Resource Conservation Group, LLC v. United States Deparment of Navy

86 Fed. Cl. 475, 2009 U.S. Claims LEXIS 82, 2009 WL 877717
CourtUnited States Court of Federal Claims
DecidedMarch 31, 2009
DocketNo. 08-768C
StatusPublished
Cited by4 cases

This text of 86 Fed. Cl. 475 (Resource Conservation Group, LLC v. United States Deparment of Navy) 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
Resource Conservation Group, LLC v. United States Deparment of Navy, 86 Fed. Cl. 475, 2009 U.S. Claims LEXIS 82, 2009 WL 877717 (uscfc 2009).

Opinion

MEMORANDUM OPINION AND FINAL ORDER

BRADEN, Judge.

I. RELEVANT FACTUAL BACKGROUND.1

In 1910, a typhoid fever epidemic swept through Annapolis, Maryland, affecting several United States Naval Academy (“Naval Academy”) midshipmen. See Michael Janofsky, Midshipmen To Get Milk Through Middleman, N.Y. TIMES, July 19, 1998. The epidemic was traced to a local milk distributor. Id. In response, the United States Congress authorized the Naval Academy to establish and operate a dairy. Id. In 1913, the Naval Academy purchased land in Gambrills, Maryland, fifteen miles from the Naval Academy in Annapolis, Maryland, for this purpose. Id. Over time, the Naval Academy dairy operation expanded, and consumption reached almost 1,000 gallons of milk per day. Id.

In the 1990’s, the Naval Academy determined that it would be cheaper to purchase milk commercially. Id. Consequently, Congress included a provision in the Defense Authorization Act for Fiscal Year 1998 that authorized closure of the dairy operations. Id.; see also 10 U.S.C. § 6976(a) (codifying the Naval Academy’s authority to “terminate or reduce the dairy or other operations conducted at the Naval Academy dairy farm located in Gambrills, Maryland[,]” so long as its “rural and agricultural nature” is maintained). From 2000 to January 2005, the Naval Academy leased the dairy to Horizon Organic Holding Corp., a Boulder, Colorado-based milk producer. See International Dairy Food’s Association’s website, available at http://www.idfa.org/dbrief/dbrief012804. html (last visited March 30, 2009).

On November 28, 2005, the Navy issued a Request of Interest, No. LO-10019, to solicit proposals to lease the property where the dairy was located. See Compl. ¶ 5. On January 16, 2006, Resource Conservation Group, LLC (“Plaintiff’) expressed interest in leasing the property.2 See Pl.Ex. 1. Thereafter, the Navy issued a Notice of Availability for Lease, No. N4008007RP00005, and requested that all bids be submitted by March 19, 2007. See Compl. ¶ 10.

On February 6, 2007, interested bidders toured the property, as Section 6.1 of the Request for Proposals permitted. See Gov’t Mot. at 3; Gov’t Ex. at 13, 15. With the Navy’s permission, Plaintiff entered the property a second time “to survey and test the area for the presence of sand and gravel.” Compl. ¶ 6. Plaintiff then prepared a site analysis, produced mining plans, and submitted a formal lease proposal prior to the March 19, 2007 deadline. Id.

On April 30, 2007, the Navy Contracting Officer informed Plaintiff that its proposal did not “fall within the scope of the [November 28, 2005] solicitation,” because disposal of real property was prohibited. See Pl.Ex. 2; see also Compl. ¶8. Accordingly, Plaintiffs proposal would not be considered. See Compl. ¶ 8.

[478]*478Plaintiff requested a debriefing, and the parties met on September 13, 2007. Id. ¶ 9. At the debriefing, Plaintiff reiterated an intention to “use the property for sand and gravel mining.” Id. The Navy responded that “disposal” of real property was prohibited by 10 U.S.C. § 6976 and that the Navy was under no obligation to inform a “bidder” that the proposed use did not qualify for review or evaluation. Id.

II. PROCEDURAL HISTORY.

On October 24, 2008, Plaintiff filed a Complaint in the United States Court of Federal Claims, alleging breach of an implied contract of fair and honest consideration and violation of the Administrative Procedure Act, 5 U.S.C. § 706 (“APA”). See Compl. ¶¶ 14-20. The Complaint requests recovery of bid preparation costs and fees in the amount of $500,000. Id.

On December 23, 2008, the Government filed a Motion To Dismiss Plaintiffs Complaint. On January 23, 2009, Plaintiff filed an Opposition (“Pl.Opp.”), together with an Exhibit (“Pl.Opp.Ex.”), and requested oral argument. On January 29, 2009, the Government filed an Unopposed Motion For Enlargement Of Time to file a Reply, that the court granted. On February 13, 2009, the Government filed a Reply (“Gov’t Reply”).

On March 12, 2009, the court convened an oral argument. See 3/12/09 TR 1-27.

II. DISCUSSION.

A. Jurisdiction.

The jurisdiction of the United States Court of Federal Claims is established by the Tucker Act. See 28 U.S.C. § 1491. This Act authorizes the court “to render judgment upon any claim against the United States founded either upon the Constitution, or any Act of Congress or any regulation of an executive department, or upon any express or implied contract with the United States, or for liquidated or unliquidated damages in eases not sounding in tort.” Id. § 1491(a)(1). The Tucker Act, however, is “a jurisdictional statute; it does not create any substantive right enforceable against the United States for money damages.... [T]he Act merely confers jurisdiction upon it whenever the substantive right exists.” See United States v. Testan, 424 U.S. 392, 398, 96 S.Ct. 948, 47 L.Ed.2d 114 (1976). Therefore, a plaintiff must identify and plead an independent contractual relationship, constitutional provision, federal statute, or executive agency regulation that provides a substantive right to money damages. See Fisher v. United States, 402 F.3d 1167, 1172 (Fed.Cir.2005) (en banc) (“The Tucker Act itself does not create a substantive cause of action; in order to come within the jurisdictional reach and the waiver of the Tucker Act, a plaintiff must identify a separate source of substantive law that creates the right to money damages.”). The burden of establishing jurisdiction falls upon the plaintiff. See FW/PBS, Inc. v. Dallas, 493 U.S. 215, 231, 110 S.Ct. 596, 107 L.Ed.2d 603 (1990) (holding that the burden is on the plaintiff to allege facts sufficient to establish jurisdiction); see also RCFC 12(b)(1).

The Tucker Act, as amended by the Administrative Dispute Resolution Act of 1996 (“ADRA”), Pub.L. No. 104-320, §§ 12(a), (b), 110 Stat. 3870 (1996), codified at 28 U.S.C. § 1491(b), also authorizes the United States Court of Federal Claims to “render judgment on an action by an interested party objecting to a solicitation by a federal agency for bids or proposals for a proposed contract or to a proposed award or the award of a contract or any alleged violation of statute or regulation in connection with a procurement or a proposed procurement.” 28 U.S.C. § 1491(b)(1); see also Banknote Corp. of Am., Inc. v. United States,

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Bluebook (online)
86 Fed. Cl. 475, 2009 U.S. Claims LEXIS 82, 2009 WL 877717, Counsel Stack Legal Research, https://law.counselstack.com/opinion/resource-conservation-group-llc-v-united-states-deparment-of-navy-uscfc-2009.