OTI America, Inc. v. United States

68 Fed. Cl. 108, 2005 U.S. Claims LEXIS 287, 2005 WL 2445474
CourtUnited States Court of Federal Claims
DecidedSeptember 23, 2005
DocketNo. 05-904C
StatusPublished
Cited by52 cases

This text of 68 Fed. Cl. 108 (OTI America, 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
OTI America, Inc. v. United States, 68 Fed. Cl. 108, 2005 U.S. Claims LEXIS 287, 2005 WL 2445474 (uscfc 2005).

Opinion

OPINION AND ORDER1

LETTOW, Judge.

Plaintiff, OTI America, Inc. (“OTI”) has presented a bid protest that does not fit neatly into either of the two standard categories of such cases, i.e., a pre-award protest of a proposed procurement or a post-award protest of a contractual award. OTI seeks to invoke the jurisdiction of this court to protest a decision by the Government Printing Office (“GPO”) to cease making any further orders of samples or product from OTI under a previously issued multi-award contract for development of electronic passport covers, preparation of prototypical covers, and production of such covers. Compl. ¶¶ 9-31. OTI avers that its elimination from future orders for prototypes and production of passport covers under the government’s Electronic Passport program was contrary to law and that GPO’s actions were irrational and arbitrary. Id. In response, the government has filed a motion to dismiss for lack of subject-matter jurisdiction pursuant to RCFC 12(b)(1), arguing that OTI’s claim is improperly presented under this court’s bid-protest jurisdiction. Defendant’s Motion to Dismiss (“Def.’s Mot.”) at 1. The government contends that OTI’s claims should be regarded as a matter of contract administration, id. at 8-9, and that at most OTI has a garden-variety claim for breach of contract.2

On the same day it filed its complaint, OTI filed an application for a temporary restraining order and a motion for expedited limited discovery (“PL’s Disc. Mot.”). The court held a hearing on August 22, 2005 at which it denied the request for a temporary restraining order without prejudice for four separate reasons: jurisdiction was uncertain, only redacted materials were available to the court at the time and OTI consequently had difficulty showing a likelihood of success on the merits, OTI had made an insufficient showing of irreparable harm, and equitable relief might disserve national security interests. Hr’g Tr. 57:5 to 59:25 (Aug. 22, 2005). By consent of the parties, briefing of plaintiff’s discovery motion was scheduled to proceed concurrently with briefing on the government’s motion to dismiss. The government has deferred submission of the administrative record of the procurement pending resolution of its motion to dismiss. Hr’g Tr. 16:6 to 17:8, 21:2 to 22:2 (Aug. 22, 2005).

In accord with 28 U.S.C. § 1491(b)(3),3 the court expedited briefing on the government’s [110]*110motion to dismiss and OTI’s motion for discovery, and a hearing on the motions was held on September 2, 2005. Those matters are now ready for decision. For the reasons stated below, both the government’s motion to dismiss and the plaintiffs motion for discovery are denied.

BACKGROUND4

On July 12, 2004, GPO issued solicitation GPO-EP2004 for the purpose of procuring electronic, integrated, circuit-embedded passport covers in conjunction with the U.S. Department of State’s Electronic Passport program. Compl. ¶ 9; Defendant’s Notice of Filing of Additional Material Requested by the Court (“Def.’s Supp.”), Ex. 2 (GPOEP2004 Solicitation) (“Solicitation”) § Cl.l. The goal of the Electronic Passport program is to create a new version of the U.S. passport, to be used by all Americans, that increases security, resists tampering, and expedites processing at all entry points along the U.S. border. Def.’s Mot. at 2; Solicitation § Cl.l. Development of an electronically enhanced passport was contemplated by Congress when it passed Section 303 of the Enhanced Border Security and Visa Entry Reform Act, Pub.L. No. 107-173, 116 Stat. 543 (2002), whereby the government imposed a deadline of October 26, 2005 on countries whose citizens do not require a visa to enter the United States to have a program in place to create and issue “machine-readable passports that are tamper resistant and incorporate biometric and document authentication identifiers.” 8 U.S.C. § 1732(c)(1), amended by Act of Aug. 9, 2004, Pub.L. No. 108-299, 118 Stat. 1100, 1100 (2004).5 In effect, the [111]*111government is developing electronic passports that apply the same standards as those created for foreign nations. Solicitation § C1.1.6

The solicitation contemplated and established a competition among qualifying offerors. Under the solicitation, GPO implemented a procurement consisting of multiple contracts, each containing sequential qualifying steps, for development of an electronic passport, preparation and testing of prototypes, and a final procurement of electronic passport covers. Def.’s Mot at 2-3. According to the Solicitation, GPO “antieipate[d] awarding a contract to the Offeror(s) whose proposal is the most advantageous to the Government, price and other factors considered.” Solicitation § M.l(a). Eighteen offerors submitted initial bids to GPO, and a number of those offerors were awarded one-year contracts, with four option years. Def.’s Mot. at 2;7 see also Hr’g Tr. 6:18 to 7:2 (Aug. 22, 2005). OTI was included among the offerors, and it eventually was awarded a contract. Def.’s Mot. at 14.8

Each contract has various line-item numbers (“CLINs”) which indicate the particular products or services needed for the various stages of development, testing, evaluation, and production. Solicitation § B3. The government noted that it would purchase from a contracting party at least the minimum amount of product listed under “MANDATORY” CLINs, and would reserve the right to purchase any amount, or none at all, for “OPTIONAL” CLINs. Id. § B2. The government provided compensation to eontractors for the products and services purchased under the various CLINs, including those prototypes that were being purchased for testing and evaluation. Hr’g Tr. 41:22-24 (Sept. 2, 2005). The purpose of these payments was to defray at least part of the expense incurred by the contractors in developing and producing this new product. Hr’g Tr. 41:13 to 42:9 (Sept. 2, 2005). The government has conceded that a single award of the ultimate full production was “possible,” but multiple awards were “anticipated,” although only one contractor was likely to receive the bulk of the orders. Solicitation §§ B1.2, Cl.2.8.

These multiple-award contracts delineated four stages of testing and head-to-head evaluation of each contractor’s proposed electronic-passport book cover. Solicitation § C1.3. At stages one and two, GPO determined whether the contractors’ proposed electronic covers satisfied certain objective criteria, but the government concedes that testing stages three and four contain an “element of competition” between different parties’ products. Def.’s Mot. at 15; see Hr’g Tr. 20:20-24 (Sept. 2, 2005). GPO has completed the first two testing stages, and it apparently has embarked, or is about to embark, on stage three (CLIN 0005), a pilot program addressed infra. See Hr’g Tr. 23:16 to 24:18 (Aug. 22, 2005); Hr’g Tr. 23:16 to 24:7 (Sept. 2, 2005); Solicitation § B3, CLIN 0005.

Stage one required that each party certify and provide evidence that their proposed electronic-passport cover met certain inter[112]*112national technical standards, which certification the government could, in its discretion, take action to verify and confirm.

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Bluebook (online)
68 Fed. Cl. 108, 2005 U.S. Claims LEXIS 287, 2005 WL 2445474, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oti-america-inc-v-united-states-uscfc-2005.