Resource Conservation Group, LLC v. United States

96 Fed. Cl. 457, 2011 U.S. Claims LEXIS 6, 2011 WL 108910
CourtUnited States Court of Federal Claims
DecidedJanuary 11, 2011
DocketNo. 08-768C
StatusPublished
Cited by2 cases

This text of 96 Fed. Cl. 457 (Resource Conservation Group, 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
Resource Conservation Group, LLC v. United States, 96 Fed. Cl. 457, 2011 U.S. Claims LEXIS 6, 2011 WL 108910 (uscfc 2011).

Opinion

MEMORANDUM OPINION AND FINAL ORDER

BRADEN, Judge.

[459]*459I. RELEVANT FACTS.1

In 1910, a typhoid fever epidemic swept through Annapolis, Maryland, affecting several United States Naval Academy (“Naval Academy”) midshipmen. See Michael Janof-sky, Midshipmen To Get Milk Through Middleman, N.Y. TIMES, July 19, 1998, Section 1, at 16. 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 (“the Dairy Farm Property”), fifteen miles from the Naval Academy. 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 less expensive to purchase milk commercially. Id.; see also Defense Authorization Act for Fiscal Year 1998, 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 Farm Property to Horizon Organic Holding Corp., a Boulder, Colorado-based milk producer. See Elizabeth Leis, What’s in Farm’s Future? Organic Maryland Stmrise Farm Wants to Stay, Md. GAZETTE, April 15, 2006, at Cl.

On November 28, 2005, the United States Department of the Navy (“the Navy”) issued a Request of Interest, No. LO-10019, to solicit proposals to lease the Dairy Farm Property. Compl. ¶ 5. On January 16, 2006, Resource Conservation Group, LLC (“Plaintiff’ or “RCG”) expressed an interest in leasing the Dairy Farm Property.2 Pl.Ex. 1. Thereafter, the Navy issued a Notice of Availability for Lease, No. N4008007RP00005 (“the Solicitation”), requesting all bids be submitted by March 19,2007. Gov’t Ex. at 1, 8.

On February 6, 2007, RCG and other interested bidders were invited to tour the Dairy Farm Property. Gov’t Ex. at 13, 15. On February 27, 2007, RCG again inspected the Dairy Farm Property “to survey and test the area for the presence of sand and gravel.” Compl. ¶ 6; see also Joshua Stewart, Soil Surveyed at Former Dairy, The Capital, Feb. 28, 2007, at B1 (local newspaper article discussing RCG’s site survey). Thereaftei’, RCG prepared a site analysis, produced mining plans, and submitted a formal lease proposal prior to the March 19, 2007 deadline. Compl. ¶ 6. The proposal stated that RCG planned to mine the Daily Farm Property for sand and gravel. Id.

On April 30, 2007, the Navy’s Contracting Officer for the Solicitation (“CO”) informed RCG that its proposed “activities and transactions ... do not fall within the scope of the [Sjolieitation because they constitute the disposal of real pi’opei’ty,” pi’ohibited by section 6976(a)(2)(A) of Title 10 of the United States Code. Pl.Ex. 2; see also 10 U.S.C. § 6976(a)(2)(A) (providing that “the real property containing the dairy farm ... may not be declared to be excess real property ... or othei’wise disposed of by the Navy”). In addition, federal regulations specify that “embedded sand and gi’avel constitute real pi’operty.”3 Pl.Ex. 2. Therefore, RCG’s proposal could not be considered. Id.

On June 4, 2007, Anne Arundel County, the county where Dairy Fai’m Propei’ty is [460]*460located, announced that the Navy had selected the county “for exclusive lease negotiations for the U[nited] S[tates] Naval Academy Dairy Farm.” Anne Arundel County website, accessible at http://www.aaeounty. org/News/Arehive2007/DairyFarmDeal.efm (last visited Jan. 7, 2011).

RCG requested a debriefing that was held on September 13, 2007. Compl. ¶ 9. At the debriefing, RCG reiterated the intention to “use the property for sand and gravel mining.” Id. The Navy responded that, because disposal of real property was prohibited by 10 U.S.C. § 6976, “the Navy was under no obligation to tell a proposed ‘bidder’ that its bid would not qualify for review or evaluation.” Compl. 119.

On January 17, 2008, the Navy and Anne Arundel County signed a “30-year lease agreement for the county’s use and preservation of the U.S. Naval Academy Dairy Farm.” Anne Arundel County website, accessible at http://www.aaeounty.org/Rec Parks/parks/dairyfarm/news/lease.cfim (last visited Jan. 7, 2011).

II. RELEVANT PROCEDURAL HISTORY.

A. Before The United States Court Of Federal Claims.

On October 24, 2008, RCG filed a Complaint in the United States Court of Federal Claims alleging two causes of action: breach of an implied contract of fair and honest consideration and violation of the Administrative Procedure Act (“APA”), 5 U.S.C. § 706. Compl. ¶¶ 14-20.

On March 31, 2009, the court issued a Memorandum Opinion And Final Order that dismissed the October 24, 2008 Complaint, pursuant to RCFC 12(b)(1). See RCG I, 86 Fed.Cl. at 480-87. As to the allegations in Count I regarding breach of an implied contract, the court held that the United States Court of Federal Claims did not have jurisdiction to adjudicate this claim under either section 1491(a)(1) or section 1491(b)(1) of Title 28 of the United States Code. Id. at 483-86. The court determined that the United States Court of Federal Claims’ jurisdiction to review bid protests as implied-in-fact contracts under section 1491(a)(1) did not survive the enactment of the Administrative Dispute Resolution Act of 1996 (“ADRA”), Pub.L. No. 104-320, § 12, 110 Stat. 3870, 3874-76 (1996). RCG I, 86 Fed.Cl. at 483-85. In addition, the court determined that “28 U.S.C. § 1491(b)(1) does not authorize the adjudication of bid protests concerning land leases where the Government is the lessor.” Id. at 486.

As to Count II of the October 24, 2008 Complaint, alleging a violation of the APA, the court determined that “the only forum that can adjudicate [RCG’s] challenge ... is a United States District Court.” Id. at 487. Since the court held that it did not have jurisdiction to adjudicate the claims alleged in the October 24, 2008 Complaint, the court did not address the Government’s Motion To Dismiss pursuant to RCFC 12(b)(6). Id.

B. Before The United States Court Of Appeals For The Federal Circuit.

On March 1, 2010, the United States Court of Appeals for the Federal Circuit issued an Opinion, affirming that the United States Court of Federal Claims does not have jurisdiction under 28 U.S.C. § 1491(b)(1) to adjudicate Count I of the October 24, 2008 Complaint. See Resource Conservation Group, LLC v. United States,

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96 Fed. Cl. 457, 2011 U.S. Claims LEXIS 6, 2011 WL 108910, Counsel Stack Legal Research, https://law.counselstack.com/opinion/resource-conservation-group-llc-v-united-states-uscfc-2011.