CNA Corp. v. United States

81 Fed. Cl. 722, 2008 U.S. Claims LEXIS 121, 2008 WL 1956260
CourtUnited States Court of Federal Claims
DecidedApril 30, 2008
DocketNo. 08-249C
StatusPublished
Cited by6 cases

This text of 81 Fed. Cl. 722 (CNA Corp. 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
CNA Corp. v. United States, 81 Fed. Cl. 722, 2008 U.S. Claims LEXIS 121, 2008 WL 1956260 (uscfc 2008).

Opinion

OPINION

HORN, Judge.

FINDINGS OF FACT

Plaintiff CNA Corporation (hereafter, CNAC) filed the current pre-award bid pro[723]*723test, based on the United States Department of Health and Human Services (HHS) Request for Proposals No. NIH-NICHD-NCS-08-21 E (2008 RFP), for the Montgomery County, Maryland Study Center location of the National Children’s Study (NCS). The National Children's Study is a long-term study to assess the effect of environmental exposures on children’s health and development from before birth to age 21. See Children’s Health Act of 2000, Pub.L. No. 106-310, § 1004, 114 Stat. 1101, 1130-31 (2000). In 2005, the contract for the NCS Coordinating Center was awarded, along with contracts for seven of the 105 projected study locations. In 2007, awards were made for 22 contracts. The 2008 solicitation projects awards of up to 58 more contracts. CNAC bid for one of the contracts for Montgomery County, Maryland in the 2007 solicitation and has indicated its interest to bid on the 2008 solicitation. HHS issued an ethics decision that CNAC’s proposed Principal Investigator for the Montgomery County, Maryland Study Contract, Dr. Sarah L. Friedman, was barred from acting as a Principal Investigator on the 2007 contract (an earlier, very similar contract solicitation to the one at issue in the case currently before the court) due to the post-employment restrictions of 18 U.S.C. § 207 (2000) and her former government employment. The HHS ethics opinion also indicated that Dr. Friedman most likely would be barred from any future NCS contract as well.

The earlier, post-award protest (No. 07-858C), which will be referred to as CNAC I, was filed by CNAC when HHS refused to award an NCS study contract to CNAC pursuant to a 2007 solicitation. The HHS refusal was based on CNAC’s proposal of Dr. Friedman as its Principal Investigator. After reviewing the record submitted, including an ethics opinion in the record regarding post-employment restrictions for Dr. Friedman in the earlier, 2007 bid protest, the court concluded that:

[Djefendant acknowledged and the court concludes that, in rendering the adverse ethics decision on Dr. Sarah Friedman’s proposed participation as plaintiffs Principal Investigator for the contract at issue, which is at the heart of this case, the agency did not provide the specific statutory basis for its decision; the agency did not consider the impact of the pertinent regulations and other pertinent matters before making its ethics decision; the agency did not provide a reasonable basis for its adverse ethics decision; the administrative record, compiled and submitted by the agency, is inadequate to have supported a full and complete ethics review of Dr. Friedman; and the agency did not afford plaintiff a meaningful opportunity to respond to its adverse ethics ruling. The court concludes that the agency’s adverse ethics decision on Dr. Friedman’s proposed participation in the contract at issue is arbitrary and without apparent rational basis.
[T]he weight of the admissions by defendant as to the inadequacy of the decision making process, the filed administrative record complied by the defendant and the absence in the filed record of sufficient indication or documentation to support proper administrative review, directs the court to a finding that the agency, NIH, acted arbitrarily and capriciously when it found Dr. Friedman ineligible to participate as the Principal Investigator in a contract award to the plaintiff. The agency conducted an inadequate review of the important ethics issues presented and failed to properly document even the minimal review steps it undertook.

CNA Corp. v. United States (CNAC I), No. 07-858C, Order at 1, 2-3 (Fed.Cl. Jan. 3, 2008).

In CNAC I, the court vacated the agency’s initial, adverse ethics decision on Dr. Friedman, and directed the agency to conduct a reconsideration of its decision:

Dr. Friedman, and plaintiff, deserve a properly conducted ethics review by the agency. The impact of the decision to bar Dr. Friedman from participation as plaintiffs Principal Investigator is especially compelling given statements made by government officials, and acknowledged by defendant’s counsel and agency personnel in [724]*724the hearings before the court, that plaintiff CNA Corporation had been recommended for an award for the Montgomery County [Maryland] study contract, pending only the issue of the eligibility of Dr. Friedman as plaintiffs Principal Investigator, given her previous employment at NIH.

CNAC I, No. 07-858C, Order at 3 (Fed.Cl. Jan. 3, 2008).

In response to the court’s January 3, 2008 Order, the HHS contracting officer for the 2007 RFP, Elizabeth Osinski, in a March 19, 2008 letter to CNAC, reaffirmed her decision to exclude Dr. Friedman and, therefore, CNAC, from consideration for a 2007 study award. She added the following words with respect to the 2008 RFP for the National Children’s Study:

With respect to the forthcoming solicitation Reference-Number-NIH-NICHD-NCS-08-21 (2008 RFP), I advise you that the 2008 RFP does not materially differ from the 2007 RFP with respect to Dr. Friedman’s eligibility under 18 U.S.C. § 207(a)(1) to serve as principal investigator. Accordingly, I would anticipate the same determination with respect to Dr. Friedman under the 2008 RFP as under the 2007 RFP.

The same day, March 19, 2008, that contracting officer Osinski issued her letter to CNAC on Dr. Friedman’s post-employment restrictions, the 2008 RFP was issued, soliciting proposals for NCS Study Centers, including the one for Montgomery County, Maryland in which CNAC is interested.1 Study proposals in response to the 2008 RFP are due at the agency May 2, 2008.

Ms. Osinski enclosed with her letter to CNAC a 15-page memorandum, dated March 18, 2008, from Edgar M. Swindell, the HHS Designated Agency Ethics Official, which concluded that, if Dr. Friedman made the “communications and appearances” to the agency expected of the Principal Investigator position, she would be in violation of 18 U.S.C. § 207. Mr. Swindell indicated that “given the same facts and absent significant changes in OGE’s [Office of Government Ethics] interpretation, we would expect to reach the same conclusions regarding Dr. Friedman’s participation in a particular matter involving specific parties in relation to the fiscal year 2008 procurement.”

In the current bid protest regarding the 2008 contract solicitation, CNAC seeks to set aside the decision of the HHS contracting officer to exclude CNAC from the NCS procurement, based on the HHS ethics evaluation adverse to Dr. Friedman, and a permanent injunction prohibiting NIH from awarding the Montgomery County, Maryland Study Contract to any offeror other than CNAC, or a directed award of the Montgomery County Study Center to plaintiff. Defendant defends the merits of the HHS ethics decision and the exclusion of CNAC with Dr. Friedman as the Principal Investigator from the NCS as reasonable. Defendant also argues that CNAC has no standing to bring the protest and that the bid protest is not ripe for review by this court.

Dr.

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Bluebook (online)
81 Fed. Cl. 722, 2008 U.S. Claims LEXIS 121, 2008 WL 1956260, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cna-corp-v-united-states-uscfc-2008.