Keeton Corrections, Inc. v. United States

59 Fed. Cl. 753, 2004 U.S. Claims LEXIS 51, 2004 WL 542632
CourtUnited States Court of Federal Claims
DecidedMarch 17, 2004
DocketNo. 04-132C
StatusPublished
Cited by105 cases

This text of 59 Fed. Cl. 753 (Keeton Corrections, 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.

Bluebook
Keeton Corrections, Inc. v. United States, 59 Fed. Cl. 753, 2004 U.S. Claims LEXIS 51, 2004 WL 542632 (uscfc 2004).

Opinion

OPINION

MEROW, Senior Judge.

In this post-award protest, Keeton Corrections, Inc. (“Keeton”) challenges the decision by the Federal Bureau of Prisons (“BOP”) to override the automatic stay which occurred when Keeton challenged the award of a community correction center contract in Memphis, Tennessee. The court has denied plaintiffs motions for a temporary restraining order (“TRO”) and preliminary injunction premised largely on plaintiffs lack of any right to a contract to perform the service required during the protest period. In the February 13, 2004 Order denying injunctive relief, the court also held that in order to determine the validity of the override action taken by the BOP, the “record must be supplemented to include the basis and factual predicate for the apparent decision that purchase orders could not be utilized to provide the service urgently required during the protest period.” Keeton Corrections, Inc. v. United States, No. 04-132C, Slip. Op. at 6 (Feb. 13, 2004). Subsequently, at the court’s request, the BOP submitted additional documentation addressing the agency’s decision that it could not continue with purchase orders. The validity of the BOP’s override decision is now before the court under the arbitrary and capricious standard of review. See 28 U.S.C. § 1491(b)(4). For the reasons stated below, the BOP’s override of the automatic stay is declared invalid and the stay remains in effect.

FACTS

The background facts of this case were fully explained in the court’s February 13, 2004 Order denying plaintiffs requests for a TRO and preliminary injunction. Briefly, the undisputed facts relevant to the resolution of this case are as follows. On March 14, 2002, the BOP issued Request for Proposals No. 200-0730-MA (“RFP”) for a new contract to provide community correction center services for male and female offenders in the Memphis, Tennessee area. The BOP received offers from both Keeton and Dismas Charities, Inc. (“Dismas”). At the time, Kee-ton was the incumbent contractor to operate a halfway house. It was originally awarded a two-year contract with three one-year option periods. Administrative Record (“AR”) 1. Keeton’s contract expired <?n February 15, 2003 after the BOP invoked all three option periods. Under authority provided for in Federal Acquisition Regulation (“FAR”) 52.217-8, the BOP extended Keeton’s contract for six months until August 15, 2003.1 AR 29. On June 9, 2003, the BOP awarded a two-year contract to Dismas with three one-year option periods. Keeton subsequently filed a protest with the General Accounting Office (“GAO”) on June 26, 2003, invoking the automatic stay provided for under the Competition in Contracting Act (“CICA”), 31 U.S.C. § 3553(d). In response to Keeton’s protest, the BOP decided to take corrective action and ordered a re-evaluation of Kee-ton’s and Dismas’ proposals. On December 18, 2003, the BOP notified GAO that it had again awarded the contract to Dismas. On December 31, 2003, Keeton filed a second protest concerning the award which invoked the CICA automatic stay. The automatic stay provision provides that the agency shall direct the contractor to cease performance during the protest period, except that the head of the procuring activity may authorize performance, notwithstanding the protest, upon a written finding that:

[755]*755(I) performance of the contract is in the best interests of the United States; or
(II) urgent and compelling circumstances that significantly affect interests of the United States will not permit waiting for the decision of the Comptroller General concerning the protest;

31 U.S.C. § 3553(d)(3)(C).

From August 16, 2003 through January 31, 2004, Keeton continued to provide its services to the BOP by entering into a series of sole source monthly purchase orders. AR 31-38. The purchase orders provided that Keeton would provide community correction center services under the terms provided for in the expired contract and extended services clause. On January 21, 2004, Harley G. Lap-pin, Director of the BOP, authorized performance by Dismas, notwithstanding Kee-ton’s second protest pending before the GAO based on asserted urgent and compelling circumstances. AR 41-43. The merits of Kee-ton’s bid protest remain with the GAO. A decision by the GAO is expected by April 9, 2004. On February 1, 2004, the inmates were transferred from Keeton’s facility to Dismas. On February 13, 2004, plaintiffs motions for a TRO and preliminary injunction were denied.

DISCUSSION

I. Jurisdiction and Standard of Review

The Court of Federal Claims has jurisdiction to review an agency’s decision to override a CICA automatic stay pursuant to 28 U.S.C. § 1491(b)(1). See RAMCOR Servs. Group, Inc. v. United States, 185 F.3d 1286 (Fed.Cir.1999). To afford relief in a bid protest matter, the court “may award any relief that the court considers proper, including declaratory and injunctive relief ____” 28 U.S.C. § 1491(b)(2). The court must review the agency’s decision to override the automatic stay to determine whether it was arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. 28 U.S.C. § 1491(b)(4); RAMCOR, 185 F.3d at 1290; PGBA, LLC v. United States, 57 Fed. Cl. 655, 657 (2003). Thus, the court should not overturn the agency’s decision unless plaintiff demonstrates “(1) the procurement official’s decision lacked a rational basis; or (2) the procurement procedure involved a violation of regulation or procedure.” Impresa Construzioni Geom. Domenico Garufi v. United States, 238 F.3d 1324, 1332 (Fed.Cir.2001); SDS Int'l, Inc. v. United States, 55 Fed.Cl. 363, 365 (2003).

An agency’s decision can be found to be arbitrary and capricious if the agency “entirely failed to consider an important aspect of the problem, offered an explanation for its decision that runs counter to the evidence before the agency, or is so implausible that it could not be ascribed to a difference in view or the product of agency expertise.” Motor Vehicle Mfrs. Ass’n of the United States v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29, 43, 103 S.Ct. 2856, 77 L.Ed.2d 443 (1983). In evaluating the director’s findings, the court “is not empowered to substitute its judgment for that of the agency.” Citizens to Preserve Overton Park, Inc. v. Volpe, 401 U.S. 402, 416, 91 S.Ct. 814, 28 L.Ed.2d 136 (1971). Instead, it must look to see whether the agency considered the relevant factors and made a rational determination.

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59 Fed. Cl. 753, 2004 U.S. Claims LEXIS 51, 2004 WL 542632, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keeton-corrections-inc-v-united-states-uscfc-2004.