Transatlantic Lines LLC v. United States

126 Fed. Cl. 756, 2016 U.S. Claims LEXIS 621, 2016 WL 2990953
CourtUnited States Court of Federal Claims
DecidedMay 19, 2016
Docket16-288 C
StatusPublished
Cited by5 cases

This text of 126 Fed. Cl. 756 (Transatlantic Lines 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
Transatlantic Lines LLC v. United States, 126 Fed. Cl. 756, 2016 U.S. Claims LEXIS 621, 2016 WL 2990953 (uscfc 2016).

Opinion

Bid Protest Jurisdiction, 28 U.S.C. § 1491; Cargo Preference Act of 1904 (“CPA”), 10 U.S.C. § 2631; Competition in Con- - tracting Act (“CICA”), 31 U.S.C. § 3663(c)(1); Contract Dispute Act (“CDA”), 41 U.S.C. § 7101 et seq.; Federal Acquisition Regulation (“FAR”), 48 C.F.R. § 6.302-2; Interested Party, 28 U.S.C..§ 1491(b)(1); Rules of the United States Court of Federal Claims (“RCFC”), RCFC 12(b)(1) (Jurisdiction).

MEMORANDUM OPINION AND FINAL ORDER CONCERNING THE GOVERNMENT’S MOTION TO DISMISS

BRADEN, Judge.

1. RELEVANT FACTUAL BACKGROUND. 1

In 2012, the United States Transportation Command (“USTRANSCOM”) awarded Urii-versal Service Contract-7 (“USC-7”), Solicitation No. HTC711-11-R-W004, to twenty-eight bidders, including TransAtlantie Lines LLC (“TransAtlantie”). Compl. ¶ 1; see also Gov’t Mot. at 2. USC-7 is a world-wide Indefinite Delivery/Indefinite Quantity (“IDIQ”) contract that “provides international cargo transportation and distribution services for Department of Defense ... cargo.” Gov’t Mot. at 2. The term of the USC-7' included one base year and two option years. Gov’t Mot. at 2\ Compl. Ex. 2 (USC-7). Because the USC-7 was scheduled to expire in 2016, USTRANSCOM decided to transfer services to the “next-generation” USC-8. Compl. Ex. 2 (USC-7); see also Gov’t Mot. at 2. Performance of the USC-8, however, was automatically stayed for 100 days, pursuant to 31 U.S.C. § 3663(c)(1), 2 because of the post-award bid protests filed by TransAtlantic at the Government Accountability Office (“GAO”). Gov’t Mot. at 2.

In light of the automatic stay, on February 22, 2016, USTRANSCOM decided to extend *758 the USC-7, through sole-source bridge contracts, for six months, with a five percent increase for USC-7 Option Year 2 earner rates. Compl. Ex. 3, at 2-3. That same day, TransAtlantic sent an email to USTRANS-COM to inquire whether TransAtlantic would be allowed to add inland trucking rates, ie., “late rates,” 3 on the West Azores route during the six-month extension period. Compl. Ex. 3, at 1. USTRANSCOM decided that TransAtlantic would not be able to add the inland trucking rate, because the Government was not “refreshing rates at this time.” Compl. Ex. 3, at 1.

On February 25, 2016, USTRANSCOM sent TransAtlantic a proposed bilateral extension to the USC-7. Compl. Ex. 1, at 3-5. The executed contract modifications were due by March 1, 2016. Gov’t Mot. Ex A; see also Compl Ex. 1.

On March 1, 2016, TransAtlantic signed a modification to the USC-7- and forwarded it to USTRANSCOM. Gov’t Mot. Ex. A.

II. PROCEDURAL HISTORY.

On March 1, 2016, TransAtlantic filed a Complaint For Declaratory And Permanent Injunctive Relief alleging that USTRANS-COM’s refusal to accept TransAtlantic’s proposed land rates was a violation of the Cargo Preference Act of 1904 4 (“CPA”) and arbitrary and capricious. That same day, TransAtlantic filed a Corporate Disclosure Statement Of Plaintiff Transatlantic Lines LLC, pursuant to Rule 7.1 of the Rules of the United States Court of Federal Claims (“RCFC”), and the court convened a telephone status conference.

On March 7, 2016, the Government filed a Motion To Dismiss, pursuant to RCFC 12(b)(1), for lack of subject-matter jurisdiction. On March 14, 2016, Plaintiff filed a Response. On March 17, 2016, the Government filed a Reply.

III. DISCUSSION.

A. Jurisdiction.

Pursuant to 28 U.S.C. § 1491(b)(1), the United States Court of Federal Claims has jurisdiction:

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 proposed procurement.

28 U.S.C. § 1491(b)(1).

As a threshold matter, the court must consider jurisdiction before reaching the substantive merits of a case. See Gonzalez v. Thaler, — U.S. -, 132 S.Ct. 641, 648, 181 L.Ed.2d 619 (2012) (“When a requirement goes to subject-matter jurisdiction, courts are obligated to consider sua sponte issues that the parties have disclaimed or have not presented.”). When considering a motion to dismiss for lack of subject-matter jurisdiction, the court must take the facts alleged in the complaint as true. See Erickson v. Pardus, 551 U.S. 89, 93-94, 127 S.Ct. 2197, 167 L.Ed.2d 1081 (2007). The court may consider evidence beyond the pleadings, however, when the motion to dismiss challenges the jurisdictional facts alleged in the complaint. See Moyer, 190 F.3d at 1318. If the court determines that it does not have subject-matter jurisdiction, the court must dismiss the complaint. See RCFC 12(h)(3); see also Smith v. United States, 495 Fed.Appx. 44, 47 (Fed.Cir.2012).

*759 B. Standing.

Under 28 U.S.C. § 1491(b)(1), “[t]he party invoking federal jurisdiction bears the burden of establishing the[] elements [of standing].” Lujan v. Defs. of Wildlife, 504 U.S. 555, 561, 112 S.Ct. 2130, 119 L.Ed.2d 351 (1992); see also Myers Investigative & Sec. Servs. v. United States, 275 F.3d 1366, 1369 (Fed.Cir.2002) (same).

The United States Court of Appeals for the Federal Circuit has construed the term “interested party,” under 28 U.S.C. § 1491(b)(1), as synonymous with “interested party” as it is used in 31 U.S.C. § 3551(2)(A). See Rex Serv. Corp. v. United States,

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126 Fed. Cl. 756, 2016 U.S. Claims LEXIS 621, 2016 WL 2990953, Counsel Stack Legal Research, https://law.counselstack.com/opinion/transatlantic-lines-llc-v-united-states-uscfc-2016.