Modern Technologies Corp. v. United States

44 Fed. Cl. 319, 1998 U.S. Claims LEXIS 315, 1998 WL 954450
CourtUnited States Court of Federal Claims
DecidedDecember 21, 1998
DocketNo. 98-309C
StatusPublished

This text of 44 Fed. Cl. 319 (Modern Technologies Corp. 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
Modern Technologies Corp. v. United States, 44 Fed. Cl. 319, 1998 U.S. Claims LEXIS 315, 1998 WL 954450 (uscfc 1998).

Opinion

ORDER

HARKINS, Judge.

The case file maintained by the Clerk for this post-award claim consists of a mixture of documents to which the public has access and documents that are presently not available to the public. Such documents have been filed under seal on plaintiffs and intervenors’ assertions that they contain proprietary information, or on defendant’s assertion that they contain protected source selection sensitive information.

Documents presently under seal include: MTC’s complaint and related papers, filed April 2,1998; MTC amended complaint, filed May 8, 1998; the entire administrative record, filed April 17, 1998, with supplements filed by MTC on May 8, 1998, except the RFP and its amendments; and the motion to intervene, filed by Semcor on April 9, 1998. Documents filed with the clerk, without restriction include: RJO’s motion to intervene, filed April 3, 1998; Order, April 23, 1998, re intervenors RJO and Semcor; defendant’s notice of filing of the administrative record on April 27, 1998; defendant’s motion for summary judgment, filed May 8, 1998, with response to plaintiffs motion for preliminary injunction; Semcor’s answer to amended complaint, filed May 18, 1998; defendant’s answer to amended complaint, filed May 22, 1998; protective order, filed April 9, 1998; and Orders: dated April 3, 1998, on first evidentiary proceeding; April 24, 1998, on four applications for access to materials under protective order; May 11, 998, on eight administrative matters; May 20, 1998, on telephone conference with representatives of MTC, RJO, Semcor and defendant.

This problem originates in the terms of the protective order recommended by the parties and authorized under General Order No. 38, dated May 7, 1998 (G.O. 38) The protective order in this case (MTC order), entered April 9, 1998, with minor differences embodies the standards accepted by the court in G.O. 38. Filing under seal by the parties in G.O. 38 is authorized in the notice to counsel, ¶8 4 through 7; the terms of the protective order are approved in the notice to counsel, ¶8 11 through 15, and in Appendix II which contains an example protective order (Sample order).

Both the Sample order and the MTC order define protected information s information “designated” by a party. ¶ 1(a) and (b). Both the MTC order and the Sample order provide that the confidentiality of information learned pursuant to the protected order “shall be maintained in perpetuity.” ¶ 7. Within 30 days after conclusion of all appeals of the action, each private party must destroy all protected information or return all protected information to the originating party. Counsel for each party “may retain one copy of the unredacted pleadings.” Sample order, ¶ 8; MTC order, ¶ 9. Any party by written notice may waive protection at any time for any and all information it has designated as protected. Sample order, ¶ 9; MTC order, ¶ 10.

[320]*320This court is a Federal court of record, 28 U.S.C. § 171. Judicial proceedings on claims against the government as a matter of policy are presumed to be available to the public. The statute provides: “All decisions of the Court of Federal Claims shall be preserved and open to inspection.” 28 U.S.C. § 174(b).

The protective order recommended by the parties has resulted in a situation where the general public may be denied access in perpetuity to information in a judicial case file that private contractors and executive agencies have designated as protected proprietary information or protected source selection sensitive information. Such result does not implement the “full and open competition” policies applicable to government procurement contracts nor does it give effect to the presumption that the basis for decision in judicial case files should be available to the public. Availability of judicial public records implements oversight of compliance to statutory and regulatory requirements.

The RFP for this procurement contract was issued July 8, 1997; contact award was approved on October 29, 1997. The GAO decision on MTC’s protest was made on March 4, 1998; MTC’s complaint in its post-award claim was filed on April 2, 1998. The memorandum of decision was filed under seal on June 24, 1998, and the order on MTC’s motion for reconsideration was filed under seal on July 2, 1998. Judgment dismissing the complaint was entered July 2, 1998. Time to appeal expired in 60 days; no appeal of the July 2, 1998, final judgment, was taken.

In order to clarify the status of information subject to the protective order, counsel for MTC, RJO, Semcor and defendant, on July 14, 1998, were each directed to file a statement of its position on waiver under paragraph 10 of the protective order as to “all pleadings and documentary information,” and to identify with specificity any protected information not waived. The order also directed that requests for redaction of any part of the memorandum of decision be identified by reference to page and line, and the basis for the request be stated with specificity.

I. Position on Waiver

Each of the parties declined to waive the protection provided by the MTC order for proprietary or source selection sensitive information applicable to the particular party. MTC, RJO and Semcor each requested that protection continue as to its entire proposal in response to the RFP, documents that contain agency evaluations of its proposal, as well as any documents which analyze the content of the proposals, labor rates, G & A and overhead rates of the 17 private companies that responded to the RFP. Defendant wants the protection to continue with respect to the administrative record, pleadings, and all other documents filed under seal. Defendant points out that the administrative record “reflects proprietary information and the Air Force’s evaluative processes, primarily with respect to the parties in this case, but also with respect to additional parties involved in the Omnibus contract bidding process who were not parties to this action.”

All parties recommend that the procedure permitted in paragraph nine of the MTC order be followed. That procedure permits the parties’ to destroy or return all protected information “within 30 days after the conclusion of this action (including any and all appeals),” and permits each party to retain “one copy of the unredacted pleadings” provided they are marked protected and are properly secured. Application of this procedure could have the result that MTC, RJO, Semcor, and the Departments of Justice and Air Force, would have unredacted copies of case file documents containing protected information, but unredacted copies of documents filed under seal would not be public records available to nonparties.

Reasons for the objections to waiver of the MTC order protections include: (1) the protected information has been filed under seal in reliance on the provision in paragraph 7 of the MTC order that “confidentiality____ shall be maintained in perpetuity”; (2) the Trade Secrets Act, Í8 U.S.C. § 1905; (3) the Office of Federal Procurement Policy Act, 41 U.S.C. § 423 (1994), Procurement Integrity; (4) the procurement integrity provisions of the FAR (FAR § 3.104); and (5) the GAO [321]

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Cite This Page — Counsel Stack

Bluebook (online)
44 Fed. Cl. 319, 1998 U.S. Claims LEXIS 315, 1998 WL 954450, Counsel Stack Legal Research, https://law.counselstack.com/opinion/modern-technologies-corp-v-united-states-uscfc-1998.