R & W Flammann Gmbh v. United States

339 F.3d 1320, 2003 U.S. App. LEXIS 16171, 2003 WL 21804843
CourtCourt of Appeals for the Federal Circuit
DecidedAugust 7, 2003
Docket03-5014
StatusPublished
Cited by106 cases

This text of 339 F.3d 1320 (R & W Flammann Gmbh v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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R & W Flammann Gmbh v. United States, 339 F.3d 1320, 2003 U.S. App. LEXIS 16171, 2003 WL 21804843 (Fed. Cir. 2003).

Opinion

MAYER, Chief Judge.

The United States appeals the judgment of the United States Court of Federal Claims enjoining the Department of the Army from awarding a resolicited bid contract. R & W Flammann GmbH v. United States, 53 Fed.Cl. 647 (2002). Because the court erred as a matter of law, we reverse.

Background

In January 2001, the Army awarded Contract No. DAJA02-01-D-0007, the incumbent contract, to R & W Flammann GmbH (“Flammann”) to conduct between occupancy maintenance (“BOM”) services *1322 for housing units in Heidelberg, Germany. Awarded in accordance with the sealed bid procurement process, the incumbent contract called for Flammann to provide BOM services for one year, with four one-year options, beginning in February 2001. In October 2001, the Army chose not to exercise its option under the incumbent contract and resolicited bids for a substantially similar BOM services contract. Using the two-step sealed bidding process, in accordance with Federal Acquisition Regulation (“FAR”) subpart 14.5, the Army first issued a Request for Technical Proposal, No. DAJA02-02-R-7001, on October 5, 2001, followed by an Invitation For Bid (“IFB”), Solicitation No. DAJA02-02-B-0001, on July 2, 2002. In October and November 2001, SKE GmbH (“SKE”), a competing bidder for the resolicited contract, submitted Freedom of Information Act (“FOIA”) requests to the Army for Flammann’s incumbent contract cost schedule. The Army gave Flammann submitter notice of SKE’s FOIA requests and Flammann objected. Based partly on its determination that Flammann’s unit prices were in the public domain because the bid had already been publicly opened, the Army provided SKE, by Contract Line Item Number (“CLIN”), Flammann’s unit price information for the incumbent contract’s base year and unexercised option years.

Following the Army’s rejection of its pre-award bid protest, Flammann filed this suit on July 18, 2002, seeking injunctive relief and arguing, inter alia, that the Army’s disclosure of Flammann’s unit price information to SKE violated provisions of FOIA and the Trade Secrets Act. The parties cross-moved for summary judgment based on the administrative record. The trial court found that although Flammann’s unit prices were “generally subject to release under FOIA”, the Army did not act in accordance with law because the “peculiar facts at bar” created an appearance of impropriety. 53 Fed. Cl. at 654. It therefore enjoined the Army from awarding the resolicited contract, and required that all bidders receive copies of Flammann’s unit prices and that Flam-mann receive copies of its competitor’s bids. Id. at 657-58. The government appeals. We have jurisdiction under 28 U.S.C. § 1295(a)(3).

Discussion

We review the grant or denial of motions for summary judgment de novo, Impresa Construzioni Geom. Domenico Garufi v. United States, 238 F.3d 1324, 1330 (Fed.Cir.2001), independently examining the administrative record to determine whether any genuine issue[s] as to any material fact are present and whether the moving party is entitled to a judgment as a matter of law, Fed.R.Civ.P. 56(c). Because no genuine issues of material fact exist here, we review the trial courts decision as a matter of law.

Bid protest actions are subject to the standard of review established under section 706 of title 5 of the Administrative Procedure Act (APA), 28 U.S.C. § 1491(b)(4) (2000), by which an agencys decision is to be set aside if it is arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law, 5 U.S.C. § 706(2)(A) (2000). See Impresa, 238 F.3d at 1332. Contracting officers are given broad discretion in their evaluation of bids, E.W. Bliss Company v. United States, 77 F.3d 445, 449 (Fed.Cir.1996), and when an officers decision is reasonable a court may not substitute its judgment for that of the agency, Ray v. Lehman, 55 F.3d 606, 608 (Fed.Cir.1995).

The government argues that the release of Flammanns unit price information to SKE was not improper. Because Flam-manns CLIN information was already in the public domain as a result of the bid *1323 opening process, FOIA and FAR mandated its release.

Flammann responds that because its unit price information was confidential, the Army violated FOIA, 5 U.S.C. § 552 (2000), and the Trade Secrets Act, 18 U.S.C. § 1905 (2000). Specifically, Flammann asserts that its unit prices fall within Exemption 4 of FOIA, which protects from disclosure “trade secrets and commercial or financial information obtained from a person [that'is] privileged or confidential,” 5 U.S.C. § 552(b)(4) (2000). It further argues that the only applicable test for confidentiality is whether disclosure would be likely to “cause substantial harm to the competitive position of the person from whom the information was obtained.” Nat’l Parks & Conservation Ass’n v. Morton, 498 F.2d 765, 770 (D.C.Cir.1974).

FOIA’s broad policy is one of disclosure, as a “check against corruption and to hold the governors accountable to the governed,” NLRB v. Robbins Tire Rubber Company, 437 U.S. 214, 242, 98 S.Ct. 2311, 57 L.Ed.2d 159 (1978), and government agencies have a “general obligation ... to make information available to the public,” Chrysler Corporation v. Brown, 441 U.S. 281, 292, 99 S.Ct. 1705, 60 L.Ed.2d 208 (1979). Under FOIA, which is incorporated into FAR, 48 C.F.R. §§ 24.201-24.203 (2000), “[a] federal agency must disclose agency records unless they may be withheld pursuant to one of the nine enumerated exemptions listed in § 552(b),” United States Department of Justice v. Julian, 486 U.S. 1, 8, 108 S.Ct. 1606, 100 L.Ed.2d 1 (1988).

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339 F.3d 1320, 2003 U.S. App. LEXIS 16171, 2003 WL 21804843, Counsel Stack Legal Research, https://law.counselstack.com/opinion/r-w-flammann-gmbh-v-united-states-cafc-2003.