Csi Aviation, Inc. v. Dhs

CourtCourt of Appeals for the Federal Circuit
DecidedApril 14, 2022
Docket21-1630
StatusPublished

This text of Csi Aviation, Inc. v. Dhs (Csi Aviation, Inc. v. Dhs) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Csi Aviation, Inc. v. Dhs, (Fed. Cir. 2022).

Opinion

Case: 21-1630 Document: 49 Page: 1 Filed: 04/14/2022

United States Court of Appeals for the Federal Circuit ______________________

CSI AVIATION, INC., Appellant

v.

DEPARTMENT OF HOMELAND SECURITY, GENERAL SERVICES ADMINISTRATION, Appellees ______________________

2021-1630 ______________________

Appeal from the Civilian Board of Contract Appeals in Nos. 6292/6386, 6543/6801, 6581/6582, Administrative Judge Kyle E. Chadwick, Administrative Judge Harold C. Kullberg, Administrative Judge Jerome M. Drummond. ______________________

Decided: April 14, 2022 ______________________

JASON NICHOLAS WORKMASTER, Miller & Chevalier Chartered, Washington, DC, argued for appellant. Also represented by ELIZABETH J. CAPPIELLO, LAURA G. FERGUSON, ALEJANDRO LUIS SARRIA.

IN KYU CHO, Civil Division, Commercial Litigation Branch, United States Department of Justice, Washington, DC, argued for all appellees. Also represented by BRIAN M. BOYNTON, MARTIN F. HOCKEY, JR., PATRICIA M. MCCARTHY. Appellee Department of Homeland Security also Case: 21-1630 Document: 49 Page: 2 Filed: 04/14/2022

represented by CASSANDRA MAXIMOUS, ANDREW WAGNER, Office of the Principal Legal Advisor, United States De- partment of Homeland Security, Washington, DC. Appellee General Services Administration also represented by SARAH PARK, United States General Services Administra- tion, Washington, DC. ______________________

Before NEWMAN, DYK, and HUGHES, Circuit Judges. HUGHES, Circuit Judge. This is a government contract case in which CSI Avia- tion, Inc. seeks payment from the Department of Homeland Security for flight cancellation charges, totaling $40,284,548.89, that CSI contends it is owed under the Schedule Contract. CSI appeals the decision of the Civilian Board of Contract Appeals holding that the CSI Terms and Conditions were not incorporated by reference into the Schedule Contract and dismissing six consolidated appeals on that basis. Because we determine that the Schedule Contract expressly incorporates at least one document that unambiguously identifies the CSI Terms and Conditions and that makes clear such terms and conditions apply to all operations, we reverse the Board’s holding to the con- trary. Since that holding formed the basis for all six dis- missals, we vacate the Board’s summary judgment decision and remand for further proceedings. I A Under the Federal Supply Schedule Program, the Gen- eral Services Administration (GSA) “acts as the contracting agent for the federal government” and negotiates “base contracts with suppliers of commercial products and ser- vices.” Sharp Elecs. Corp. v. McHugh, 707 F.3d 1367, 1369 (Fed. Cir. 2013) (cleaned up). These base (or schedule) con- tracts streamline the acquisition process for federal Case: 21-1630 Document: 49 Page: 3 Filed: 04/14/2022

CSI AVIATION, INC. v. DHS 3

agencies, see CGI Fed. Inc. v. United States, 779 F.3d 1346, 1352 (Fed. Cir. 2015), and “allow [them] to take advantage of the flexible and dynamic commercial market-pricing en- vironment,” so all federal customers, “regardless of size or location,” can “place orders directly with contractors and receive the same services, convenience, and pricing,” Appx5307. The Federal Supply Schedule Program “closely mirrors commercial buying practices.” Appx5307. But, instead of “evaluating prices head to head . . . in a competitive envi- ronment,” GSA assesses pricing “as it relates to [the offe- ror’s] commercial selling practices.” Appx8775. An offeror submits a completed commercial sales practices sheet along with supporting documentation that discloses com- mercial pricing, market participants, sell price, and terms and conditions for the offeror’s “most favored customer” in a competitive environment. Appx5367, 8775. Relying on this information and in accordance with the Federal Acqui- sitions Regulations (FAR), a GSA contracting officer deter- mines whether the pricing is “fair and reasonable” not as it relates to the competitive environment but “as it relates to [the offerror’s] commercial selling practices.” Appx5367, 8775. Should the contracting officer accept the offer, the Federal Supply Schedule Program “allow[s] executive agencies to issue orders for those commercial products pur- suant to the underlying [GSA] contract.” CGI Fed., 779 F.3d at 1352. B CSI Aviation, Inc. is a worldwide services broker that provides “passenger and cargo air charter, aircraft leasing, and comprehensive aircraft management.” Appx6924. On November 6, 2008, CSI submitted an offer to GSA for a Travel Services Solutions contract under Schedule 599 for “[a]ir charter services operated by brokers, and various auxiliary services that will be used to support the contract.” Appx6924. Under this contract, CSI would “provide a full Case: 21-1630 Document: 49 Page: 4 Filed: 04/14/2022

range of services to assist Government agencies in Travel Services Solutions” through “a non-mandatory, indefinite delivery - indefinite quantity Multiple Award Schedule contract that [would] allow for firm fixed-price task orders (and for labor hours and time and materials task orders based on firm-fixed prices).” Appx6924. On February 27, 2009, in response to a revised solicita- tion from GSA for new air charter services, CSI submitted a revised proposal. This proposal included its commercial price list and the CSI Terms and Conditions, dated Febru- ary 2009. In its March 2, 2009 response, the Contracting Officer asked CSI to provide model numbers for each air- craft offered because the provided aircraft types were “too vague to do a proper comparative price analysis.” Appx9055. The Contracting Officer also acknowledged that “the CSI Terms and Conditions document [had been] sub- mitted to [GSA]” but asked CSI if GSA was “required to initial off on these or are these requirements for ordering agencies to comply with? If so,” the Contracting Officer con- tinued, he was “going to have to submit these for Legal re- view as we haven’t had to agree to terms like these from other air charter providers.” Appx9055. CSI replied that “the Terms and Conditions . . . were just provided for [GSA’s] information.” Appx9581. On March 9, 2009, the Contracting Officer “determined that CSI’s offer, including the revised pricing (March 2, 2009), [was] acceptable to the Government.” Appx9592. He instructed CSI to review a document that would “become the attachment to the signed cover page [Standard Form] 1449” and to “confirm that this accurately and com- pletely addresse[d] all elements of the contract to be awarded that may not be directly addressed within the in- formation submitted and/or agreed upon.” Appx9592. CSI immediately returned “the final documents [the parties] ha[d] agreed to,” including the SF1449 attachment, a final proposal letter, and the Revised Commercial Price List, all of which CSI dated March 9, 2009 to reflect the final review Case: 21-1630 Document: 49 Page: 5 Filed: 04/14/2022

CSI AVIATION, INC. v. DHS 5

date. Appx9592. GSA awarded the Schedule Contract to CSI the next day. C CSI’s Schedule Contract includes the signed SF1449 and attached pages, Appx5277–79, together with the fol- lowing documents, among others, listed in the SF1449 as being expressly “incorporated and made a part of the con- tract”: 1) the Travel Services Solutions schedule solicita- tion “dated February 10, 2009, superseding the former solicitation”; 2) the Offer; and 3) the Revised Commercial Price List, Appx5279 (listing the named documents on page 1b of CSI’s SF1449).

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Csi Aviation, Inc. v. Dhs, Counsel Stack Legal Research, https://law.counselstack.com/opinion/csi-aviation-inc-v-dhs-cafc-2022.