Crowley Government Services, Inc. v. General Services Administration

CourtDistrict Court, District of Columbia
DecidedOctober 22, 2021
DocketCivil Action No. 2021-2298
StatusPublished

This text of Crowley Government Services, Inc. v. General Services Administration (Crowley Government Services, Inc. v. General Services Administration) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Crowley Government Services, Inc. v. General Services Administration, (D.D.C. 2021).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

CROWLEY GOVERNMENT SERVICES, INC.,

Plaintiff, Civil Action No. 21-2298 (BAH) v. Chief Judge Beryl A. Howell GENERAL SERVICES ADMINISTRATION, et al.,

Defendants.

MEMORANDUM OPINION

Plaintiff Crowley Government Services, Inc. (“Crowley”) brings this action against the

General Services Administration and its Administrator (collectively, “GSA”), seeking equitable

relief to stop GSA’s alleged ongoing practice of interfering with payments due plaintiff pursuant

to a contract with the U.S. Transportation Command (“USTRANSCOM”), a unit of the

Department of Defense. Compl. ¶¶ 1–11, ECF No. 1. GSA is not a party to the contract

underlying this dispute, id. ¶ 40, but in performing its auditing function has adopted and persists

in applying a different interpretation of plaintiff’s contract than that of the actual contracting

party USTRANSCOM, id. ¶¶ 40–69, leaving plaintiff in the difficult and expensive circumstance

of performing under the contract but without getting paid the amounts that both contracting

parties apparently believe to be owed.

Plaintiff seeks an order preliminarily enjoining defendants from “auditing invoices

submitted by Crowley to [USTRANSCOM] under Crowley’s contract with USTRANSCOM”

and “to the extent GSA has any authority to audit Crowley’s invoices, making audit

determinations regarding the validity of those invoices that are inconsistent with the Contracting

Officer’s final and conclusive decisions regarding the interpretation of the contract and

1 Crowley’s performance under the contract.” Pl.’s Mot. Prelim. Inj. (“Pl.’s Mot.”) at 1–2, ECF

No. 9. In response, GSA moves to dismiss the case, pursuant to Federal Rules of Civil

Procedure 12(b)(1) and 12(b)(6), contending that “this Court lacks jurisdiction over Plaintiff’s

claims for several independent reasons and the complaint fails to state a valid claim under the

Administrative Procedure Act.” Defs.’ Mot. Dismiss (“Defs.’ Mot.”) at 1, ECF No. 13. Most

importantly, GSA argues that the United States Court of Federal Claims (“CFC”)—in which

plaintiff also has pending a complaint arising from the same events—has exclusive jurisdiction

pursuant to the Tucker Act, 28 U.S.C. § 1491. Defs.’ Mot. at 1; see also Defs.’ Mem. Supp.

Mot. Dismiss & Opp’n Pl.’s Mot. Prelim. Inj. (“Defs.’ Opp’n”) at 7–21, ECF No. 13; Defs.’

Reply Supp. Mot. Dismiss (“Defs.’ Reply”) at 2–8, ECF No. 19.

For the reasons discussed below, GSA’s Motion to Dismiss is granted, under Federal

Rule of Civil Procedure 12(b)(1), and plaintiff’s Motion for Preliminary Injunction must be

denied as moot. 1

I. BACKGROUND

A. Factual Background

Plaintiff is a company that “provides marine solutions, energy, and logistics services in

domestic and international markets.” Compl. ¶ 12. Unfortunately for plaintiff, as noted, the

instant dispute arises from a government contract that is apparently differently interpreted by two

government agencies.

1 GSA also moves in the alternative to dismiss for failure to “identify final agency action subject to current judicial review,” pursuant to Federal Rule of Civil Procedure 12(b)(6). Defs.’ Mot. at 1. “As the finding that subject-matter jurisdiction has not been established requires that the case be fully dismissed, this alternative ground for dismissal need not be addressed.” Rosenkrantz v. Inter-Am. Dev. Bank, No. 20-cv-3670 (BAH), 2021 WL 1254367, at *1 n.1 (D.D.C. Apr. 5, 2021).

2 1. Plaintiff’s Contract with USTRANSCOM

On November 22, 2016, USTRANSCOM awarded, to plaintiff’s predecessor-in-interest,

Contract No. HTC711-17-D-R003 (“Contract”), under which plaintiff now “provides various

logistical, planning, and transportation coordination services to assist USTRANSCOM with

managing a large and complex network of moving goods and cargo for the Department of

Defense.” Compl. ¶¶ 19–21.

Under the Contract, plaintiff receives shipping orders from government shippers

specifying the origin, destination, and other attributes of desired cargo shipments within the

continental United States. Compl. ¶¶ 30, 34. In response, plaintiff plans and coordinates the

transportation of the shipments from end to end—selecting, scheduling, and paying various types

of subcontractors to perform the actual handling and movement of the cargo. Id. ¶¶ 31–32, 35.

The Contract sets forth certain performance standards for delivery timeframes and allowable

reasons for deviations from those standards (e.g., inclement weather), id. ¶¶ 36–37, as well as

certain conventions for the computation of shipping timeframes (e.g., the treatment of weekends

and holidays), id. ¶¶ 38–39.

Since inception of the Contract, plaintiff has provided this shipping service for roughly

1.2 million shipments. Compl. ¶ 33. Plaintiff does not in the instant case register any grievances

as to USTRANSCOM’s performance under the Contract, nor does it indicate that the parties to

the Contract materially disagree as to its essential terms.

2. GSA Involvement

Plaintiff’s complaint arises from allegedly unwanted, extracontractual, and erroneous

interventions by GSA, in the form of Notices of Overcharge (“NOCs”), after the invoicing phase

of shipments. Specifically, GSA “audit[s] Crowley’s invoices to USTRANSCOM and assess[es]

3 NOCs against Crowley,” Compl. ¶ 42, despite being neither a party to the Contract nor expressly

contemplated by the Contract to have a role in its administration, id. ¶¶ 40–41. Broadly

speaking, GSA’s disagreements with plaintiff’s invoices include the applicability of allowed

exceptions to expected delivery timelines, id. ¶ 43, the method of counting days when measuring

actual delivery performance, id. ¶¶ 45–46, and issues stemming from alleged errors in

government paperwork or limitations in government booking systems, id. ¶¶ 47–52.

The Contract, according to plaintiff, contains a “disputes clause” whereby plaintiff may

“pursue claim[s] for relief” with the appropriate Contracting Officer at USTRANSCOM for such

matters as the perceived GSA interference with invoicing and payment processes. See Compl.

¶ 54. Over the course of 2020, plaintiff made a claim regarding “a sample of” GSA’s NOCs,

representing the various categories of disputed issues, with the Contracting Officer, resulting in

the Contracting Officer issuing three Final Decisions that same year, indicating substantive

agreement with plaintiff on the disputed matters and concluding with respect to each that

“‘NOCs should not have been issued.’” Id. ¶¶ 55–69 (quoting Compl., Ex. C, Contracting

Officer’s Final Decision Regarding Certified Claim (“December 2020 Final Decision”) ¶ 3, ECF

No. 1-4). 2 The Contracting Officer observed that although “GSA was provided an opportunity to

validate its issuance of [NOCs] disputed in this claim,” GSA “declined to provide a meaningful

or thorough response” and as a result the NOCs “are not factually supportable, and, hence, are

not valid.” Compl. ¶ 68 (quoting December 2020 Final Decision ¶ 3(a)).

2 The claim involved 168 NOCs covering services rendered in April 2018, totaling $119,483.03. December 2020 Final Decision at 1; id. ¶ 1(d).

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