Planetspace Inc. v. United States

90 Fed. Cl. 1, 2009 WL 3808619
United States Court of Federal Claims·Decided November 10, 2009·No. No. 09-476 C·Published·Cited by 35 cases

Opinion

OPINION and ORDER

BLOCK, Judge.

On December 23, 2008, the National Aeronautics and Space Administration (“NASA”) issued its final award decision in a negotiated procurement for commercial resupply services to the International Space Station (the “ISS-CRS” procurement). NASA awarded contracts to the two intervenors, Space Exploration Technologies Corporation (“Spaee-X”) and Orbital Sciences Corporation (“Orbital”), but not to plaintiff, PlanetS-paee Inc. (“PlanetSpace”). On July 23, 2009, PlanetSpace filed a post-award bid protest in this court, seeking declaratory and injunctive relief. Pending before the court, and the subject of upcoming oral argument, are the parties’ cross-motions for judgment on the administrative record. Also pending, however, are three motions concerning the content [4]*4of the record upon which the court must ultimately base its dispositive ruling.

First, defendant has moved to strike three declarations that were attached to, and extensively cited in, plaintiffs motion for judgment on the administrative record. Second, defendant has moved to correct the administrative record, seeking to add two documents relating to NASA’s assessment of the compliance of Orbital’s proposal with the United States Space Transportation Policy (“Space Policy”). Third, plaintiff has moved to supplement the administrative record, seeking to add 151 pages of documents that it received in response to a request for documents, submitted to the Office of Science and Technology Policy (“OSTP”), pursuant to the Freedom of Information Act (“FOIA”).

For the reasons detailed below, (1) defendant’s motion to strike is granted-in-part, and denied-in-part, and (2) defendant’s motion to correct the administrative record is granted. Partly because the court finds the parties’ arguments on admissibility of the FOIA material to be closely intertwined with the merits of plaintiffs protest, the court withholds its decision on plaintiffs motion to supplement the record.

I. The Scope of the Evidentiary Record in a Bid Protest

In a bid protest, the court reviews the challenged agency decision to determine if it was “arbitrary, capricious, an abuse of discretion or otherwise not in accordance with law.” 5 U.S.C. § 706(2)(A) (cited in 28 U.S.C. § 1491(b)(4)). As a general rule, the “focal point for judicial review [of the challenged agency decision] should be the administrative record already in existence, not some new record made initially with the reviewing court.” Camp v. Pitts, 411 U.S. 138, 142, 93 S.Ct. 1241, 36 L.Ed.2d 106 (1973). The court’s task is “to apply the appropriate APA standard of review, 5 U.S.C. § 706, to the agency decision based on the record the agency presents to the reviewing court.” Fla. Power & Light v. Lorion, 470 U.S. 729, 743-44, 105 S.Ct. 1598, 84 L.Ed.2d 643 (1985). The purpose of limiting review to the record actually before the agency is to guard against converting the highly deferential APA review, under the “arbitrary and capricious” standard, into effectively de novo review of the merits of the agency’s decision. Axiom Res. Mgmt. v. United States, 564 F.3d 1374, 1380 (Fed.Cir.2009) (citing Murakami v. United States, 46 Fed.Cl. 731, 735 (2000)). Therefore, supplementation of the administrative record is permissible only where omission of the extra-record evidence would “frustrate effective judicial review.” Id. at 1381 (quoting Pitts, 411 U.S. at 142-43, 93 S.Ct. 1241).

The conceptual elegance evinced by these fundamental principles of administrative law, as articulated by the Supreme Court in Pitts and Florida Power & Light, masks the practical difficulty of identifying where the “administrative record” ends and where “extra-record” evidence begins. As the court previously observed, the “administrative record” is something of a fiction: an agency’s decision is never based upon a rigid, formal record that is then certified for court review. Cubic Applications, Inc. v. United States, 37 Fed.Cl. 345, 350 (1997). Rather, the agency has to exercise some judgment in furnishing the court with materials that adequately document the facts and reasoning supporting the agency’s decision.

Accordingly, if the administrative record is equated with “the record the agency presents to the reviewing court,” Florida Power & Light, 470 U.S. at 744, 105 S.Ct. 1598, then it is merely “a convenient vehicle for bringing the decision of an administrative body before a reviewing agency or a court,” CCL Serv. Corp. v. United States, 48 Fed.Cl. 113, 118 (2000). On the other hand, the contents of the administrative record cannot be wholly contingent. Certain documents are necessarily part of the administrative record, notwithstanding their omission from an agency’s submission. See, e.g., Kerr Contractors, Inc. v. United States, No. 09-523 C, 2009 WL 3319981, at *23 (Fed.Cl. Oct.13, 2009) (holding that a form providing the agency’s responses to a bidder’s questions about the solicitation “should have been included in the administrative record in this case.” (emphasis added)). This difficulty in delineating the boundaries of the administrative record counsels in favor of “a flexible [5]*5approach,” in balancing the limited nature of APA review with the potential need to go beyond the four corners of the agency’s submission, in order to permit meaningful judicial review. Cubic, 37 Fed.Cl. at 350.

The court has often looked to a D.C. Circuit decision, Esch v. Yeutter, identifying specific circumstances, or “exceptions,” under which supplementation of the administrative record is permissible. 876 F.2d 976, 991 (D.C.Cir.1989). Unfortunately, some of the Esch exceptions “are so broadly worded as to risk being incompatible with the limited nature of arbitrary and capricious review.” Murakami, 46 Fed.Cl. at 735 n. 4. Rather than helping to discipline the court’s adoption of Cubic’s “flexible approach,” 37 Fed.Cl. at 350, Esch may have led the court to stray too far from “fundamental principles of administrative law.” See Axiom, 564 F.3d at 1380-81 (finding “problematic” the trial court’s over-reliance on Esch, and holding its admission of extra-record evidence to be an abuse of discretion). The Axiom panel “recognized that supplementation of the agency record is sometimes warranted in the trial court, even in the bid protest context.” Walls v. United States, No.2008-5179, 2009 WL 3082293, at *20 (Fed.Cir. Sep.29, 2009). Nevertheless, Axiom clearly signaled the Federal Circuit’s adoption of a “more restrictive” view of the permissible scope for supplementation of the administrative record in a bid protest. 564 F.3d at 1380-81. In light of this, neither indiscriminate admission nor indiscriminate denial of all materials proffered by the parties is appropriate in a bid protest.

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Planetspace Inc. v. United States, 90 Fed. Cl. 1, 2009 WL 3808619 (uscfc 2009).

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