Mississippi Department of Rehabilitation Services v. United States

61 Fed. Cl. 20, 2004 U.S. Claims LEXIS 140, 2004 WL 1366016
CourtUnited States Court of Federal Claims
DecidedJune 4, 2004
DocketNo. 03-2038C
StatusPublished
Cited by15 cases

This text of 61 Fed. Cl. 20 (Mississippi Department of Rehabilitation Services 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
Mississippi Department of Rehabilitation Services v. United States, 61 Fed. Cl. 20, 2004 U.S. Claims LEXIS 140, 2004 WL 1366016 (uscfc 2004).

Opinion

OPINION

BASKIR, Judge.

Plaintiff, Mississippi Department of Rehabilitation Services (MDRS), brings this preaward bid protest against the Department of the Navy (Navy) alleging that the Navy failed to afford blind persons the priority they are due under the Randolph-Sheppard Act, 20 U.S.C. §§ 107-107f (RSA or Act), in connection with solicitation No. N00140-03R-1763 (RFP or solicitation). The solicitation at issue is for an award of a food services contract at the Naval Air Station in Meridian, Mississippi (NAS Meridian).

The Plaintiff and Defendant have filed Cross-Motions for Judgment Upon the Administrative Record. Because we conclude the request for proposals is for a contract “to operate” a food facility within the meaning of the RSA, the Plaintiff’s Motion for Judgment on the Administrative Record is hereby granted and the Defendant’s Cross-Motion is hereby denied.

Background

The Randolph-Sheppard Act:

Congress enacted the RSA in 1936 in order to enlarge economic opportunities for the blind, amending the Act twice, in 1954 and 1974. State and Federal agencies share responsibility in administering the Act. MDRS is the State Licensing Agency (SLA) for the State of Mississippi charged with carrying out the purposes of the RSA. Among other things, the Act provides that blind persons licensed by a SLA will be given priority in the operation of vending facilities on Federal property. 20 U.S.C. § 107(b). MDRS alleges that the RSA applies to the NAS Meridian solicitation, a contention that the Navy, through its Naval Supply Systems Command, rejects.

The Secretary of the United States Department of Education (DOE) administers the RSA, and has promulgated regulations through the DOE’s Office of Special Education and Rehabilitation Service. 34 C.F.R. §§ 395.1-395.38. The regulations provide that “[pjriority in the operation of cafeterias by blind vendors on Federal property shall be afforded” when the Secretary, in consultation, determines that such operation “can be provided at a reasonable cost, with food of a high quality comparable to that currently provided employees.” 34 C.F.R. § 395.33. Further, the appropriate state SLA “shall be invited to respond to solicitations for offers when a cafeteria contract is contemplated.” Id. If the SLA’s proposal is judged within a competitive range, then the regulations’ priority provisions come into effect and the property managing department must consult with the Secretary.

The Department of Defense (DoD) has also issued regulations implementing the RSA. 32 C.F.R. §§ 260.1-260.6. These regulations reaffirm that “the blind will be given a priority in award of contracts to operate cafeterias,” on DoD controlled property. 32 C.F.R. § 260.3(b). This priority ensures that if the SLA’s proposal is in the competitive range it will be awarded the contract, barring a determination that the award would be [23]*23adverse to the interests of the United States. 32 C.F.R. § 260.3(f). At issue in this matter is whether the Navy’s solicitation calls for the “operation” of a cafeteria within the meaning of the RSA, thus triggering the Act’s priority provisions.

Commissioners of the Rehabilitative Services Administration of the DOE (Commissioners) and the General Counsel of the DoD have issued interpretive opinions that serve to guide us in the application of the RSA. In March of 1992, then Commissioner Nell C. Carney issued a letter (Carney letter) to the Committee for Purchase from the Blind and Other Severely Handicapped (Committee) interpreting the phrase “operation of a cafeteria.” He concluded that a contract met this standard if all but an insignificant portion of responsibilities was contracted out.

In January of 1999, then Commissioner Fredric K. Schroeder retracted this guidance because it was too limiting (Schroeder letter). Rather than offer a different measure by which to evaluate the contractor’s role, he merely said — unhelpfully—that each solicitation should be evaluated on a case-by-case basis.

On November 12, 1998, DoD General Counsel Judith A. Miller issued an opinion reinforcing the DOE view that RSA applied in general to mess halls and other DoD eating facilities irrespective of their military name or character (DoD memo). Administrative Record (AR) at 412. She also made clear’ the RSA, in her words “trumps” other contracting preferences, such as set-asides under section 8(a) of the Small Business Act. She based her conclusions on her reading of the RSA, DOE guidance (the Carney letter) and Comptroller General opinions. While rejecting what we may call litmus tests or “definitional” distinctions, the memo cites to the Carney letter, but does not explicitly adopt it. It is with this regulatory backdrop in mind that we examine the Navy’s solicitation.

The Navy’s solicitation:

The facts of this case reveal a considerable history between MDRS and the Contracting Officer (CO), Mr. James O’Sullivan, regarding the applicability of the RSA to the NAS Meridian’s dining facilities, going back to the award of an earlier contract in October of 1998.

A review of the correspondence between the parties during the earlier solicitation provides an interesting backdrop to the instant controversy. Mr. O’Sullivan has been firm in his view that the RSA does not apply to the NAS Meridian, with one brief exception. During the written debate between Mr. O’Sullivan and MDRS surrounding the first solicitation, an amendment to the solicitation was issued acknowledging that the RSA applied. Pl.’s Brief filed Jan. 27, 2004, at App. tab 15. This position was retracted, and a subsequent amendment was issued excluding RSA bidders on the basis of advice from the Department of the Army. Id.

At this time, Mr. O’Sullivan rested on what we may call a “definitional” argument. He reasoned that the NAS Meridian facility was a “galley,” an “appropriated fund military dining facility” that was part of the military mission. It was not a “vending facility,” and so was not covered by the RSA. Although MDRS contested this definitional exclusion, MDRS did not submit a bid for the 1998 contract, and for reasons we do not know, never insisted on its position by means of a bid protest.

The correspondence between the parties began anew in February of 2003, as the end of the initial contract approached. On February 13, 2003, MDRS, in anticipation of a new solicitation, sent a letter to the Navy expressing an interest in bidding. AR at 428. The letter asserted that the RSA affords MDRS a statutory priority in the operation of the NAS Meridian food service contract. It references statutes, ease law and the DoD memo as support for its argument. The DoD memo explicitly rejects Mr. O’Sullivan’s definitional approach: “the assertion that the Act does not apply to military dining facilities cannot withstand analysis.” AR at 415.

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61 Fed. Cl. 20, 2004 U.S. Claims LEXIS 140, 2004 WL 1366016, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mississippi-department-of-rehabilitation-services-v-united-states-uscfc-2004.