Coastal Environmental Group, Inc. v. United States

114 Fed. Cl. 124, 2013 WL 6913251
CourtUnited States Court of Federal Claims
DecidedJanuary 6, 2014
Docket13-71C
StatusPublished
Cited by20 cases

This text of 114 Fed. Cl. 124 (Coastal Environmental Group, 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
Coastal Environmental Group, Inc. v. United States, 114 Fed. Cl. 124, 2013 WL 6913251 (uscfc 2014).

Opinion

OPINION AND ORDER

SWEENEY, Judge

This postaward bid protest concerns the award of a soil remediation contract. In its initial complaint, plaintiff contended that the contracting officer improperly awarded the contract to another bidder despite her beliefs that the awardee’s bid was nonresponsive and that the awardee was not responsible. After plaintiff filed its protest, the government terminated the awardee’s contract for its convenience and cancelled the procurement. Arguing that plaintiff’s protest is now moot, defendant moves to dismiss plaintiffs complaint for lack of jurisdiction. Plaintiff opposes the dismissal of its complaint, asserting that the cancellation of the procurement did not divest the court of jurisdiction. Plaintiff also moves for leave to amend its complaint to challenge the government’s cancellation decision. For the reasons set forth below, the court will permit plaintiff to amend its complaint, but dismisses as moot plaintiffs claim that the contracting officer improperly awarded the contract to another bidder.

I. BACKGROUND

On March 29, 2012, the United States Environmental Protection Agency (“EPA”) issued an invitation for bids (“IFB”) to remediate the soil on as many as 2,600 residential properties in Omaha, Nebraska. 1 The EPA contemplated awarding a fixed-price, indefinite-quantity contract to the lowest bidder who was deemed to be responsible and who submitted a responsive bid. The base period of the contract was to be one year, followed by three one-year option periods. Bidders were required to submit, among other materials, resumes for key personnel that reflected the specific experience identified in the IFB. The EPA emphasized the importance of the experience and qualifications of key personnel, and declared that a bid that did not identify key personnel who had the requisite experience and qualifications would be deemed to be nonresponsive.

At least two companies submitted bids: plaintiff and PK Management Group, Inc. (“PK”). PK was the low bidder, with a total bid price of $23,897,255. Plaintiff, with a total bid price of [...], was the next lowest bidder. Upon reviewing PK’s bid, however, the contracting officer concluded that PK did not meet the IFB’s requirements because it lacked relevant experience, its subcontractors lacked relevant experience, and the resumes of its key personnel did not reflect the required experience. The contracting officer *128 therefore found that PK was not a responsible bidder.

Because the contract was set aside for a small business, the contracting officer was required to refer the issue of PK’s responsibility to the United States Small Business Administration (“SBA”) for evaluation in the SBA’s Certificate of Competency program. In the referral, the contracting officer did not address whether PK submitted a responsive bid. On June 22, 2012, the SBA issued a Certificate of Competency to PK and notified the EPA that it considered PK to be a responsible bidder. The SBA advised the EPA that the EPA was required to award the contract to PK. The contracting officer disagreed with the SBA’s responsibility determination, and filed an appeal with the SBA. The contracting officer once again did not address whether PK submitted a responsive bid. The SBA denied the appeal, leading the contracting officer to award the contract to PK in September 2012.

Shortly thereafter, plaintiff protested the EPA’s award decision at the Government Accountability Office (“GAO”), arguing that PK’s bid was nonresponsive due to the nonconforming key personnel resumes and that the SBA was not legally permitted to make a responsibility determination if a bidder submitted a nonresponsive bid. PK’s performance of the contract was stayed during the pendency of the GAO protest. The GAO ultimately denied the protest on January 14, 2013. Two weeks later, on January 29, 2013, plaintiff filed the instant protest, setting forth two counts in its complaint: (1) the EPA’s award of the contract to a bidder with a nonresponsive bid was arbitrary and capricious and (2) the SBA’s determination that PK was a responsible bidder in the absence of any finding that PK submitted a responsive bid was arbitrary and capricious. Plaintiff sought the following relief: (1) an injunction forbidding further performance of the

contract; (2) a declaration that the contract awarded to PK was null and void; (3) termination of the contract; (4) an injunction requiring the contract be awarded to plaintiff as the next lowest bidder; (5) attorney’s fees and costs; and (6) any other relief deemed just and equitable.

During a January 30, 2013 status conference, defendant represented that the EPA would agree to stay PK’s performance of the contract pending an expedited ruling from the court on the merits of plaintiffs protest. Pursuant to the expedited briefing schedule, plaintiff filed a motion for judgment on the administrative record on February 22, 2013. Then, on March 5, 2013, three days before its response and cross-motion were due, defendant filed a notice with the court indicating that the EPA intended to terminate its contract with PK for its convenience and conclude the procurement. 2 Defendant further noted that the EPA would then reassess its needs for the soil remediation work that was the subject of the procurement. Based on these representations, defendant stated that it intended to move to dismiss the protest as moot.

The EPA terminated its contract with PK on March 11, 2013. That same day, defendant moved to dismiss this protest as moot pursuant to Rule 12(b)(1) of the Rules of the United States Court of Federal Claims (“RCFC”). Plaintiff opposed the motion. On July 9, 2013, after briefing had concluded, defendant filed another notice with the court indicating that because federal government sequestration had decimated the EPA’s budget and forced it to furlough its employees, the EPA decided to satisfy its remediation needs through existing contracts. As a result, defendant stated, the EPA would change the scope of the work that was the subject of the procurement at issue in this protest from remediation to the seeming of property access agreements. The new con *129 tract, worth $800,000, would be set aside for a small business.

Upon receiving defendant’s notice, the court directed the parties to file supplemental briefs addressing what effect, if any, the information contained in the notice had on the positions they advanced in them briefing on defendant’s motion to dismiss. Rather than filing a supplemental brief, defendant filed a renewed motion to dismiss. Shortly after the conclusion of briefing on the renewed motion to dismiss, proceedings in the protest were stayed for twenty-three days at defendant’s request. 3 Subsequently, pursuant to a schedule proposed by the parties, plaintiff moved for leave to file an amended complaint on November 4, 2013. The parties have completed briefing on plaintiffs motion, and, finding oral argument unnecessary, the court is prepared to rale.

II. DISCUSSION

A. Defendant’s Motions to Dismiss

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Bluebook (online)
114 Fed. Cl. 124, 2013 WL 6913251, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coastal-environmental-group-inc-v-united-states-uscfc-2014.