National Harbor Gp, LLC v. Government of the District of Columbia

121 F. Supp. 3d 11, 2015 U.S. Dist. LEXIS 107620
CourtDistrict Court, District of Columbia
DecidedAugust 17, 2015
DocketCivil Action No. 2014-2108
StatusPublished
Cited by5 cases

This text of 121 F. Supp. 3d 11 (National Harbor Gp, LLC v. Government of the District of Columbia) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Harbor Gp, LLC v. Government of the District of Columbia, 121 F. Supp. 3d 11, 2015 U.S. Dist. LEXIS 107620 (D.D.C. 2015).

Opinion

MEMORANDUM OPINION

JAMES E. BOASBERG, United States District Judge

No one buys an instant lottery ticket expecting he is guaranteed to scratch, off a million dollars. But everyone who buys a ticket expects to have a fair chance, however slim it may be. In similar fashion, when the District of Columbia issues a request for proposals from businesses to provide instant lottery tickets, prospective bidders expect they will each have a shot at winning the contract. Plaintiff National Harbor, LLC, doing business as Metropolitan Gaming, is a black-owned business that here alleges that the District deprived it of that fair chance. Plaintiff claims that the District, in altering the requirements midway through the bidding procedure in order to ■ exclude Metropolitan from any possibility of winning, unlawfully discriminated against it.

*13 In response to the District’s maneuvers, Plaintiff twice filed protests with the Contract Appeals Board, .the administrative agency that reviews the city’s procurement process. Although the CAB ultimately dismissed the protests, Metropolitan nonetheless brought this lawsuit alleging that the city had discriminated against it in violation of 42 U.S.C. §§ 1981 and 1988. In response, the District now moves. to dismiss, arguing that Plaintiff lacks standing, did not adequately -exhaust its administrative remedies, and is precluded from bringing suit in federal court by the CAB’s prior judgment.

The Court believes dismissal is unwarranted at this stage. Metropolitan does have standing here, and requiring administrative exhaustion or invoking claim preclusion is inapt given the statutory scheme in place and the particular nature of Plaintiffs claim of unlawful discrimination arising under §§ 1981 and 1983. Metropolitan, nevertheless, faces significant hurdles going forward, given that the CAB has already adjudicated a considerable portion of the facts in a manner adverse to it, which findings may ultimately bind the Court.

I. Background

At the motion-to-dismiss stage, .the Court must draw on the .facts as alleged by Plaintiff, but it also relies on the CAB’s related Order of March 6, 2015. See Protests of: Rmd Nat’l Harbor Gp, LLC d/b/a Metro. Gaming, DCCAB No. P-0967, 2015 WL 1090168 (D.C.C.A.B. Mar. 6, 2015) [hereinafter “DCCAB Protest”]. The Board’s Order is a public record, and the Court may take judicial notice of it in considering this Motion. See Covad Communications Co. v. Bell Atl. Corp., 407 F.3d 1220, 1222 (D.C.Cir.2005) (taking judicial notice of facts in public record at motion-to-dismiss stage); see also 5B Charles A. Wright & Arthur R. Miller, Federal Practice and Procedure § 1357 (3d ed.2004).

Before detailing the Specific allegations here,- some brief background on the District’s procurement process and the status of Certified Business Enterprises is in order.

A. Procurement Contracts

The District use's procurement contracts for a range-of government services' performed by outside entities. These are overseen primarily by its Office of the Chief Financial Officer (OCFO).. See Am. Compl,, ¶ 5. This includes operations for the District of Columbia Lottery Board (“Lottery Board”). See id.

As ■ alleged ;in its Amended Complaint, Metropolitan is a black-owned limited-liability company organized under the laws of Delaware and properly registered to do business in the District of Columbia, See id., ¶ 3, Between 2009 and April 2015— including the period during which the alleged events took place" — Metropolitan'was recbgnized as a Certified' Business Enterprise (CBE) by the District of Columbia Department of Small and Local Business Development (DSLBD). See id. Metropolitan, concedes that it does not at present maintain a CBE certification. See id.

Both parties agree that Metropolitan’s CBE status is of central relevance to this case. Plaintiffs claim of unlawful discrimination rests on the District’s alleged gambit of sidestepping its standard procurement process, which gives preference to CBE-certified entities. As Plaintiff details in its Amended Complaint, when-the city seeks to contract with outside entities, the DSLBD typically requires' that all respondents to solicitations' be eithér CBE-certified themselves or else provide a subcontracting plan that includes at least 35% CBE-certified subcontracting. See id., *14 ¶¶ 9 & n.2, 16; D.C. Code §§ 2-218.46(a)(2)(A)-(B). According to the DSLBD, the purpose of the CBE certification is to “provide[ ] preference to District-based firms pursuing District Government issued procurement opportunities----” CBE Program History, Department of Small and Local Business Development, http://www.dslbd.dc.gov/service/cbeprogram-history/ (last visited Aug. 13, 2015); see also Am. Compl, ¶ 12. The DSLBD grants CBE certification to businesses that demonstrate that a sufficient share of their assets, sales, and/or employees are located within the District of Columbia. See Am. Compl., ¶ 12. Under ordinary circumstances, unless the District is granted a waiver from this requirement, the CBE mandate may trump otherwise-competitive bids and proposals that lack participation by a CBE-certified contractor or subcontractor.

Here, the claim of discrimination hinges on showing that Defendant voided the original CBE requirement in order to exclude Metropolitan, the only CBE-certified business submitting a bid to provide instant-lottery ticket services in response to the District’s Invitation for Bids. See id., ¶¶28, 36, 63. While Defendant’s initial solicitation contained the standard CBE requirement, which could be met by use of CBE-certified subcontractors like Metropolitan, Plaintiff alleges that the District later sought and obtained a waiver from these requirements so as to exclude it from having the opportunity to submit a bid. It claims that Defendant then directly initiated negotiations with all three of the other bidders, each of which is a white-owned, non-CBE-certified business. See id., ¶¶42, 66. As Plaintiff believes that the full history of the events is necessary to understand its discrimination claim, the Court recites it in some detail.

B. Instant-Lottery Ticket Services

Between 2012 and 2014, the District’s OCFO — the office responsible for soliciting contracts for the Lottery Board — issued several solicitations in order to secure a long-term contract for instant-lottery ticket services in the District. See id., ¶ 5. OCFO issued the first solicitation relevant to this lawsuit on October 22, 2012. See id., ¶ 6. Its Request For Proposal (RFP) No.

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Bluebook (online)
121 F. Supp. 3d 11, 2015 U.S. Dist. LEXIS 107620, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-harbor-gp-llc-v-government-of-the-district-of-columbia-dcd-2015.