Madison Services, Inc. v. United States

90 Fed. Cl. 673, 2009 U.S. Claims LEXIS 704, 2009 WL 5251950
CourtUnited States Court of Federal Claims
DecidedDecember 23, 2009
DocketNo. 09-675 C
StatusPublished
Cited by27 cases

This text of 90 Fed. Cl. 673 (Madison Services, 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
Madison Services, Inc. v. United States, 90 Fed. Cl. 673, 2009 U.S. Claims LEXIS 704, 2009 WL 5251950 (uscfc 2009).

Opinion

OPINION and ORDER

BLOCK, Judge.

On October 7, 2009, plaintiff, Madison Services, Inc. (“Madison”), filed this pre-award bid protest. Madison challenged the expressed intention of the Federal Emergency Management Agency (“FEMA”) to reissue, per the recommendation of the United States Government Accountability Office (“GAO”), a previously concluded solicitation in which plaintiff was the intended awardee. Arguing that FEMA had yet to make its final decision, defendant first moved to dismiss the protest for lack of ripeness. Thereafter, on November 4, 2009, defendant filed a renewed motion to dismiss, notifying the court that FEMA had formally cancelled the solicitation in question and arguing that the protest was thus moot. Plaintiff promptly moved for leave to amend its complaint, seeking to add a second claim challenging FEMA’s cancellation decision.

On December 8, 2009, the court conducted a recorded status conference, in order to decide these motions and to set an expedited schedule for the remainder of this matter. This opinions clarifies and sets forth the reasoning for the court's rulings. Notably, the court grants defendant’s renewed motion to dismiss the original protest, but grants plaintiffs motion to amend its complaint, thus allowing the protest to proceed as to FEMA’s cancellation decision.

I. BACKGROUND

On April 10, 2009, FEMA issued its Request For Proposals No. HSFEHQ-09-R-0046 (the “RFP” or “solicitation”). Administrative Record (“AR”) 694. The RFP posted electronically on Federal Business Opportunities, the Internet-based, point>of-entry for federal procurements. See FAR 2.101 (“Government-wide point of entry”). The RFP sought on-site facility support services for temporary housing units at various locations throughout the United States. AR 352. FEMA listed the RFP under the procurement classification code 99, a “miscellaneous” product code. AR 133, 699. After the close of bidding and evaluation of all offers, FEMA informed plaintiff that it was the intended awardee. Compl. ¶ 21.

Before the award was made final, however, TMI Management Systems, Inc. (“TMI”), one of the incumbent FEMA contractors, AR 688, filed a protest with GAO. TMI Mgmt. Sys., Inc., B-401530, 2009 CPD ¶ 191 (Comp.Gen.2009). TMI alleged that FEMA had misclassified the RFP, masking it from TMI’s daily searches for contracting opportunities listed under classification codes more appropriate to the services sought. Id. at *2. After receiving confirmation from FEMA that Madison was the intended awardee, GAO allowed Madison to inteivene in the protest, as an interested party. See PL’s Mot. for J. at 5; AR 666 (Plaintiffs Notice of Intervention in the GAO protest). GAO ultimately sustained TMI’s protest, finding that FEMA’s miselassification had unreasonably deprived TMI of the opportunity to respond to the solicitation, in violation of FEMA’s obligation, under the Competition in Contracting Act,1 to ensure full and open competition. TMI Mgmt. Sys., Inc., 2009 CPD ¶ 191, at *4. GAO recommended that FEMA re-open competition and reissue the solicitation under a more appropriate classification code. Id.

Nine days later, Madison filed the instant protest, challenging FEMA’s “expressed intention” to follow GAO’s recommendation. Compl. ¶ 31. Plaintiff alleged that “[o]n October 1, 2009, FEMA counsel notified Madison that a decision had been made to follow the GAO recommendation.” PL’s Mot. for J. at 7. Plaintiff argued that FEMA’s original [677]*677classification code selection was reasonable, Compl. ¶¶ 33, 35, that GAO’s contrary finding and recommendation were erroneous, id. ¶¶34, 36, and that a choice by FEMA to comply with GAO’s recommendation would itself be unreasonable, id. ¶ 37. The original complaint, challenging the purported reissu-anee decision, recited three counts (I — III), including plaintiffs requests for declaratory and injunctive relief. Id. ¶¶ 32-47.

Defendant has twice moved for dismissal. In its first motion, defendant asserted that the agency action under protest had simply not occurred, and that “FEMA retain[ed] the ability to continue its consideration of this issue, and its ultimate decision [was] not yet known.” Def.’s Mot. to Dismiss at 7. Accordingly, defendant contended that the protest was “premature.” Id. at 8. Ultimately grounding its argument in the doctrine of ripeness, defendant argued further that this lack of ripeness deprived the court of jurisdiction over plaintiffs protest. Def.’s Reply in Supp. of Def.’s Renewed Mot. to Dismiss at 3-4. For its part, plaintiff simply responded that “FEMA has indicated unequivocally its intention to follow the GAO recommendation.” Pl.’s Mot. for J. at 21.

On November 4, 2009, the eve of oral argument on all dispositive motions, defendant filed a renewed motion to dismiss. Notifying the court that FEMA had, that very day, formally cancelled the solicitation, defendant argued that the protest was now moot.2 Def.’s Renewed Mot. to Dismiss at 3-4. FEMA’s cancellation notice indicated that the scope of the agency’s needs, and of the contract services it sought, had changed so substantially as to necessitate cancellation and issuance of a new solicitation. See id., App’x, Attachment A. In response, plaintiff promptly moved to amend its complaint. The proposed amended complaint incorporates plaintiffs original challenge (counts I-III), and adds three counts (IV-VI) challenging FEMA’s cancellation of the solicitation, and seeking declaratory and injunctive relief from that decision. Am. Compl. ¶¶ 25-42.

II. DISCUSSION

The court has “jurisdiction to render judgment on an action by an interested party objecting to ... any alleged violation of statute or regulation in connection with a procurement or a proposed procurement.” 28 U.S.C. § 1491(b)(1). In exercising this “bid protest” jurisdiction, which encompasses the instant matter, the court reviews the challenged agency action pursuant to the standard set forth in section 10(e) of the Administrative Procedures Act (“APA”). 28 U.S.C. § 1491(b)(4) (incorporating 5 U.S.C. § 706); see Impresa Construzioni Geom. Domenico Garufi v. United States, 238 F.3d 1324, 1332 (Fed.Cir.2001). Pursuant to the APA standard, the court must hold unlawful and set aside any “agency action” that is “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.” 5 U.S.C. § 706(2). In order to establish standing as an “interested party” under § 1491(b), a protestor must be an “actual or prospective bidder or offeror whose direct economic interest would be affected by the award of the contract or by failure to award the contract.” Info. Tech. & Applications Corp. v. United States, 316 F.3d 1312, 1319 (Fed.Cir.2003). In turn, to establish this requisite impact or “prejudice” to its direct economic interests, a protestor must show that there is “a substantial chance it would have received the contract award” but for the alleged agency violation. Id.

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Bluebook (online)
90 Fed. Cl. 673, 2009 U.S. Claims LEXIS 704, 2009 WL 5251950, Counsel Stack Legal Research, https://law.counselstack.com/opinion/madison-services-inc-v-united-states-uscfc-2009.