Eco Tour Adventures, Inc. v. United States

114 Fed. Cl. 6, 2013 U.S. Claims LEXIS 1919, 2013 WL 6503556
CourtUnited States Court of Federal Claims
DecidedDecember 12, 2013
Docket13-532C
StatusPublished
Cited by43 cases

This text of 114 Fed. Cl. 6 (Eco Tour Adventures, 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.

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Eco Tour Adventures, Inc. v. United States, 114 Fed. Cl. 6, 2013 U.S. Claims LEXIS 1919, 2013 WL 6503556 (uscfc 2013).

Opinion

OPINION AND ORDER

BUSH, Senior Judge.

Now pending before the court are the parties’ cross-motions for judgment on the administrative record. Plaintiff Eco Tour Adventures, Inc. (Eco Tour) filed a pre-award bid protest complaint on August 1, 2013, and filed an amended complaint on August 8, 2013. 2 In this protest, Eco Tour objects to the anticipated award by the United States Department of the Interior, National Park Service (the Park Service or NPS) of two concession contracts to provide guided cross-country ski tours, including associated transportation and food services, in Grand Teton National Park. Eco Tour alleges that certain actions taken by NPS in connection with its selection of cross-country ski touring concessioners were arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. Eco Tour seeks a permanent injunction, declaratory relief, and bid preparation costs, as well as attorney fees and costs incurred in pursuing this bid protest.

The administrative record (AR) was originally filed on August 12, 2013, and supplements to the AR were filed on September 6, 2013, and October 1, 2013. 3 Briefing was filed according to an expedited schedule and oral argument was held on November 8, 2013. As discussed below, the NPS violated applicable law, acted arbitrarily and capriciously, and abused its discretion in concluding that incumbent concessioners Jackson Hole Mountain Resort Corporation and The *12 Hole Hiking Experience, Inc. submitted proposals that were “responsive” to the requirements of the prospectus and in allowing them to match the better terms of Eco Tour’s proposals for the disputed contracts. Accordingly, plaintiffs motion for judgment on the administrative record is granted, and defendant’s motion for judgment on the administrative record is denied. 4

BACKGROUND

I. Statutory and Regulatory Framework for NPS Concession Contracts

Congress first created the NPS in 1916, authorizing the Secretary of the Interior to “grant privileges, leases, and permits for the use of land for the accommodation of visitors in the various parks, monuments, or other reservations” under the Secretary’s authority. Act of Aug. 25, 1916, eh. 408, Pub.L. No. 64-235, § 3, 39 Stat. 535, 535; Circle Line-Statue of Liberty Ferry, Inc. v. United States, 76 Fed.Cl. 490, 491 (2007) (Circle Line). From its inception, the NPS offered financial incentives to attract concessioners to provide services in National Park locations and to induce substantial capital investments on those lands. See Circle Line, 76 Fed.Cl. at 491; S.Rep. No. 89-765, at 7 (1965), reprinted in 1965 U.S.C.C.A.N. 3489, 3495. These incentives included a preferential right of renewal, allowing an incumbent concessioner to renew its contract by matching the best offer of any competing bidder so long as it had performed its present contract satisfactorily. See Circle Line, 76 Fed.Cl. at 491 (citation omitted); S.Rep. No. 89-765, at 7, 10-11.

For almost fifty years, the NPS recognized the preferential right of renewal as a matter of policy, although it did not generally write such a term within its concession contracts. Circle Line, 76 Fed.Cl. at 491-92. In 1965, however, Congress enacted the National Park Service Concession Policies Act, Pub.L. No. 89-249, 79 Stat. 969 (the 1965 Act), in order to “put into statutory form policies which, with certain exceptions, have heretofore been followed by the National Park Service in administering concessions.” S.Rep. No. 89-765, at 1.

In November 1998, Congress revisited the issue of renewal preferences in the National Park Service Concessions Management Improvement Act of 1998, Pub.L. No. 105-391, tit. IV, 112 Stat. 3497, 3503 (the 1998 Act) (codified at 16 U.S.C. §§ 5951-5966 (2012)), which repealed the 1965 Act and “establish[ed] a new and comprehensive concession management program for national parks.” Nat’l Park Hospitality Ass’n v. Dep’t of the Interior, 538 U.S. 803, 806, 123 S.Ct. 2026, 155 L.Ed.2d 1017 (2003) (National Park Hospitality); see also Circle Line, 76 Fed.Cl. at 492. Having found that “[t]rue competition simply did not exist” in the award of concession contracts, Concession Contracts, 65 Fed. Reg. 20630, 20630 (Api\ 17, 2000), Congress restricted the right of preference set forth in the 1965 Act to apply only to (1) “outfitting and guide” concessioners and (2) concessioners holding contracts with annual gross receipts under $500,000, 16 U.S.C. § 5952(7)-(8); Circle Line, 76 Fed.Cl. at 492; 65 Fed. Reg. at 20630-31. 5

Under the 1998 Act, an outfitting and guide concessioner is entitled to exercise a right of preference if each of the following requirements is satisfied:

(i) the contract with the outfitting and guide concessioner does not grant the concessioner any interest ... in capital improvements on lands owned by the United States within a unit of the National Park *13 System [with certain exceptions not relevant here] ...
(ii) the Secretary determines that the concessioner has operated satisfactorily during the term of the contract (including any extension thereof); and
(iii) the concessioner has submitted a responsive proposal for a proposed new contract which satisfies the minimum requirements established by the Secretary pursuant to [16 U.S.C. § 5952(4) ].

16 U.S.C. § 5952(8)(B). In contrast, a concessioner holding a concession contract with annual gross receipts under $500,000 is entitled to exercise a right of preference if requirements (ii) and (iii) above are satisfied. Id. § 5952(8)(C).

The 1998 Act directed the Secretary of the Interior to promulgate regulations “appropriate” for the implementation of the 1998 Act. Id. § 5965. Pursuant to this statutory grant of authority, the NPS promulgated implementing regulations in April 2000. 65 Fed. Reg. 20630 (codified at 36 C.F.R. §§ 51.1-51.104 (2013)).

Under the regulations, an incumbent concessioner that is eligible to exercise a right of preference is referred to as a “preferred offeror.” 36 C.F.R. § 51.27(a). A concessioner is a preferred offeror if each of the following conditions is met:

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114 Fed. Cl. 6, 2013 U.S. Claims LEXIS 1919, 2013 WL 6503556, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eco-tour-adventures-inc-v-united-states-uscfc-2013.