Can Softtech, Inc v. United States

United States Court of Federal Claims·Decided January 2, 2025·No. 24-1009·Published

Opinion

IN THE UNITED STATES COURT OF FEDERAL CLAIMS

)

CAN SOFTTECH, INC., )

)

Plaintiff, ) No. 24-1009 )

v. ) Filed: December 20, 2024 )

THE UNITED STATES, ) Re-issued: January 2, 2025 ∗ )

Defendant. )

______________________________________ )

OPINION AND ORDER

Plaintiff CAN Softtech, Inc. (“CSI”) seeks reconsideration of the Court’s October 1, 2024, Opinion and Order granting in part and denying in part CSI’s Motion to Complete the Administrative Record. After thorough review, the Court concludes that CSI has failed to show that the Court’s Opinion and Order contravened binding circuit precedent, that the Court erred by relying on persuasive out-of-circuit authority, or that the presumption of regularity and completeness should not apply to the Government’s designation of the Administrative Record. Accordingly, the Court DENIES CSI’s Motion for Reconsideration.

I. BACKGROUND

CSI’s bid protest challenges the General Services Administration’s (“GSA”) decisions to take corrective action in the procurement at issue and, subsequently, to terminate the contract award to CSI, extend the incumbent contract on a sole-source basis, and issue an amended solicitation. See Op. & Order at 1–3, ECF No. 34. The instant dispute concerns CSI’s challenge

∗ The Court issued this opinion under seal on December 20, 2024, and directed the parties

to file any proposed redactions by December 27, 2024. As the parties did not propose any redactions, the Court reissues the opinion publicly in full.

to the completeness of the Administrative Record filed by the Government in this action. 1 See Mot. to Complete, ECF No. 18.

The Court largely denied CSI’s Motion to Complete. See generally ECF No. 34. It explained that because bid protests are reviewed pursuant to the standards set forth in the Administrative Procedure Act (“APA”), the Court must apply the appropriate APA standard of review to GSA’s procurement decisions “based on the record the agency presents” to the Court. Axiom Res. Mgmt., Inc. v. United States, 564 F.3d 1374, 1379 (Fed. Cir. 2009) (emphasis in original) (citing Fla. Power & Light Co. v. Lorion, 470 U.S. 729, 743–44 (1985)); see ECF No. 34 at 4. That limitation—from which flow the standards governing motions to complete or supplement an administrative record—avoids converting the APA’s “‘arbitrary and capricious’ standard into effectively de novo review.” ECF No. 34 at 4 (quoting Axiom, 564 F.3d at 1380). Because the Government is responsible for compiling the administrative record for judicial review in an APA-review case (like a bid protest), and its designation of the record is entitled to a presumption of regularity, the burden is on the opposing party to show by clear evidence that the Government either omitted information that was considered by the agency during the decision- making process or, in the case of a motion to supplement, that inclusion of extra-record evidence is necessary to effectuate meaningful judicial review. See id. at 4–5; see also Axiom, 564 F.3d at 1379–80 (noting that APA standards govern the scope of the administrative record in a bid protest);

1 Specifically, CSI sought to complete the record with three broad categories of documents:

(1) “[i]nternal correspondence, including emails and memoranda, that reflect GSA’s contemporaneous decision-making in announcing corrective action in response to [the incumbent contractor’s administrative] protest;” (2) “[i]nternal correspondence, including emails and memoranda, that reflect GSA’s contemporaneous decision-making leading to its decision to terminate CSI’s Contract and to produce the D&F Memo;” and (3) “[d]ocuments reflecting proposed revisions of the Solicitation and/or GSA’s effort to effect the changes suggested in the D&F Memo.” Mot. to Complete, at 5–6, ECF No. 18.

Camp v. Pitts, 411 U.S. 138, 142 (1973) (holding that in an APA case the “focal point for judicial review should be the administrative record already in existence”); Poplar Point RBBR, LLC v. United States, 145 Fed. Cl. 489, 494 (2019) (“Ordinarily, the government’s designation of an administrative record is entitled to a presumption of completeness; however, courts have recognized that this can be rebutted by clear evidence to the contrary.”); see also Bar MK Ranches v. Yuetter, 994 F.2d 735, 740 (10th Cir. 1993) (“The court assumes the agency properly designated the Administrative Record absent clear evidence to the contrary.”).

Applying those standards, the Court denied in large part CSI’s broad requests to complete the Administrative Record because CSI failed to provide clear evidence that the Government improperly withheld documents that should be part of the record. 2 ECF No. 34 at 12. In particular, it held that the documents CSI sought were “prototypically pre-decisional and deliberative,” id., and as facially privileged documents they were not properly considered part of the record, id. at 6–9. The Court further rejected CSI’s contention that the Government must meet certain procedural requirements to invoke privileges over documents not included in the record. Id. Finally, the Court found that CSI’s pretext allegations were not sufficiently supported by the record evidence. Id. at 13–15.

On October 17, 2024, CSI filed a Motion for Reconsideration of the Court’s Opinion and Order. See ECF No. 36. CSI argues that the Court (1) failed to cite or apply controlling precedent from the United States Court of Appeals for the Federal Circuit, (2) erred by relying on persuasive

2 The Court found that CSI provided evidence that one document—a draft memorandum apparently documenting alleged Procurement Integrity Act (“PIA”) violations (“Attachment 1”)— had been improperly withheld because that document appeared to contain some non-privileged information that GSA indirectly considered during the decision-making process leading up to the contract termination. ECF No. 18 at 16. Thus, the Court granted CSI’s Motion in part and ordered the Government to submit the document for in camera review to determine whether it should be included in the Administrative Record. See id. at 16–17.

out-of-circuit authority, and (3) had no reasonable basis for deferring to the presumption of completeness that applies to the Administrative Record. Id. at 6–8. After review, the Court determines that CSI has not provided any reason, let alone a reason sufficient under Rule 54(b) of the Rules of the United States Court of Federal Claims (“RCFC”), to reconsider its earlier Opinion and Order.

II. LEGAL STANDARDS

RCFC 54(b) governs the reconsideration of interlocutory orders in the Court of Federal Claims. See Capstone Associated Servs., Ltd. v. United States, No. 21-0913, 2023 WL 5624480, at *3 (Fed. Cl. Aug. 31, 2023). In relevant part, RCFC 54(b) provides that “any order or other decision” that “adjudicates fewer than all the claims or the rights and liabilities of fewer than all the parties does not end the action” and “may be revised at any time before the entry” of final judgment. RCFC 54(b). Reconsideration is not intended to “give an unhappy litigant an additional chance to sway the court.” Martin v. United States, 101 Fed. Cl. 664, 671 (2011) (internal quotations omitted) (quoting Matthews v. United States, 73 Fed. Cl. 524, 525 (2006)). Rather, reconsideration is available “as justice requires,” Sacramento Grazing Ass’n v. United States, 154 Fed. Cl. 769, 778–79 (2021), which typically means that the court “patently misunderstood a party;” “made a decision outside the adversarial issues” that the parties presented to the court; “made an error not of reasoning, but of apprehension;” or that “controlling or significant” changes in the law or facts have occurred since the issue was submitted to the Court. L-3 Commc’ns Integrated Sys., L.P. v. United States, 98 Fed. Cl. 45, 49 (2011) (quoting Potts v. Howard Univ. Hosp., 623 F. Supp. 2d 68, 71 (D.D.C. 2009)).

III. DISCUSSION

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