Information Systems & Networks Corp. v. United States Department of Health & Human Services

970 F. Supp. 1, 41 Cont. Cas. Fed. 77,149, 1997 U.S. Dist. LEXIS 9419
CourtDistrict Court, District of Columbia
DecidedJune 11, 1997
DocketCivil Action 96-2802, 97-187 (RCL)
StatusPublished
Cited by13 cases

This text of 970 F. Supp. 1 (Information Systems & Networks Corp. v. United States Department of Health & Human Services) 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.

Bluebook
Information Systems & Networks Corp. v. United States Department of Health & Human Services, 970 F. Supp. 1, 41 Cont. Cas. Fed. 77,149, 1997 U.S. Dist. LEXIS 9419 (D.D.C. 1997).

Opinion

MEMORANDUM OPINION

LAMBERTH, District Judge.

On December 18, 1996, plaintiff Information Systems & Networks Corporation (“ISN”), a Maryland corporation with facilities in North Carolina engaged in creating and managing business systems, filed suit against the government 1 , seeking entry of both preliminary and permanent injunctions against the defendants to enjoin them from refusing to extend an option contract and from awarding a new contract for the provision of certain goods and services to intervenor OAO Corporation (“OAO”) and its subcontractor Technology Planning & Management Corporation (“TPMC”). Count I of the complaint alleged violations of the Competition in Contracting Act, and Count II alleged violations of the Administrative Procedure Act.

A preliminary injunction hearing was held before this court on January 15, 1997, at which time the court denied plaintiff’s motion. Subsequently, plaintiff filed a related complaint, Civil Action 97-187. Subsumed into this action were Counts I and II of the first complaint, but a Bivens action against certain government employees has also been included. 2 For purposes of this opinion, the court deals exclusively with the terminology of the second action. That is, the first claim of plaintiffs second complaint alleges a Bivens action, the second claim alleges violations of the APA and federal statutes surrounding termination of ISN’s contract as a result of the government’s failure to exercise an option renewal, and the third claim of the complaint alleges violations of the APA and federal statutes in connection with the failure of ISN to be included in a competition for another contract. Plaintiff has sought relief under these claims and has also asked for reconsideration of its preliminary injunction motion. The complaints have been consolidated by order of February 4, 1997.

The government and the intervenor each have motions to dismiss and motions for summary judgment on each complaint. Upon consideration of these motions, the court will dismiss counts I and II of Civil Action No. 96-2802, and dismiss plaintiffs first and third claims from Civil Action No. 97-187. The second claim, the wrongful termination of contract claim, will be transferred to the Court of Federal Claims.

BACKGROUND

The National Institute of Environmental Health Sciences (“NIEHS”) operates a research facility in Raleigh, North Carolina. On December 1, 1993, it awarded a contract to ISN for the procurement of Federal Information Processing (“FIP”) supplies. Comp, at 5. The contract allows NIEHS to issue task orders for items of an indefinite delivery/indefinite quantity. Id. Under this contract, ISN had a base contract consisting of the 1994 calendar year, with four renewable options. At time of the award, the contract price, including the use of all four options, was $19,000,000. Id. at 6.

The government exercised its first option at the end of 1994, extending the contract to December 31, 1995, and on December 22, *3 1995, the government exercised a second option, set to expire on December 31, 1996. Despite preliminary notice that another option would be exercised 3 , on December 10, 1996, ISN was given notice that its third option period would not be taken by the government. The failure to exercise an additional option forms the basis for the second claim of plaintiffs complaint. ISN argues that this decision was made contrary to the Competition in Contracting Act (“CICA”), 41 U.S.C. § 253(b)(1)(1994) — the result of cronyism by a government contracting official— and ISN therefore seeks to force the government to exercise the option. The third claim of ISN’s complaint deals with the government’s efforts to obtain the items the contract with ISN would have supplied, and the government’s alleged blacklist of ISN to keep it from competition for that new contract.

NIEHS operates a special program called the Chief Information Officer’s Solutions and Partners (“CIOSP”) program. Comp, at 5. CIOSP employs multi-year ID/IQ contracts utilizing cost-plus fixed fee, cost-plus award fee, time and materials, and firm fixed price task orders to provide information technology operation support and other services to the National Institutes of Health. Id. This program, authorized by the Federal Acquisition Streamlining Act of 1994 (“FASA”) and codified at 41 U.S.C.A. § 253h (West Supp. 1996), allows for the issuance of ID/IQ “task orders” by the NIEHS to its 20 prime contractors. Def.’s Mem. of Points and Auth. in Supp. of its Mot. to Dis. Pl.’s Comp, at 23. To fulfill these task orders, should they be awarded, prime contractors are “teamed” with smaller subcontractors. Unisys was a prime contractor under the CIOSP program, and Unisys was teamed with ISN — which acted as a subcontractor. OAO, the intervenor in this case, is also a CIOSP prime contractor, and is teamed with TMPC.

ISN, in addition to the government’s refusal to extend its contract, has also alleged that the COTR involved in determining which contractor to use for a task order which would take the place of the non-renewed ISN option, “blacklisted” ISN from consideration, violating the Administrative Procedures Act (“APA”). That task order contract instead went to OAO and its subcontractor TMPC. ISN alleges that the contracting officers in the government who were instrumental in making the determinations to end the ISN contract and award the task order to OAO did so in a manner which unlawfully deprived ISN of its civil rights.

The defendants have vehemently challenged the jurisdiction of this court to decide the termination of contract issue. As to plaintiffs complaint alleging wrongdoing in the failure to allow ISN an opportunity to compete in a bid, defendants have challenged ISN’s standing as a subcontractor to complain of this competition which was directed at prime contractors — especially in light of the fact that ISN’s prime contractor, Unisys, did not even compete for the task order in question. And, with respect to the Bivens claim, defendants argue that such an action is precluded by Congressionally provided remedies.

DISCUSSION

I. Termination of Contract

The government and the intervenor have moved to dismiss the second claim of plaintiffs complaint for lack of subject matter jurisdiction, pursuant to Federal Rule of Civil Procedure 12(b)(1).

Defendants, as federal agencies, are immune from suit unless the government has expressly waived that immunity. Transohio Sav. Bank v. Director, Office of Thrift Supervision, 967 F.2d 598, 606 (D.C.Cir.1992). Statutes waiving this sovereign immunity then determine the scope of the jurisdiction of the courts to hear such suits or to provide relief. A & S Council Oil Co., Inc. v. Lader,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

M. Nicolas Enterprises, Llc.
Federal Claims, 2022
National Air Cargo Group, Inc. v. United States
126 Fed. Cl. 281 (Federal Claims, 2016)
Validata Chemical Services v. United States Department of Energy
169 F. Supp. 3d 69 (District of Columbia, 2016)
M.E.S., Inc. v. Snell
712 F.3d 666 (Second Circuit, 2013)
Vero Technical Support, Inc. v. U.S. Department of Defense
733 F. Supp. 2d 1336 (S.D. Florida, 2010)
Ciralsky v. Central Intelligence Agency
689 F. Supp. 2d 141 (District of Columbia, 2010)
Ciralsky v. Cia
District of Columbia, 2010
Pure Power!, Inc. v. United States
70 Fed. Cl. 739 (Federal Claims, 2006)
Eagle Design & Management, Inc. v. United States
62 Fed. Cl. 106 (Federal Claims, 2004)
Novell, Inc. v. United States
109 F. Supp. 2d 22 (District of Columbia, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
970 F. Supp. 1, 41 Cont. Cas. Fed. 77,149, 1997 U.S. Dist. LEXIS 9419, Counsel Stack Legal Research, https://law.counselstack.com/opinion/information-systems-networks-corp-v-united-states-department-of-health-dcd-1997.