Leboeuf, Lamb, Greene & MacRae, L.L.P. v. Abraham

347 F.3d 315, 358 U.S. App. D.C. 204, 2003 U.S. App. LEXIS 21967
CourtCourt of Appeals for the D.C. Circuit
DecidedOctober 28, 2003
Docket02-5265
StatusPublished
Cited by15 cases

This text of 347 F.3d 315 (Leboeuf, Lamb, Greene & MacRae, L.L.P. v. Abraham) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leboeuf, Lamb, Greene & MacRae, L.L.P. v. Abraham, 347 F.3d 315, 358 U.S. App. D.C. 204, 2003 U.S. App. LEXIS 21967 (D.C. Cir. 2003).

Opinion

Opinion for the Court filed by Circuit Judge ROGERS.

ROGERS, Circuit Judge:

The law partnership of LeBoeuf, Lamb, Greene & MacRae, L.L.P. (“LeBoeuf’) appeals the denial of its request for a direct award of a government contract and the grant of summary judgment to the Department of Energy. LeBoeuf protested the Department’s award of a contract for outside legal services to another law firm and now contends that the district court erred in finding that its award request was moot and in granting summary judgment in view of a material issue of disputed fact as to whether the Department complied with procurement regulations. We vacate the judgment and remand the case to the district court to determine (1) whether the Department adequately considered the apparent conflict of interest as required by federal and Departmental regulations, and (2) whether the Department’s need for expert legal services on the Yucca Mountain Project can support a direct award of the contract to LeBoeuf or an award of other relief.

I.

Three contracts are relevant to this appeal. All of the contracts relate to the Department’s plans to obtain an operating license from the United States Nuclear Regulatory Commission (“NRC”) for the Yucca Mountain Nuclear Waste Repository site in Nevada (‘Yucca Mountain Project”). See Nuclear Waste Policy Act of 1982 (codified as amended at 42 U.S.C. §§ 10101-10270 (1987)). Under the Act, the Department must issue guidelines for the recommendation of sites for a permanent repository, nominate sites for site characterization to be approved or disapproved by the President, and once a site is chosen, seek a license from the NRC to construct and operate the repository. Id. §§ 10132-10145.

The first contract was entered into by the Department in 1991 with TRW Environmental Safety Systems, Inc. (“TRW”). Under the TRW Contract, TRW was the management and operations contractor for the Yucca Mountain Project. In that capacity, TRW was to conduct studies to determine the suitability of the site as a repository, and thereby assist the Office of Civilian Radioactive Waste Management (“OCRWM”) in developing an integrated radioactive waste management system for the storage and ultimate disposal of spent nuclear fuel and high-level radioactive waste in a manner that protects public health and safety and the environment. See id. § 10134.

The second contract, a subcontract, was entered into by TRW in 1992 with the law firm of Winston & Strawn (“Winston”). Under the TRW Subcontract, Winston was to provide expert legal services to ensure that TRW performed in accordance with NRC regulations and guidelines. Winston’s statement of work covered both consulting services and legal advice and counseling. TRW’s request for proposals (“RFP”) stated that to be eligible, a contractor had to make a “[cjommitment not to engage in activities that would appear to or actually conflict with the interests of TRW.”

*318 The third contract — the Yucca Mountain contract — stemmed from a RFP issued by the Department on May 27, 1999. Because its Office of General Counsel (“OGC”) lacked the relevant expertise, the Department sought expert legal counsel to provide “professional legal advice and assistance” to the OGC “involving matters related to the licensing activities” of the OCRWM for the Yucca Mountain Project. The scope of work potentially involved review of work performed by Winston for TRW under the TRW Subcontract. The RFP required that bidders be qualified and eligible under applicable laws and regulations and to disclose any conflicts of interest. Additionally, the RFP required that bidders have special NRC expertise and that attorneys chosen to work on the Yucca Mountain Project be active members of at least one State bar. The RFP was based on a ten-year period of performance.

Prior to awarding the Yucca Mountain contract, the Department recognized the importance of avoiding the appearance of a conflict of interest in hiring expert counsel. The Department created a special conflict of interest provision disqualifying law firms that, within the preceding five years, had represented a party against the Department in litigation relating to the “Standard Contract For Disposal of Spent Nuclear Fuel And/Or High-Level Radioactive Waste.” 10 C.F.R. § 961.11. In that connection, the Department recognized that it was statutorily obligated to serve a broader public interest than an interested party. The Head of Contracting Activity in the Office of Headquarters Procurement Services (“HCA”) stated in his decision of July 30, 1999 denying the protest of a law firm as a potential bidder on the 1999 RFP, that notwithstanding the fact that “utilities and [the Department] both have an interest in having the license issued quickly,” under the Nuclear Waste Policy Act, the Department “serves a broader interest of protecting the environment and public health.” See 42 U.S.C. § 10131(a)(4), (5). In other words, the Department’s statutory responsibilities might require action that a utility would oppose, such as, for example, a Department decision imposing stricter controls that would increase the utility’s operating costs. The HCA observed that “[t]his difference is the source of the divergence in interests ... that gives rise to the various potential conflicts of interest,” which “cannot be mitigated simply by imposing a firewall [within the law firm] for the protection of [the Department’s] confidential information.” Protest Decision of July 30, 1999 at 5.

Only two law firms, LeBoeuf and Winston, submitted bids. Pursuant to the conflicts disclosure requirement of the Department’s Acquisition Regulations (“DEAR”), see § 952.209-8, 48 C.F.R. § 952.209-8, Winston stated that “[n]o actual or potential conflict of interest or unfair competitive advantage exists under the TRW Subcontract.” Based on the information provided by Winston, a technical advisory committee and the contracting officer concluded that Winston’s prior work for TRW did not present an organizational conflict of interest barring its award of the contract. The Department announced the award to Winston, as the low bidder by over $3.6 million, in September 1999. The contract was for a five-year term, renewable in segments for a total of ten years.

LeBoeuf filed an administrative appeal alleging that Winston had an organizational conflict of interest (“OCI”). The Department denied the appeal, stating that the Yucca Mountain contract was a replacement for the TRW Subcontract and the statement of work was substantially similar to the statement of work under the TRW Subcontract. Subsequently, the *319 General Accounting Office (“GAO”), by decision of February 3, 2000, denied Le-Boeufs bid protest. GAO concluded that Winston did not have a conflict of interests in light of the Department’s Revised Management Plan for the development of the licensing application designating the OGC, and not Winston, as the entity to provide “concurrence review” before the application was filed with the NRC.

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347 F.3d 315, 358 U.S. App. D.C. 204, 2003 U.S. App. LEXIS 21967, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leboeuf-lamb-greene-macrae-llp-v-abraham-cadc-2003.