Bannum, Inc. v. United States

56 Fed. Cl. 453, 2003 U.S. Claims LEXIS 107, 2003 WL 21087110
CourtUnited States Court of Federal Claims
DecidedMay 8, 2003
DocketNo. 03-839 C
StatusPublished
Cited by27 cases

This text of 56 Fed. Cl. 453 (Bannum, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bannum, Inc. v. United States, 56 Fed. Cl. 453, 2003 U.S. Claims LEXIS 107, 2003 WL 21087110 (uscfc 2003).

Opinion

OPINION AND ORDER

HEWITT, Judge.

This pre-award bid protest action comes before the court on Plaintiffs Motion for Temporary Restraining Order and Preliminary Injunction (TRO Mot. or TRO Motion). Plaintiff, Bannum, Inc. (Bannum), protests the failure of the Bureau of Prisons (BOP) to award a contract to operate a Community Correction Center (CCC) in Beaumont, Texas, in a timely manner. Complaint (Compl.) 111. For the following reasons, the court DENIES plaintiffs motion.

The complaint was filed on April 28, 2003. During a telephonic status conference held on April 28, 2003, the court set a hearing on this matter for the morning of April 30, 2003, and invited the parties to submit additional briefing at any time up to the beginning of the hearing. Plaintiff submitted additional briefing on April 29, 2003. Plaintiffs Supplemental Memorandum of Law in Support of Plaintiffs Motion for Temporary Restraining Order and Preliminary Injunction (PL’s Supp.). Defendant submitted additional briefing on the morning of April 30, 2003, in the form of Defendant’s Opposition to Plaintiffs Motion for a Temporary Restraining Order (Def.’s Opp.), to which it attached a declaration of Ms. Catherine Mains. At the hearing, the court heard oral argument and the testimony of two witnesses, Mr. David Lowry, executive director of Bannum, Inc., Transcript of Hearing held April 30, 2003(Tr.) at 32-33, and Mr. William L. Will-ingham, a retired official of the Bureau of Prisons. Tr. at 116-17. The court also received twelve exhibits1 and accepted as true [455]*455for the purposes of this decision a proffer of telephonic testimony from a third witness, Mr. Donald Holt, the director of Bannum’s Beaumont facility, Tr. at 99, in support of plaintiffs motion for injunctive relief.2

At the conclusion of the hearing, the court issued a bench ruling denying plaintiffs motion. Tr. at 158-62. This opinion states in further detail the grounds for the bench ruling and, in any respect inconsistent with the bench ruling, shall be deemed to supercede the bench ruling. At the hearing, the court also heard argument as to whether, if injunc-tive relief were denied, the complaint should be dismissed. Tr. at 150-52, 156-57. In its bench ruling, the court stated that it would determine whether, in light of the court’s denial of injunctive relief, the complaint should be dismissed. Tr. at 149-50.

1. Background

When Bannum filed its complaint on April 28, 2003, it was the incumbent contractor on a CCC contract to operate a halfway house in Beaumont, Texas. Compl. H 6. The incumbent contract was originally scheduled to expire on October 31, 2002. Declaration of Catherine Mains (Mains Deck) 118. The BOP invoked its option to extend the contract for a period of 180 days, leading to the termination of the contract on April 30, 2003. Id. Defendant issued Request for Proposals No. 200-0722-SC (RPP) on November 27, 2001, for a follow-on contract for CCC services in the Beaumont, Texas area. Compl. H 7.

The source selection process has been long and drawn out, with at least two potential offerors, including Bannum, changing plans mid-stream. Tr. at 52, 108. Plaintiffs original plan was to operate a new facility in Beaumont (referred to in testimony as the “Broadway” site). Tr. at 37. In order to operate the Broadway site, however, plaintiff was required to obtain zoning approval. Tr. at 39. The quest for zoning approval became problematic. Tr. at 62-63. After its application for zoning approval was rejected, plaintiff decided to change its proposal to continue operation at its existing Pennsylvania Avenue site. Tr. at 52; see also Compl. H 6. At least one other offeror for this project also changed its proposed site prior to the due date for best and final offers. Tr. at 108.'

Plaintiff contends that “the BOP is purposely unreasonably delaying the award of the contract so that Bannum will be eliminated from the competitive range by the loss of its zoning and facility rights, and so the BOP can then direct the award of the contract to [another offeror].” Compl. H14. According to plaintiff, defendant has “not fairly and honestly considered Bannum’s proposal, and has no intention of awarding the follow-on contract to Bannum.” Id. The current contract, and Bannum’s lease for its CCC facility, both terminate on April 30, 2003. Tr. at 107; Compl. 1112.

[456]*456Plaintiff in this case seeks two alternative injunctive measures. First, plaintiff seeks “an order compelling defendant to make an award decision on the contract before April 30, 2003.” Compl. at 8. Second, “plaintiff seeks a temporary restraining order from the Court to compel defendant to maintain the status quo with respect to the residents at Bannum’s Beaumont CCC facility until a contract award has been made, through the issuance of a purchase order to plaintiff for temporary CCC services at its present facility in Beaumont pursuant to ‘unusual and compelling urgency[.]’ ” Compl. at 8.

II. Plaintiff’s Motion for Temporary Restraining Order

A. Standard of Review

The court will grant injunctive relief if a plaintiff meets a four-part test: (1) a specific, irreparable injury if the court does not enjoin contract performance; (2) a substantial likelihood of success on the merits; (3) the harm to plaintiff outweighs the harm to defendant; and (4) preliminary relief is in the public interest. 11A Charles Alan Wright, Arthur R. Miller, & Mary Kay Kane, Federal Practice and Procedure (Wright & Miller) § 2948 (1995); W & D Ships Deck Works, Inc. v. United States, 39 Fed.Cl. 638, 647 (1997) (“When deciding if a TRO is appropriate in a particular case, a court uses the same four-part test applied to motions for a preliminary injunction.”). A TRO or preliminary injunction is “an extraordinary and drastic remedy, one that should not be granted unless the movant, by a clear showing, carries the burden of persuasion.” 11A Charles Alan Wright, Arthur R. Miller & Mary Kay Kane, § 2948. Courts reviewing the award of government contracts under the so-called Scanwell jurisdiction, Scanwell Labs., Inc. v. Shaffer, 424 F.2d 859 (D.C.Cir.1970), advised a stringent application of judicial restraint in the grant of injunctive relief, particularly with respect to the court’s determination of plaintiffs likelihood of success on the merits. Princeton Combustion Research Labs., Inc. v. McCarthy, 674 F.2d 1016, 1019 (3d Cir. 1982); Saco Defense Sys. Div., Maremont Corp. v. Weinberger, 606 F.Supp. 446, 450 (D.Me.1985). This advice seems particularly apt where, as here, the agency action is accorded the deference of review under the standards set forth in the Administrative Procedure Act. 28 U.S.C. § 1491(b)(4) (“In any action under this subsection, the courts shall review the agency’s decision pursuant to the standards set forth in section 706 of title 5.”)

B. Application of Test for Injunctive Relief to Plaintiffs Claim
1. Irreparable Injury

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Bluebook (online)
56 Fed. Cl. 453, 2003 U.S. Claims LEXIS 107, 2003 WL 21087110, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bannum-inc-v-united-states-uscfc-2003.