PGBA, LLC v. United States

57 Fed. Cl. 655, 2003 U.S. Claims LEXIS 265, 2003 WL 22357727
CourtUnited States Court of Federal Claims
DecidedSeptember 15, 2003
DocketNo. 03-1986C
StatusPublished
Cited by111 cases

This text of 57 Fed. Cl. 655 (PGBA, LLC 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
PGBA, LLC v. United States, 57 Fed. Cl. 655, 2003 U.S. Claims LEXIS 265, 2003 WL 22357727 (uscfc 2003).

Opinion

ORDER

ALLEGRA, Judge.

This contract case is before the court on plaintiffs motion for a preliminary injunction. [656]*656After careful consideration of the briefs filed by the parties, the oral argument, and for the reasons discussed below, the court hereby GRANTS plaintiffs motion for preliminary injunction.

1. FACTS2

In an effort to improve the Military Health Care System, the Department of Defense, through its TRICARE Management Activity (TMA), has developed a plan to streamline the current health care regime and convert what are currently eleven TRICARE regions, administered by four Managed Care Support (MCS) contractors, into three, which are to be administered under new so-called “T-Nex” contracts. As part of this transformation, the plan carves out certain areas of health care administration and management to be provided through separate national contracts. One of these is the TRICARE Dual-Eligible Fiscal Intermediary Contract (TDEFIC contract), which will provide services for individuals, known as TRICARE For Life beneficiaries, who are entitled to benefits both under TRICARE and Medicare. Currently, the four TRICARE MCS contractors all subcontract the claims processing portion of the MCS contract, and plaintiff, PGBA, LLC (PGBA), and intervening-defendant, Wisconsin Physicians Service Insurance Corp. (WPSI), are currently the only two subcontractors performing this work. Consequently, all TRICARE For Life beneficiary claims are processed by either plaintiff or intervening-defendant.

Both plaintiff and intervening-defendant submitted bids to the TMA seeking the TDEFIC contract. On July 25, 2003, TMA. awarded the TDEFIC contract to intervening-defendant. As an unsuccessful bidder, plaintiff filed a protest with the General Accounting Office (GAO) on August 8, 2003. Two days previous, on August 6, 2003, TMA had issued a stop order in response to a protest filed on August 5, 2003, by Unisys Corporation, another unsuccessful TDEFIC bidder, as mandated by the automatic stay provision of the Competition in Contracting Act of 1984 (CICA). On August 16, 2003, TMA’s Director of Acquisition Management and Support issued a memorandum explaining TMA’s decision to override the CICA automatic stay pursuant to 31 U.S.C. § 3553(d)(3)(C). In that memorandum, the Director invoked both of the bases listed in section 3553(d)(3)(C) to justify authorizing the resumption of performance under the TDEFIC contract, namely: “performance of the contract is in the best interests of the United States,” and “urgent and compelling circumstances that significantly affect interests of the United States will not permit waiting for the decision of the Comptroller General concerning the protest.”

On August 22, 2003, plaintiff filed a complaint with this court contesting the override decision, accompanied by, inter alia„ a motion for preliminary injunction, seeking to enjoin TMA from overriding the automatic stay imposed by CICA. On September 3, 2003, defendant and intervening-defendant filed their responses to plaintiffs motion, and on September 5, 2003, plaintiff filed its reply. On September 8, 2003, oral arguments were held on plaintiffs motion for preliminary injunction.

II. DISCUSSION

Plaintiff seeks a preliminary injunction essentially enjoining TMA from overriding the automatic stay imposed by CICA, thereby barring further performance under the awarded contract. In order to obtain a preliminary injunction, plaintiff must demonstrate: (i) a likelihood of success on the merits; (ii) the harm to plaintiff outweighs the harm to defendant; (iii) the public interest is served by enjoining defendant; and (iv) irreparable injury to plaintiff if defendant is not enjoined, including, but not limited to, the absence of an adequate remedy at law. See Delbert Wheeler Constr., Inc. v. United States, 39 Fed.Cl. 239, 251 (1997), aff'd, 155 F.3d 566 (Fed.Cir.1998). No one factor is dispositive to the court’s inquiry as “the weakness of the showing regarding one factor may be overborne by the strength of the [657]*657others. "FMC Corp. v. United States, 3 F.3d 424, 427 (Fed.Cir.1993). Plaintiff bears the burden of proving it is entitled to preliminary injunctive relief by clear and convincing evidence. See Delbert Wheeler, 39 Fed.Cl. at 251; Bean Dredging Corp. v. United States, 22 Cl.Ct. 519, 522 (1991).

The court will consider the parties’ arguments regarding these injunctive elements seriatim.

A. Likelihood of Success on the Merits

Initially, the court must determine whether it is likely that it would overturn the override decision as arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. 28 U.S.C. § 1491(b)(4); see also 5 U.S.C. § 706(2)(A). Regarding this standard, which, as noted, is drawn from the APA, the Supreme Court has stated:

Section 706(2)(A) requires a finding that the actual choice made was not ‘arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.’ To make this finding the court must consider whether the decision was based on a consideration of the relevant factors and whether there has been a clear error of judgment. Although this inquiry into the facts is to be searching and careful, the ultimate standard of review is a narrow one. The court is not empowered to substitute its judgment for that of the agency.

Citizens to Preserve Overton Park, Inc. v. Volpe, 401 U.S. 402, 416, 91 S.Ct. 814, 28 L.Ed.2d 136 (1971) (citations omitted); see also Advanced Data Concepts, Inc. v. United States, 216 F.3d 1054, 1057-58 (Fed.Cir. 2000); Overstreet Elec. Co. v. United States, 47 Fed.Cl. 728, 731 (2000). By its very definition, this standard recognizes the possibility that there exists a zone of acceptable results in a particular case and requires only that the final decision reached by an agency be the result of a process which “consider[s] the relevant factors” and is “within the bounds of reasoned decisionmaking.” Baltimore Gas & Elec. Co. v. Natural Resources Defense Council, Inc., 462 U.S. 87, 105, 103 S.Ct. 2246, 76 L.Ed.2d 437 (1983). The Supreme Court burnished these twin requirements in Motor Vehicle Mfrs. Ass’n of the United States v. State Farm Ins. Co., 463 U.S. 29, 103 S.Ct. 2856, 77 L.Ed.2d 443 (1983), identifying four grounds upon which a holding of arbitrary and capricious agency action could be based:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
57 Fed. Cl. 655, 2003 U.S. Claims LEXIS 265, 2003 WL 22357727, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pgba-llc-v-united-states-uscfc-2003.