OTI America, Inc. v. United States

73 Fed. Cl. 758, 2006 U.S. Claims LEXIS 338, 2006 WL 3231343
CourtUnited States Court of Federal Claims
DecidedOctober 31, 2006
DocketNo. 06-571 C
StatusPublished
Cited by7 cases

This text of 73 Fed. Cl. 758 (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, 73 Fed. Cl. 758, 2006 U.S. Claims LEXIS 338, 2006 WL 3231343 (uscfc 2006).

Opinion

OPINION AND ORDER1

LETTOW, Judge.

This bid protest concerns contracts issued by the Government Printing Office (“GPO”), in partnership with the Department of State (“State Department”) and the Department of Homeland Security (“DHS”) for the development of electronic passports on a multi-stage, multi-awardee basis. Under the procurement, GPO awarded eight entities, including plaintiff OTI America, Inc. (“OTI”), identical contracts to develop prototypes of electronic passport book covers or other sheets (“sheets”) with embedded integrated circuit chips. If an awardee then passed a series of test stages, it would be eligible to receive orders to produce sheets bearing electronic chips for use in a pilot passport program and, ultimately, for full production of electronic materials for all new U.S. passports.

This is the second time OTI has been before the court challenging an action by GPO under the matching contracts. In November 2005, this court considered a bid protest by OTI after OTI had been eliminated from the multi-contractor competition and granted partial relief, ordering that OTI be reinstated into the competition and that GPO “resume testing OTI’s products at the same stage at which OTI was eliminated.” OTI America, Inc. v. United States, 68 Fed.Cl. 646, 661 (2005) (‘‘OTI II”).2 GPO duly reinstated OTI along with another contractor that had been eliminated, and thereafter resumed testing the prototype products of OTI, the other contractor that was reinstated, and one other contractor that remained viable in the competition at the testing stage.3 The products of OTI and the other two contractors successfully passed the intermediate testing stages and advanced to the final stage. At that point, OTI and one of the other two contractors were eliminated from the competition because of test failures.

OTI then filed this further bid protest on August 4, 2006. In its complaint, OTI al[761]*761leged that GPO’s decision to eliminate OTI from the competition was contrary to law, lacked a rational basis, and relied on undisclosed selection criteria. Compl. at 1. OTI requested an injunction requiring GPO to reinstate OTI into the competition, a temporary restraining order pending the court’s consideration of its request for a preliminary injunction, and a preliminary injunction pending final judgment on the merits in this case. Compl. at 1; Pl.’s Emergency Mot. for Temporary Restraining Order and Preliminary Injunction at 1. The government filed a motion to dismiss on August 8, 2006, arguing that this court lacked subject matter jurisdiction to hear OTI’s claims, but in light of the court’s jurisdictional ruling in OTI I, the government subsequently withdrew that motion on September 18, 2006. By an order dated August 10, 2006, this court denied OTI’s application for a temporary restraining order, and on August 14, 2006, the court adopted an expedited schedule for submitting the administrative record and for filing cross-motions for judgment on the administrative record.4 A hearing on the cross-motions for judgment was held on September 28, 2006, and supplemental filings were received on October 6 and 12, 2006.

For the reasons set forth below, the government’s motion for judgment on the administrative record is granted and plaintiff’s motion for judgment on the administrative record is denied.

FACTS5

A. Background

As part of a cooperative effort with the State Department and DHS to develop an electronic U.S. passport, GPO issued Solicitation GPO-EP2004 (“Solicitation”) on July 12, 2004. 2005 Administrative Record (“2005 AR”) 4, 24 (Solicitation § Cl.l). By replacing traditional passports with electronic ones, the government aims to “enhance the security of the passport and facilitate the movement of travelers at points of entry.” 2005 AR 24 (Solicitation § Cl.l). To accomplish these goals, the Solicitation required offerors to provide passport book covers or sheets that contained an “[integrated circuitj/antenna assembly in a protective plastic envelope,” as well as associated electronic “reader/writers.” 2005 AR 24, 27 (Solicitation §§ Cl.l, Cl.3.2).

The government’s decision to use electronic passports was related to the requirements of the Enhanced Border Security and Visa Entry Reform Act of 2002, Pub.L. No. 107-173, 116 Stat. 543 (2002) (“Enhanced Border Security Act”) (codified, as amended, at 8 U.S.C. §§ 1701-1775). 2005 AR 24 (Solicitation § Cl.l). Section 303 of that Act required each foreign country participating in the Visa Waiver Program6 to certify by October 26, 2004 that it had in place a program to issue electronic passports compliant with standards established by the International Civil Aviation Organization (“ICAO”). Enhanced Border Security Act § 303(c)(1), 116 Stat. at 554 (codified, as amended, at 8 U.S.C. § 1732); see also 8 U.S.C. § 1187 (2002) (providing the statutory basis for the Visa Waiver Program).7 Thus, citizens of countries participating in the Visa Waiver Program generally would only be permitted to travel to the United States without a visa if they held ICAO-compliant electronic passports. See Enhanced Border Security Act § 303(c)(1), 116 Stat. at 554 (codified, as [762]*762amended, at 8 U.S.C. § 1732(c)(1)); 8 U.S.C. § 1187.

When it became apparent that participating countries would not be able to meet the Visa Waiver Program’s October 2004 deadline, Congress, at the urging of the State Department and DHS, extended the deadline to October 26, 2005. Def.’s Mot. for Judgment on the Administrative Record at 4 (“Def.’s Mot.”); Act of Aug. 9, 2004, Pub.L. No. 108-299, § 1, 118 Stat. 1100 (2004) (amending 8 U.S.C. § 1732). Roughly ten months later, recognizing that few, if any, participants in the Visa Waiver Program would be able to meet the extended deadline, the Secretary of DHS announced on June 15, 2005, that participating countries would be required to produce passports with electronic photographs by October 26, 2005 and to present an “acceptable plan” to issue passports with integrated circuit chips by October 26, 2006. Def.’s Mot. at 4; Def.’s Mot. to Dismiss Protest at 4.8 Although the United States is not itself obliged to comply with the requirements of the Enhanced Border Security Act, in the interest of enhanced border security, international comity, and reciprocity, it is implementing its own electronic passport program to meet the same requirements as those applicable to countries participating in the Visa Waiver Program. Def.’s Mot. at 5; 2005 AR at 24-25 (Solicitation § Cl.l).

To reduce risk to the government, the Solicitation was designed as a “multi-[o]ffer- or, multi-option procurement,” 2005 AR 29 (Solicitation § C3), under which contracts would be awarded to multiple offerors, calling for completion of various sequential developmental and testing stages, with the ultimate goal of making a “high volume purchase of book covers ...

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73 Fed. Cl. 758, 2006 U.S. Claims LEXIS 338, 2006 WL 3231343, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oti-america-inc-v-united-states-uscfc-2006.