, or officials of the contracting agency; (2) that the relief sought by plaintiff amounts to an injunction directed at the SBA determination, and that this court lacks equitable jurisdiction to enjoin SBA; and (3) that 28 U.S.C. § 1500 precludes jurisdiction in this court.

At the June 22, 1984, hearing, it became clear that plaintiff’s claim had been filed in the district court before it was filed in the Claims Court, and that the district court case was pending, both when the Claims Court complaint was filed and at the time of the hearing.

Defendant’s assertions (1) that plaintiff’s claim was beyond the scope of the implied-in-fact contract that is the basis of this court’s pre-award contract jurisdiction, and (2) that this court has no jurisdiction to review SBA size determinations by virtue of the provisions of the Small Business Act (15 U.S.C. § 634(b)(1) (1982)) were found to lack merit. This court has jurisdiction to grant equitable relief under 28 U.S.C. § 1491(a)(3) on a “contract claim” brought “before the contract is awarded.” Plaintiff’s complaint was filed before contract award, and this requirement is satisfied by the facts in this case. United States v. Grimberg Co., 702 F.2d 1362 (Fed.Cir.1983); CACI, Inc. v. United States, 719 F.2d 1567, 1572-73 (Fed.Cir.1983).

A “contract claim” arises from the implied-in-fact contract that exists by virtue of the bid solicitation process which guarantees that responsive bids will be fully and fairly considered. The implied-in-fact contract that arises out of the bid solicitation-process, and the guarantee to the bidder, includes the requirement that there be compliance with the procurement regulations applicable to the particular solicitation involved and recognition of applicable statutory criteria. The nature and content of the obligations inherent in the bid protest implied contract have been illuminated by the Federal Circuit. Electro-Methods, Inc. v. United States, 728 F.2d 1471, 1475 (Fed. Cir.1984); ATL, Inc. v. United States, 736 F.2d 677 at 681-82 (Fed.Cir.1984) (ATL I).

Defendant would exclude, as beyond this court’s jurisdiction, compliance with statutory and regulatory criteria that govern SBA size determinations in a procurement designated as a small business set aside. These regulations directly impact on the procurement, and inherently are parts of the procurement. An essential element of every compensable contract claim is a requirement that the contract accord with applicable law. The purpose of the Navy and SBA regulations relative to size determinations for small business set asides is to provide a vehicle for this type of procurement. Their provisions have the force and effect of law and are implied terms in the implied contract to consider plaintiff’s bid fairly. Christian & Assoc. v. United States, 312 F.2d 418, 160 Ct.Cl. 1 (1963). This court’s jurisdiction under 28 U.S.C. § 1491(a)(3) would include, in an appropriate case, the power to enjoin a contract if the basis for such award is the product of substantial violations of the applicable Navy or SBA regulations that directly impact the procurement.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Lower Brule Sioux Tribe v. United States
102 Fed. Cl. 421 (Federal Claims, 2011)
Low v. United States
90 Fed. Cl. 447 (Federal Claims, 2009)
Griffin v. United States
85 Fed. Cl. 179 (Federal Claims, 2008)
Yankton Sioux Tribe v. United States
84 Fed. Cl. 225 (Federal Claims, 2008)
Passamaquoddy Tribe v. United States
82 Fed. Cl. 256 (Federal Claims, 2008)
Tohono O'Odham Nation v. United States
79 Fed. Cl. 645 (Federal Claims, 2007)
Harbuck v. United States
58 Fed. Cl. 266 (Federal Claims, 2003)
Keene Corp. v. United States
508 U.S. 200 (Supreme Court, 1993)
Keene Corp. v. United States
28 Fed. Cl. 2035 (Federal Circuit, 1993)
Glick v. United States
25 Cl. Ct. 435 (Court of Claims, 1992)
Fadem v. United States
13 Cl. Ct. 328 (Court of Claims, 1987)
Keene Corp. v. United States
12 Cl. Ct. 197 (Court of Claims, 1987)
Ireland v. United States
11 Cl. Ct. 543 (Court of Claims, 1987)
Ulstein Maritime, Ltd. v. United States
646 F. Supp. 720 (D. Rhode Island, 1986)
Hill v. United States
8 Cl. Ct. 382 (Court of Claims, 1985)
Dwyer v. United States
7 Cl. Ct. 565 (Court of Claims, 1985)
Martin v. United States
7 Cl. Ct. 287 (Court of Claims, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
32 Cont. Cas. Fed. 72,679, 5 Cl. Ct. 386, 1984 U.S. Claims LEXIS 1382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ac-seeman-inc-v-united-states-cc-1984.