Kentucky v. United States

62 Fed. Cl. 445, 2004 U.S. Claims LEXIS 269, 2004 WL 2315722
CourtUnited States Court of Federal Claims
DecidedOctober 13, 2004
DocketNo. 04-831C
StatusPublished
Cited by14 cases

This text of 62 Fed. Cl. 445 (Kentucky 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
Kentucky v. United States, 62 Fed. Cl. 445, 2004 U.S. Claims LEXIS 269, 2004 WL 2315722 (uscfc 2004).

Opinion

OPINION AND ORDER1

BLOCK, Judge.

I. Introduction

When should the word “may,” be construed as “shall?” This is the interpretive conundrum facing this court in this post-award bid protest case. While it is a corner [447]*447stone of jurisprudence that a court should give effect to the literal meaning of a term in order to effectuate the intention of the legislature, it was also established long ago that it is only through custom, usage, convention, and especially in its context, that statutory language establishes a coherent meaning. See Pennington v. Coxe, 6 U.S. (2 Cranch) 33, 52-53, 2 L.Ed. 199 (1804) (Marshall, C.J.) (“That a law is the best expositor of itself, that every part of an act is to be taken into view, for discovering the mind of the legislature; and the details of one part may contain regulations restricting the extent of general expressions used in another part of the same act____”).

Indeed, when enforcement of the literal interpretation of a statute would lead to an absurd result, United States v. Bryan, 339 U.S. 323, 338, 70 S.Ct. 724, 94 L.Ed. 884 (1950), or thwart the purpose of the statute, In Re Trans Alaska Pipeline Rate Cases, 436 U.S. 631, 643, 98 S.Ct. 2053, 56 L.Ed.2d 591 (1978), Trustees of Indiana University v. United States, 223 Ct.Cl. 88, 94, 618 F.2d 736, 739 (1980), literal interpretation must be jettisoned in favor of a rational inquiry based on the context and purpose of the statute. Without taking heed of the latter wisdom, sometimes the danger arises that “wooden literalism” could make a statute, and especially its component remedial parts, unworkable. Such is the ease here.

More specifically, this ease chiefly involves the effect of the Randolph-Sheppard Act (“RSA” or “the Act”) on the contract award process and on the jurisdiction of this court over bid protests. The parties dispute whether the United States Army (“Army”) improperly failed to award a cafeteria vending contract to the plaintiff, the Kentucky Department for the Blind (“KDB”), a state licensing agency (“SLA”) that represents the interests of blind vendors. Under the RSA, SLAs receive a priority in the procurement process to operate vending facilities on government property if their bids satisfy certain conditions established by regulation promulgated by the Department of Education (“DOE”).

One condition to a SLA receiving a priority is that the SLA’s bid must fall within a “competitive range” for the solicitation. This essentially means that the SLA’s bid must successfully fall within a range established by the contacting officer in order to receive the priority for the contract award. Here, the Army’s contracting officer found that KDB’s bid fell outside the competitive range because its estimated price was too high. KDB filed a post-award bid protest in this court challenging its exclusion from the competitive range, claiming that the Army improperly evaluated its bid.

KDB’s complaint, however, raises a significant jurisdictional issue. The Randolph-Sheppard Act, in addition to providing employment opportunities to blind vendors, also establishes an arbitration process within the DOE for resolution of disputes that arise under the Act. KDB admits that it has not sought resolution of the present dispute through arbitration. See July 20, 2004 Hearing Tr. at 21-22. The government’s principal argument is that recourse to arbitration is mandatory, and KDB’s failure to exhaust its administrative remedies deprives this court of jurisdiction to consider KDB’s post-award bid protest. KDB argues, to the contrary, that the language of the RSA’s arbitration provision is permissive and primarily relies for support on this court’s opinions in Texas State Commission for the Blind v. United States, 6 Cl.Ct. 730, 735-36 & n. 12 (1984), rev’d on other grounds, 796 F.2d 400 (Fed.Cir.1986) (en bane) and Washington State Department of Services for the Blind v. United States, 58 Fed.Cl. 781, 786 n. 8 (2003).

This court, however, rejects the reasoning of these opinions to the extent that these decisions are contrary to the rationale of Randolph-Sheppard Vendors of America v. Weinberger, 795 F.2d 90 (D.C.Cir.1986). In that case, the D.C. Circuit applied a long-accepted rule of statutory construction in holding that Congress intended the arbitration requirement to be mandatory, regardless of any permissive language in the statute. See, e.g., United States v. Babcock, 250 U.S. 328, 331, 39 S.Ct. 464, 63 L.Ed. 1011 (1919) (Brandeis, J.) (applying the “well settled” rule that “where a statute creates a right and provides a special remedy, that remedy is exclusive”).

[448]*448Before the court are the parties’ cross-motions for summary judgment pursuant to Rule 56.1 of the Rules of the Court of Federal Claims (“RCFC”), and the government’s RCFC 12(b)(1) motion to dismiss for lack of jurisdiction. For the reasons stated herein, the court concludes that the Randolph-Sheppard Act requires exhaustion of administrative remedies and, therefore, the court grants the government’s RCFC 12(b)(1) motion.

II. The Randolph-Sheppard Act and the Blind Vendors Program

The Randolph-Sheppard Act2 established a program to promote the interests of the blind by authorizing blind persons to operate vending facilities in federal buildings with the goal of expanding economic opportunities available to the blind community. 20 U.S.C. § 107(a) (2000). The intentions behind the program are noble, and Congress has championed its benefits: “The dignity and pride engendered by the development of skills and entrepreneurial ability represent the finest example of a healthy, vigorous, compassionate society combined with the true expression of an American ideal — self-respect, independence, and meaningful contribution to that society.” S. Rep. No. 93-937 at 14 (1974). Congress has also expressed concern for what the quality of life might be like for blind vendors without the program, fearing they might otherwise lead “a marginal existence on welfare, a life without hope or joy, a burdensome, stultifying dependence.” Id.

The Act accomplishes its goals by establishing a program under which federal buildings must contain a satisfactory site for a blind person to set up and operate a vending facility. 20 U.S.C. § 107a(d)(l). The vending facilities may sell such wares as “newspapers, periodicals, confections, tobacco products, foods, beverages, and other articles or services dispensed automatically or manually.” 20 U.S.C. § 107a(a)(5). Blind vendors, in turn, receive a priority in operating those facilities, provided they satisfy criteria established by regulation. 20 U.S.C. § 107(b). The Department of Education is charged with overseeing the Act and prescribing regulations, and the SLAs are responsible for implementing the programs on the local level. 20 U.S.C.

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62 Fed. Cl. 445, 2004 U.S. Claims LEXIS 269, 2004 WL 2315722, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kentucky-v-united-states-uscfc-2004.