Proxtronics Dosimetry, LLC v. United States

128 Fed. Cl. 656, 2016 U.S. Claims LEXIS 1434, 2016 WL 5757156
CourtUnited States Court of Federal Claims
DecidedSeptember 30, 2016
Docket15-1589
StatusPublished
Cited by19 cases

This text of 128 Fed. Cl. 656 (Proxtronics Dosimetry, 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
Proxtronics Dosimetry, LLC v. United States, 128 Fed. Cl. 656, 2016 U.S. Claims LEXIS 1434, 2016 WL 5757156 (uscfc 2016).

Opinion

Bid Protest; Motion to Dismiss; RCFC 12(b)(1); RCFC 12(b)(6); Lanham Act; Federal Question; Diversity; Intellectual Property; Standing; Waiver; Mootness; Jurisdictional Discovery

OPINION AND ORDER

SWEENEY, Judge

Before the court are defendant’s motion to dismiss plaintiffs third amended complaint pursuant to Rules 12(b)(1) and 12(b)(6) of the Rules of the United States Court of Federal Claims (“RCFC”) and plaintiffs motion to conduct jurisdictional discovery. In the underlying bid protest, plaintiff Proxtronics Do-simetry, LLC (“Proxtronics”) challenges two separate contract awards by the United States Air Force (“Air Force”) to Radiation Detection Company (“RDC”) for the acquisition of Thermoluminescent Dosimeter (“TLD”) badges by Wright-Patterson Air Force Base (“AFB”) in Ohio. For the reasons set forth below, the court grants defendant’s motion to dismiss and denies plaintiffs motion to conduct jurisdictional discovery.

I. BACKGROUND

A. Plaintiff and Its Sale of Panasonic-Brand TLD Badges

Plaintiff was established in 1990 as a supplier of radiation monitoring products and services, including TLD badges. 1 3rd Am. *663 Compl. ¶¶ 10-11, 16. A TLD badge, which measures radiation levels, is an important safety tool utilized by the Air Force to protect its personnel from unsafe levels of radiation. Pl.’s Ex. L. More generally, the Air Force:

monitors, records, and reports radiation levels of medical and other personnel routinely exposed to radiation in the performance of their duties or individuals entering high radiation areas. TLDs are used to record the medical legal dose of record of personnel working in the labs as required by [law]. Phased replacement of the TLD[s] is an established recurring program requirement.

Id. at 11. 2

By 2004, plaintiff was “the fourth largest personal radiation monitoring services entity in the United States.” 3rd Am. Compl. ¶ 11. Eventually, plaintiff “established itself as an international supplier of dosimetry needs in Switzerland, Mexico, Costa Rica, and Brazil wherein it[] marketed], distribute^], and s[old] a wide range of environmental, industrial, medical and security dosimetry applications.” Id.

Plaintiff has provided TLD badges and services to the Air Force under prior contracts. Id. ¶ 15. Specifically, plaintiff is an “incumbent for these very services under an [indefinite delivery indefinite quantity (“IDIQ”) ] contract with the Air Force Institute for Environment, Safety and Occupational Risk Analysis ... at Brooks AFB.” Id In addition, plaintiff has “worked with the Air Force Center for Radiation Dosimetry and maintained the U.S. Air Force Master Radiation Exposure Registry.” Id.

Plaintiff has a history of purchasing TLD badges and other dosimetry products directly from Panasonic Industrial Devices Sales Company of America (“Panasonic”). Id. ¶ 16. For example, on June 12, 2013, Panasonic responded by electronic-mail message to a purchase inquiry from plaintiff advising that it would “be delighted to extend to Proxtronics an offer on the TLD equipment as soon as [it] reeeive[d] the Bill of Material,” and that “[t]he offer [would] be limited to the supply of the product, but exclude[] installation and/or training.” Pl.’s Ex. C. Although the initial price quotation excluded installation and training, Panasonic further advised that it would train plaintiffs team regarding the proper installation of TLD equipment. Id. On August 28, 2013, Panasonic provided plaintiff with a quotation offering to sell its TLD badges for $22 per unit. 3rd Am. Compl. ¶ 18; Pl.’s Ex. D.

B. Panasonic Changes Its “Go to Market Strategy”

As part of its plan to expand its international business operations, plaintiff contacted Panasonic on October 10, 2013, requesting a quotation for dosimetry equipment to be pro•vided to the government of Mexico. 3rd Am. Compl. ¶ 19; Pl.’s Ex. E. In response to plaintiffs request, RDC, not Panasonic, sent plaintiff a quotation offering to sell Panasonic-brand TLD badges for $35 per unit. 3rd Am. Compl. ¶ 19; Pl.’s Ex. E at 28-29. RDC is plaintiffs direct competitor. 3rd Am. Compl. ¶ 19. Realizing that it would no longer be able to purchase TLD badges at $22 per unit directly from Panasonic, but would instead be required to purchase the devices through RDC, thus incurring RDC’s $11 per unit mark-up charge, plaintiff complained to Panasonic that “RDC’s involvement was unlawful, unfair, and anticompetitive.” Id.; see also Pl.’s Ex. E at 23 (“Requiring us to purchase products through a competitor ( [RDC]) has effectively put us at a price disadvantage, both domestically and internationally.”). Panasonic’s representative, Sam Estanbouti, reiterated the company’s change in marketing strategy to Proxtronics by electronic-mail message dated October 29, 2013: “I have already informed you last time you *664 called that Panasonic cannot engage in price discussion on behalf of a 3rd party. Your quote was initiated by RDC; therefore, your special pricing request will have to be addressed directly with RDC.” Pl.’s Ex. E at 30.

Two months later, by letter dated January 1, 2014, Sam Piccarreta, Panasonic’s Vice President for Sales and New Business Development, explained to plaintiff that Panasonic had “changed its go to market strategy for its [TLD] product line and service network” and would “route most current and future customers through RDC.” Pl.’s Ex. F. He further explained that RDC would “be a Panasonic dealer for TLD badges [and would] be responsible for sales and support of existing Panasonic systems in the field.” Id. Then, in a letter dated January 2, 2014, Mr. Piccarreta reconfirmed his previous day’s advice:

I was recently advised that you had contacted Mr. Joseph Taylor, the Chairman and Chief Executive Officer of Panasonic Corporation of North America, regarding the possible direct purchase of Panasonic [TLD] products and services .... I am also aware that you have been communicating with a manager in my group, Sam[] Estanbouli, regarding the possible direct purchase of these products and services ....
Recently, [Panasonic] decided to stop making direct sales 1 of Panasonic TLD products and services to resellers and customers. Such sales are now being directed to [RDC]. If [Proxtronics] would like to purchase Panasonic TLD products and services, [it] must do so through RDC. The purchase price for such products and services [is] determined solely by RDC.

Pl.’s Ex. G.

Contemporaneous with its advice to plaintiff regarding its new sales distribution model, Panasonic informed the Air Force by letter dated January 1, 2014, that it would no longer sell its TLD product line directly to customers, such as the Air Force. Hasen Decl. ¶ 6. Panasonic provided the Air Force with the identical explanation it gave to plaintiff—-that going forward it would sell its TLD product line only through RDC, its authorized dealer. Id.; accord 3rd Am. Compl. ¶¶ 20-21; PL’s Ex. G.

C. The Air Force’s Fiscal Year 2014 Procurement of TLD Badges

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
128 Fed. Cl. 656, 2016 U.S. Claims LEXIS 1434, 2016 WL 5757156, Counsel Stack Legal Research, https://law.counselstack.com/opinion/proxtronics-dosimetry-llc-v-united-states-uscfc-2016.