Data Marketing Co. of Virginia v. United States

107 F. App'x 187
CourtCourt of Appeals for the Federal Circuit
DecidedJuly 8, 2004
DocketNo. 03-5102
StatusPublished
Cited by4 cases

This text of 107 F. App'x 187 (Data Marketing Co. of Virginia v. United States) 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
Data Marketing Co. of Virginia v. United States, 107 F. App'x 187 (Fed. Cir. 2004).

Opinion

GAJARSA, Circuit Judge.

Appellants Data Marketing Company of Virginia (“DMC”) and Standards Development Association, Inc. (“SDA”) (collectively, the “Companies”) appeal from the decision by the United States Court of Federal Claims granting summary judgment in favor of the Government on the Companies’ breach of contract, fiduciary duty, and good faith and fair dealing claims against the Department of Defense (“DOD”) and the National Technology Information Service (“NTIS”). Data Mktg. Co. of Va. & [189]*189Stds. Dev. Assoc., Inc., 55 Fed.Cl. 685 (2003). DMC and SDA each entered into joint venture agreements with NTIS to provide online access to DOD solicitations, technical drawings, and other bid proposal information. After NTIS terminated the agreements, DMC and SDA brought suit against DOD and NTIS. This appeal follows the Court of Federal Claims’ dismissal of Appellants’ claims following entry of summary judgment.

For the reasons discussed below, we agree with the Court of Federal Claims that Appellants have not demonstrated a genuine issue of material fact that could support (1) the Companies’ claims against DOD or (2) DMC’s claims against NTIS. With respect to SDA’s claims against NTIS, however, we vacate the Court of Federal Claims’ entry of summary judgment and remand for further proceedings on the narrow issue of whether, by refusing to accede to ASTM’s contractual demands or by refusing to continue to negotiate an agreement with ASTM during the 60-day post-notification period, NTIS breached express or implied contractual provisions which required NTIS to cooperate in the transition of the ISRDN database to either SDA or its designate. In summary, we affirm-in-part, vacate-in-part, and remand the judgment of the Court of Federal Claims.

BACKGROUND

A. Electronic Procurement Site

In 1995, Barry Nelsen, a consultant to Western Tele-Communications Inc. (‘WTCI”), proposed that DOD, NTIS, and WTCI jointly establish a website to permit the public, for a small fee, to access technical data that is referenced in DOD solicitations. At the time, vendors interested in bidding on a DOD contract had to separately locate specifications, standards, and drawings to prepare bid proposals. The process of gathering this information deterred potential vendors and proved costly to DOD because DOD had to respond to Freedom of Information Act requests and chose among fewer vendors for goods and services.

To evaluate Mr. Nelsen’s proposal, DOD commissioned Coopers & Lybrand, which later became PricewaterhouseCoopers (“PWC”). PWC recommended the procurement project with the caveat that NTIS should independently manage the relationship with WTCI. As PWC noted, DOD already was funding other nascent efforts to provide procurement information online; PWC therefore recommended that DOD avoid the appearance of favoring WTCI over other potential procurement web developers. DOD approved the project, provided some funding to NTIS, and structured the project such that it would provide proposal data to NTIS, who in turn would develop the website with WTCI.

B. Interagency Agreements Between NTIS and DOD

To obtain the technical data needed for the website, NTIS entered into a series of interagency agreements with various DOD divisions. Neither DMC nor SDA were parties to these contracts.

In January 1997, NTIS entered into a Memorandum of Agreement (“MOA”) with DOD’s Office of the Deputy Under Secretary of Defense (Acquisition Reform/Elec-tronie Commerce). Under the MOA, DOD was to provide unclassified data, including solicitations and related technical information, to NTIS in an electronic format. For its part, NTIS agreed to be a “non-exclusive distributor to the public” of DOD’s information. The parties also agreed to jointly determine the scope, content, format, and delivery of the information.

[190]*190NTIS next entered into an MOA with a Defense Supply Center (“DSC”) in Richmond (the “NTIS-Richmond Agreement”). DSC-Riehmond agreed to provide NTIS with unclassified data packages and engineering drawings. DSC-Riehmond and NTIS also agreed to jointly develop the criteria for transferring information. NTIS agreed to be a non-exclusive distributor of the information transferred from DSC-Riehmond.

In addition to its relationship with DSC-Riehmond, NTIS entered into draft agreements with other Defense Supply Centers, specifically those in Philadelphia and Columbus, to provide technical data to NTIS. While these agreements were never finalized, both DSC-Philadelphia and DSC-Columbus periodically supplied NTIS with data and drawings.

The last interagency agreement of note was signed in November 1997 between NTIS and the Defense Information Systems Agency (“DISA”), a division of DOD (the “NTIS-DISA Agreement”). The NTIS-DISA Agreement required DISA to provide access to certain types of Requests for Quotations and Requests for Proposals known as “840 transactions” as soon as the procurement system was “ready for deployment” and had satisfied certain compatibility and testing requirements.1

C. Third-Party Agreements

In addition to arranging to receive data from DOD sources, NTIS entered into joint venture agreements with'Appellants to create and market an online, one-stop shopping site for procurement information. NTIS contracted with DMC regarding the provision of technical data and solicitations on the website and also entered into a separate agreement with SDA regarding the provision of industry standards.

1. The DMC Agreement

In June 1996, NTIS signed a joint venture agreement with WTCI to create the online procurement system, which the parties named the Technical Data Package Management Information System (the “TDPMIS”). This initial agreement was amended in August 1997. In the amended agreement (the “DMC Agreement”), DMC was added as a party and WTCI was replaced with WTCI’s wholly owned subsidiary, Intessera Technologies Group, Inc. (“ITG”).2 It is important to note that DOD was not a party to the DMC Agreement.

Under the DMC Agreement, each party agreed to perform specific tasks to further the development of the online procurement system. DMC was a marketing firm headed by Mr. Nelsen. Under Section 3.3 of the DMC Agreement, DMC’s role in the joint venture was to provide consulting, planning, and marketing services for the procurement website. Among other obligations, DMC agreed to develop and maintain “comprehensive marketing and sales plans” and sales literature, and assist the NTIS and ITG in “establishing contacts and meetings with key DoD management and technical personnel.”

ITG provided the technical services for the website under the DMC Agreement. In Section 3.1 of the agreement, ITG [191]*191agreed to develop, manage, and provide the software and telecommunications support necessary to distribute the technical data to the public via the internet. In addition, ITG was required to process the raw data it received from NTIS.

Like ITG, NTIS’s responsibilities under the DMC Agreement were also relatively technical. NTIS’s basic obligation, as stated in Section 3.2 of the DMC Agreement, was to “provide the ICP [i.e., DOD] Data ... and JEDMICS [technical] drawings to ITG ...

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Bluebook (online)
107 F. App'x 187, Counsel Stack Legal Research, https://law.counselstack.com/opinion/data-marketing-co-of-virginia-v-united-states-cafc-2004.