Ptc, Inc. v. United States

CourtUnited States Court of Federal Claims
DecidedJuly 10, 2019
Docket19-165
StatusPublished

This text of Ptc, Inc. v. United States (Ptc, 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
Ptc, Inc. v. United States, (uscfc 2019).

Opinion

In the United States Court of Federal Claims BID PROTEST No. 19-165C Filed Under Seal: June 27, 2019 Reissued For Publication: July 10, 2019*

) PTC, INC., ) ) Plaintiff, ) ) Post-Award Bid Protest; Judgment Upon v. ) The Administrative Record; RCFC 52.1; ) Injunctive Relief; RCFC 65; Standing; THE UNITED STATES, ) Subject-Matter Jurisdiction; Motion To ) Dismiss; RCFC 12(b)(1). Defendant, ) ) v. ) ) SIEMENS GOVERNMENT ) TECHNOLOGIES, INC., ) ) Defendant-Intervenor. ) )

Andrew E. Shipley, Counsel of Record, Philip E. Beshara, Of Counsel, Wilmer Cutler Pickering Hale and Dorr LLP, Washington, DC, for plaintiff.

Mollie L. Finnan, Trial Counsel, Patricia M. McCarthy, Assistant Director, Robert E. Kirschman, Jr., Director, Joseph H. Hunt, Assistant Attorney General, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washington, DC; Heather M. Mandelkehr, Of Counsel, United States Air Force, for defendant.

Jeffery M. Chiow, Counsel of Record, Robert S. Metzger, Of Counsel, Dennis J. Callahan, Of Counsel, Deborah N. Rodin, Of Counsel, Rogers Joseph O’Donnell, Washington, DC, for defendant-intervenor.

* This Memorandum Opinion and Order was originally filed under seal on June 27, 2019 (docket entry no. 60). The parties were given an opportunity to advise the Court of their views with respect to what information, if any, should be redacted from the Memorandum Opinion and Order. The parties filed a joint status report on July 9, 2019 (docket entry no. 62) proposing certain agreed-upon redactions and stating their respective views on certain other redactions. And so, the Court is reissuing its Memorandum Opinion and Order, dated June 27, 2019, with the adopted redactions indicated by three consecutive asterisks within brackets ([***]). MEMORANDUM OPINION AND ORDER GRIGGSBY, Judge

I. INTRODUCTION

Plaintiff, PTC, Inc. (“PTC”), brought this post-award bid protest matter challenging the decision of the United States Air Force (“Air Force”) to award a sole-source contract for standardizing the Air Force’s existing inventory of product lifecycle management software licenses, and continuing maintenance and related support, to Siemens Government Technologies, Inc. (“Siemens”).

The government and Siemens have moved to dismiss this matter for lack of subject- matter jurisdiction, pursuant to Rule 12(b)(1) of the Rules of the United States Court of Federal Claims (“RCFC”). See generally Def. Mot.; Def.-Int. Mot. In addition, the parties have filed cross-motions for judgment upon the administrative record, pursuant to RCFC 52.1. See generally Pl. Mot.; Def. Mot.; Def.-Int. Mot.

The government has also moved to strike the Declaration of [***] and a CIMdata report attached to PTC’s motion for judgment upon the administrative record. See generally Def. Mot. to Strike; Pl. Mot. PTC has also moved to strike the Declaration of Andrew P. McMullen attached to the government’s cross-motion for judgment upon the administrative record. See generally Pl. Mot. to Strike; Def. Mot.

In addition, PTC has moved for a temporary restraining order and for a preliminary injunction, pursuant to RCFC 65. See generally Pl. Mot. for TRO/PI. Lastly, PTC has filed an unopposed motion to amend its motion for judgment upon the administrative record and reply brief to correct certain citations. See generally Pl. Mot. to Am. Br.

For the reasons discussed below, the Court: (1) GRANTS-IN-PART and DENIES-IN- PART the government’s motion to strike; (2) DENIES PTC’s motion to strike; (3) GRANTS the government’s motion to dismiss this matter for lack of subject-matter jurisdiction; (4) DENIES as moot Siemens’ motion to dismiss this matter for lack of subject-matter jurisdiction and the parties’ cross-motions for judgment upon the administrative record; (5) DENIES PTC’s motions for a temporary restraining order and for a preliminary injunction; (6) GRANTS PTC’s

2 unopposed motion to amend its motion for judgment upon the administrative record and reply brief; and (7) DISMISSES the complaint.

II. FACTUAL AND PROCEDURAL BACKGROUND1

A. Factual Background

1. The Product Lifecycle Management Program

The Air Force’s Product Lifecycle Management (“PLM”) program is the agency’s strategic business initiative to standardize its management of product data using modern PLM software. AR § 1 at 328–32. PLM software enables both engineering and logistics communities to manage the entire lifecycle of a product from its conception through design, manufacture, service, and disposal. Id. PLM also enables users to weigh the cost, performance, and risk of original products against alternatives. See Def. Mot. at 2; see also AR § 1 at 374–78. And so, PLM has made the Air Force’s weapon system programs more effective and adaptive to real world demands. AR § 1 at 328–29, 331–32.

The Air Force’s commitment to PLM began nearly 20 years ago with the agency’s acquisition of what was known then as Product Data Management (“PDM”) software. Id. at 294. Tinker Air Force Base acquired Siemens’ PDM software products in 2000, in connection with its Integrated Data Information Manager (“IDIM”) program. Id.; see also AR § 6 at 6573–87, 6593–96, 6607–10 (discussing Air Force’s PLM acquisition history). In 2003, Wright-Patterson Air Force Base expanded the Air Force’s acquisition of PDM software through a competitive contract issued to Intergraph Corporation for the Enhanced Technical Information Management System (“ETIMS”). See AR § 1 at 294–95, 453–66, 785–801, 804–28. The ETIMS contract included contract line item numbers (“CLINs”) for Siemens’ Teamcenter perpetual licenses. AR § 2 at 1041. Siemens’ predecessor, UGS Corporation, was a subcontractor on the IDIM contract. AR § 6 at 6572.

1 The facts recited in this Memorandum Opinion and Order are taken from PTC’s complaint (“Compl.”); the administrative record (“AR”); PTC’s motion for judgment upon the administrative record (“Pl. Mot.”); and the government’s motion to dismiss and cross-motion for judgment upon the administrative record (“Def. Mot.”). Except where otherwise noted, the facts recited here are undisputed.

3 In November 2004, the Air Force adopted an initiative to standardize its PDM solution across the agency. AR § 2 at 1060–62. Notably, the Air Force determined that the most effective way to accomplish this initiative was to leverage the agency’s existing investment in Teamcenter software within the ETIMS contract. Id. at 1060. And so, in 2006, the Air Force awarded a competitive contract to Lockheed Martin Corporation, in which Teamcenter licenses were designated the PDM solution for the agency’s Expeditionary Combat Support System (“ECSS”) footprint. See AR § 1 at 501–08.

Through CLINs for Teamcenter software, the Air Force acquired thousands of Teamcenter perpetual software licenses. Id. at 494–97; see also, e.g., AR § 2 at 1085, 1098– 1100. The Air Force presently owns more than 59,375 Teamcenter perpetual software licenses, purchased primarily through the ETIMS and ECSS contracts. AR § 1 at 579, 594. Thousands of these licenses are active and in use today, while others are inactive. Id. at 295.

2. The Air Force’s Market Research

In 2014, the Air Force explored the then-current state of commercially available PLM capabilities. See id. at 391–417. A July 2014 Air Force market research report compiled and analyzed market research from diverse sources and included responses to a public request for information and targeted market surveys from PTC and Siemens. Id. at 408–12; see also AR § 2 at 1437–46, 1457–66. As a result of the market research, the Air Force determined that both PTC and Siemens appeared to be technically qualified providers of commercial-off-the-shelf PLM solutions.

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