Ozdemir v. United States

89 Fed. Cl. 631, 2009 U.S. Claims LEXIS 353, 2009 WL 3790103
CourtUnited States Court of Federal Claims
DecidedNovember 9, 2009
DocketNo. 09-432 C
StatusPublished
Cited by1 cases

This text of 89 Fed. Cl. 631 (Ozdemir 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
Ozdemir v. United States, 89 Fed. Cl. 631, 2009 U.S. Claims LEXIS 353, 2009 WL 3790103 (uscfc 2009).

Opinion

OPINION

DAMICH, Judge.

This pre-award bid protest is before the Court on Defendant’s Motion to Dismiss. According to Mr. Ozdemir’s Complaint, a Department of Energy agency, Advanced Research Projects Agency — Energy (“ARPA-E”), solicited concept papers with the intent to provide research and development funding for highly promising energy-related technologies. Mr. Ozdemir claims that ARPA-E wrongfully refused to accept his concept paper for consideration. The Government argues that the solicitation did not relate to procurement and therefore the Court lacks jurisdiction to hear Mr. Ozdemir’s protest. However, the Court concludes that its protest jurisdiction is not limited to procurement matters and therefore denies Defendant’s Motion to Dismiss.

I. Background

Mr. Ozdemir’s protest stems from an April 27, 2009 solicitation for proposals to conduct Energy Department research and development with a financial assistance award from ARPA-E. Compl. ¶ 3; App. to Def.’s Mot. to Dismiss (“Def.’s App.”) 1. The solicitation indicated that “ARPA-E is a new organization within the Department of Energy (DOE), created specifically to foster research and development (R & D) of transformational energy-related technologies.... ARPA-E will fund scientists and technologists to [develop] an immature technology that promises [633]*633to make a large impact on the ARPA-E Mission Areas.Id. at 2.

The solicitation advised potential offerors that ARPA-E initially requested only “the kernel of your technical idea in the form of a concept paper.” Id. at 3. After reviewing the concept papers, ARPA-E would inform offer-ors whether a full application based on their idea would be likely to receive funding. Id. For those that would ultimately receive funding, the solicitation contemplated three potential types of award instruments: grants, cooperative agreements, or technology investment agreements. Id. at 11.

The solicitation indicated that concept papers were due by June 2, 2009. Id. at 1. Apparently, applicants had to request an application control number by a certain date in advance of June 2, 2009. See App. to Compl., Ex. D. Mr. Ozdemir failed to timely request an application control number. See Compl. ¶ 12. When he submitted his concept paper on June 2, 2009, the contracting officer refused to accept it. Id. Following some efforts to resolve the matter within the Department of Energy, Mr. Ozdemir filed his Complaint in this Court.

II. Discussion

A. The Government’s Motion to Dismiss

When the Government puts the Court’s subject matter jurisdiction in question by moving to dismiss under Rule 12(b)(1) of the Rules of the United States Court of Federal Claims, the plaintiff bears the burden to show by a preponderance of the evidence that jurisdiction is proper. Reynolds v. Army & Air Force Exch. Serv., 846 F.2d 746, 748 (Fed.Cir.1988). In this ease, the Government has questioned the Court’s jurisdiction to hear Mr. Ozdemir’s protest by asserting that the Court cannot adjudicate protests that do not concern procurement and that Mr. Ozdemir’s Complaint does not pertain to procurement. Def.’s Mot. to Dismiss (“Def.’s Mot.”) 1.

Mr. Ozdemir makes several arguments in opposition to the Government’s motion. First, Mr. Ozdemir disputes the Government’s contention that the solicitation does not involve procurement. Pl.’s Opp’n 5. In support of this argument, Mr. Ozdemir points out that within the solicitation itself, ARPA-E states that it will create a “•procurement or financial assistance instrument that best manages the high risk inherent in this kind of’ research and development. Def.’s App. 3 (emphasis added).

The Government discounts the importance of the word “procurement” appearing within the solicitation. “While it is true that [the] word ‘procurement’ appears one time in the introduction to the solicitation, ... the word does not appear in the section that identifies the types of award instruments to be issued,” the Government replies. Def.’s Reply 6. According to the Government, the “Court does not possess jurisdiction to entertain this bid protest, because the three potential award instruments identified in the [solicitation]— grants, cooperative agreements, and technology investment agreements — are not procurement contracts.” Def.’s Mot. 5.

Citing the Federal Grant and Cooperative Agreement Act of 1977, 31 U.S.C. §§ 6301-6308, the Government argues that procurement contracts are distinguishable from the types of research and development instruments contemplated here. Def.’s Mot. 4. According to that Act, executive agencies are to use procurement contracts when (1) “the principal purpose of the instrument is to acquire ... property or services for the direct benefit or use of the United States Government,” or (2) when “the agency decides in a specific instance that the use of a procurement contract is appropriate.” 31 U.S.C. § 6303.1 Grant agreements shall be used when “the principal purpose of the relationship is to transfer a thing of value ... to carry out a public purpose of support or stimulation authorized by a law of the United States instead of acquiring ... property or services,” and “substantial involvement is not [634]*634expected between the executive agency and the ... recipient-” 31 U.S.C. § 6304. Cooperative agreements are also for use in transferring something of value to carry out a public purpose but where “substantial involvement is expected between the executive agency and the ... recipient.” 31 U.S.C. § 6305. The final instrument contemplated in the solicitation, a technology investment agreement, exists in two forms. A technology investment agreement can either be a “type of cooperative agreement with more flexible provisions,” 10 C.F.R. § 603.105(a)(1), or “an assistance transaction other than a cooperative agreement,” 10 C.F.R. § 603.105(a)(2).

As to the latter version of technology investment agreements, the Government attempts to assuage any concerns that these could qualify as procurement contracts by suggesting that there is no reason to believe that Mr. Ozdemir was competing for one of these. Def.’s Mot. 5 n. 2. Of course, Mr. Ozdemir disputes that view of the facts and assures the Court that he “was open to all types of agreements.” PL’s Opp’n 14. In this case, the Court need not decide whether this solicitation concerned a proposed procurement because the Court is persuaded by Mr. Ozdemir’s alternative argument that a connection to a procurement or proposed procurement is not always required. Pl.’s Opp’n 22.

B. Jurisdiction Over Non-Procurement Protests

The Tucker Act, 28 U.S.C.

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Bluebook (online)
89 Fed. Cl. 631, 2009 U.S. Claims LEXIS 353, 2009 WL 3790103, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ozdemir-v-united-states-uscfc-2009.