Spherix, Inc. v. United States

58 Fed. Cl. 514, 2003 U.S. Claims LEXIS 334, 2003 WL 22827364
United States Court of Federal Claims·Decided November 17, 2003·No. No. 03-2371C·Published·Cited by 2 cases

Opinion

OPINION

FUTEY, Judge.

This case comes before the court on Plaintiffs Motion For A Prehminary Injunction and defendant’s and intervenor’s responses. Prior to addressing the merits of the motion, the court ordered briefs to be filed on the subject of jurisdiction. Oral argument on those briefs was held on October 29, 2003. On November 3, 2003, the court issued an Opinion and Order holding that it possessed jurisdiction to review the United States Secretary of Agriculture’s (Secretary) determination that it was in the public interest to award a sole source contract modification related to the National Recreation Reservation Service (NRRS).

Plaintiff, Spherix, Inc., asserts that it meets all criteria for the issuance of a prehm-inary injunction. In particular, plaintiff argues that it is likely to succeed on the merits of its case, will suffer irreparable harm unless an injunction is ordered, and that the risk of harm to plaintiff outweighs the hardships to the public or defendant. Defendant [515]*515and intervenor, ReserveAmerica Holdings, Inc., counter, inter alia, that plaintiff is unlikely to prevail on the merits of the case and, therefore, an injunction is unwarranted.

Factual Background

The background facts of this case are detailed in the court’s November 3, 2003, Opinion and Order.1 In its opinion, the court held that it “has jurisdiction to decide whether the Secretary of Agriculture’s determination that it is necessary in the public interest to make a sole source modification to intervenor’s contract is clearly and convincingly justified, as required by 48 C.F.R. § 6.302-7, notwithstanding the discretion provided by 41 U.S.C. § 253(c)(7)(A).”2 Defendant subsequently filed the Administrative Record and defendant and intervenor responded to plaintiffs motion for preliminary injunction. Among other arguments, those responses include briefing, as directed by the court, on “whether, based on the administrative record, the Secretary’s determination of the public interest is clearly and convincingly justified.”3

Discussion

The court begins with the arguments on whether the Secretary’s determination that the sole source modification was in the public interest. When such a determination is clearly and convincingly justified, pursuant to 48 C.F.R. § 6.302-7, the Secretary has properly invoked her authority under 41 U.S.C. § 253(c)(7) to make the sole source award. In making a valid determination of the public interest, the decision to award the contract modification is placed outside further review of the court and, therefore, plaintiff would necessarily fail to meet the burden of showing that it is likely to prevail on the merits.

Title 48 C.F.R. § 6.302-7 requires the head of an agency to make a determination and findings (D & F) pursuant to 48 C.F.R. § 1.7. Section 1.7 in turn establishes seven criteria or elements of said determination:

1.704 Content
Each D & F shall set forth enough facts and circumstances to clearly and convincingly justify the specific determination made. As a minimum, each D & F shall include, in the prescribed agency format, the following information:
(a) Identification of the agency and of the contracting activity and specific identifications of the document as Determination and Findings.
(b) Nature and/or description of the action being approved.
(c) Citation of the appropriate statute and/or regulation upon which the D & F is based.
(d) Findings that detail the particular circumstances, facts, or reasoning essential to support the determination. Necessary supporting documentation shall be obtained from appropriate requirements and technical personnel.
(e) A determination, based on the findings, that the proposed action is justified under the applicable statute or regulation.
(f) Expiration date of the D & F, if required (see 1.706(b)).
(g) The signature of the official authorized to sign the D & F (see 1.706) and the date signed.

48 C.F.R. § 1.704.

In form, all of these requirements are met by the D & F attached to the Secretary’s written determination.4 Plaintiff contends, however, that despite complying with the formal requirements, the “circumstances, facts, or reasoning” proffered by the Secretary fail to provide clear and convincing support for her determination. Plaintiff asserts that the “ ‘defense’ of the determination ... [does] little more than merely parrot the unsupported conclusions and assumptions contained in the [§ 253(c)(7)] waiver.”5

[516]*516All parties agree that “the underlying goal or public interest allegedly advanced by the agency’s non-competitive award to [interve-nor] was the creation of a ‘One-Stop Recreation Reservation System.’ ”6 The concern of the court, therefore, is whether the D & F adopted by the Secretary clearly and convincingly justify her determination that a sole source modification to intervenor’s contract advanced that underlying public interest.

Plaintiff asserts that “the non-competitive award does nothing to further the general goal of establishing a single source system.”7 In support of its belief, plaintiff quotes defendant’s assertion that “currently there are two reservation systems in place; with the addition of the 17 facilities to the NRRS contract with [intervenor], the same two systems would remain in place.”8 Plaintiff argues, therefore, that consolidating more National Park Service (NPS) sites into the NRRS does nothing to advance the goal of creating a “one-stop” recreational reservation Web site. Accordingly, plaintiff argues that the decision to award the sole source modification is not only without clear and convincing justification, but lacks even a rational basis.

While arguing that the present modification does nothing to advance the goal of a single source system, plaintiff ignores the fact that the NRRS has already been designated as the ultimate “one-stop” system. A letter dated December 12, 2003, addressed to selected heads of departments and agencies by the United States Office of Management and Budget Director Mitchell E. Daniels, Jr., precipitated the Secretary’s action in this case. The letter stated that:

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Spherix, Inc. v. United States, 58 Fed. Cl. 514, 2003 U.S. Claims LEXIS 334, 2003 WL 22827364 (uscfc 2003).

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