Colorado Department of Human Services v. United States

74 Fed. Cl. 339, 2006 U.S. Claims LEXIS 373, 2006 WL 3488854
CourtUnited States Court of Federal Claims
DecidedNovember 30, 2006
DocketNo. 06-666C
StatusPublished
Cited by9 cases

This text of 74 Fed. Cl. 339 (Colorado Department of Human Services 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
Colorado Department of Human Services v. United States, 74 Fed. Cl. 339, 2006 U.S. Claims LEXIS 373, 2006 WL 3488854 (uscfc 2006).

Opinion

OPINION AND ORDER

GEORGE W. MILLER, Judge.

This matter is before the Court on plaintiffs’ motion for preliminary injunction of September 22, 2006, and on defendant’s motion to dismiss of October 13, 2006. Plaintiffs, Colorado Department of Human Services, Division of Vocational Rehabilitation (“Colorado DVR”) and Mr. Steven Rightsell, move for a preliminary injunction requiring certain action by the Air Force that plaintiffs contend is necessary to maintain the status quo pending the decision of an arbitration panel convened pursuant to the Randolph-Sheppard Act, 20 U.S.C. § 107 et. seq. Defendant, United States (“Government”), moves to dismiss for lack of subject matter jurisdiction, arguing that plaintiffs have not exhausted their administrative remedies, plaintiffs lack standing, and the case is not ripe for review. In addition, defendant contends that even if plaintiffs can satisfy the jurisdictional requirements, they have not demonstrated a substantial likelihood of success on the merits at arbitration.

[341]*341The Court concludes that Congress has provided a specific and comprehensive scheme for administrative and judicial review of claims, such as those asserted by plaintiffs, alleging violations of the Randolph-Sheppard Act. Under this scheme, a state licensing agency must pursue such claims before an arbitration panel followed by judicial review of the arbitration panel’s decision as a final agency action for the purposes of chapter 7 of Title 5 of the United States Code, ie., section 10 of the Administrative Procedure Act (“APA”), as amended. 20 U.S.C. § 107d-2(a) (2000). Because this Court lacks jurisdiction to review agency action under the APA, and in view of the specific and comprehensive statutory scheme established by Congress for resolving such claims, the Court GRANTS defendant’s motion to dismiss for lack of subject matter jurisdiction, and directs the Clerk to enter judgment dismissing plaintiffs’ complaint without prejudice.

BACKGROUND

The Randolph-Sheppard Act as amended gives blind vendors a priority to operate vending facilities on federal property. 20 U.S.C. § 107(b). By statute, the term “vending facility” includes “cafeterias.” Id. § 107e(7). Under the Randolph-Sheppard regulatory scheme, federal agencies contract with state licensing agencies and the state agencies, in turn, identify and assign qualified blind vendors to operate the facilities. 34 C.F.R. § 395.33 (2006).

The following facts are uncontested unless otherwise noted. In October of 1999, the Air Force awarded a contract under the Randolph-Sheppard program to Colorado DVR to operate the High Frontier Dining Facility (“cafeteria”) at Buckley Air Force base (“Buckley”) in Colorado. Compl. If 7. Colorado DVR, in turn, assigned Mr. Steven Right-sell to operate the cafeteria in October of 2005. Compl. 118. During the time that plaintiffs operated the cafeteria, it was funded through appropriated funds as part of a meal plan. D.’s Mot. at 3; Tr. of Oral Argument at 64-65, Oct. 26, 2006. Only military personnel and select civilians with meal cards could purchase food at the cafeteria. Hen-line Decl. at 1. Military personnel were permitted to opt out of the meal plan and such individuals instead received a meal stipend they could use to purchase food wherever they chose. Admin. R. at 86; Tr. of Oral Argument at 64-65.

In March of 2006, Colonel Oswaldo Mullins, Comptroller for the Air Force, issued a memorandum forecasting future budgetary reductions and directing all Air Force Space Command units, including Buckley, to review their current contracting activity with a view toward reducing the amount of money that the Air Force was spending on contracting. Admin. R. at 20-23. In response to this directive, Buckley officials identified contracts which they determined would have the “least effect” on the Air Force’s mission if eliminated. Admin. R. at 86. Overall, Buckley determined that it could reduce spending by $2.1 million by eliminating certain identified contracts, including the contract for the operation of the cafeteria which alone was projected to generate savings of $1.4 million. Admin. R. at 86. Accordingly, the Air Force notified Colorado DVR by letter dated July 25, 2006, that it did not intend to exercise any further options under the cafeteria contract and that the contract would thus expire by its terms on September 30, 2006. Admin. R. at 79. The Air Force represented that the closing was “due to lack of funding and not because of any other reason.” Admin. R. at 87.

Concurrent with its decision to allow the Colorado DVR contract to expire by its terms, the Air Force began to explore the idea of re-opening a dining facility in the same space using non-appropriated funds. Under the proposal, Air Force Services1 [342]*342would operate the facility on an “in-house” basis, i.e., with government employees. Admin. R at 169. The Air Force conducted focus groups and explored various concepts for the proposed dining facility. Admin. R. at 147-53. The Air Force considered concepts ranging from a “casual dining” restaurant and bar to what was described as a “food court.” Admin. R. at 32, 77, 94. The Air Force elected to proceed to the extent that it undertook planning to renovate the space and at one point estimated that the new facility would re-open on October 27, 2006.2 Admin. R. at 92.

After discovering the plans to re-open the space, Colorado DVR contacted the Air Force, advising it that Colorado DVR sought to invoke its statutory priority in the operation of the facility. Admin. R. at 81. Colorado DVR indicated that it was amenable to the Air Force’s proposed concepts and offered to operate what it understood to be a “sports bar” for the Air Force. Admin. R. at 81. Colorado DVR also indicated that it had available funds to assist the Air Force in paying for the facility renovations and for any necessary equipment. Admin. R. at 80-81. The Air Force responded to Colorado DVR’s letter on September 18, 2006, advising it that the planned facility

will not be a vending facility operation. This facility will be operated internally by the Services Division as a Nonappropriat-ed Fund (NAF) activity and will not be contracted out. NAF dollars are those generated locally through user fees, program fees and other resale operations.... As this is not a contract operation or a vending facility within the meaning of the provisions of the Randolph-Sheppard Act, the priorities of the act do not apply.

Admin. R. at 169.

On September 20, 2006, Colorado DVR formally requested that the Department of Education (“DOE”), the agency responsible for administering the Randolph-Sheppard Act, institute an arbitration to determine the applicability of the Randolph-Sheppard Act to the proposed operation of the new dining facility. Attach, to Compl. Plaintiffs filed this “bid protest” action on September 22, 2006, requesting that the Court enter a preliminary injunction requiring the Air Force to take action allegedly necessary to maintain the status quo “until such time as the Randolph-Sheppard arbitration ... is complete.” Pis.’ Mot. at 2.

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Bluebook (online)
74 Fed. Cl. 339, 2006 U.S. Claims LEXIS 373, 2006 WL 3488854, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colorado-department-of-human-services-v-united-states-uscfc-2006.