Unisys Corp. v. United States

90 Fed. Cl. 510, 2009 U.S. Claims LEXIS 681, 2009 WL 5098195
United States Court of Federal Claims·Decided December 18, 2009·No. No. 09-800C·Published·Cited by 10 cases

Opinion

OPINION AND ORDER

GEORGE W. MILLER, Judge.

This unusual case involves Congress’s recent decision to limit the jurisdiction of a parallel system for protesting certain government procurements, and expand the existing process at the Government Accountability Office (“GAO”). The protestor asserts that the procurement at issue is within the jurisdiction of GAO and that the procuring agency, the Transportation Security Administration (“TSA”) must either stay performance of the contract until the conclusion of the protest in accord with 31 U.S.C. § 3553 or follow the statutory procedure for overriding that automatic stay. The Government contends that this solicitation remains under the for[512]*512mer, parallel system, and that the automatic stay provision of § 3553 is inapplicable. The Court concludes that whether or not the procurement was conducted under the former system, the automatic stay provision is applicable, and TSA is therefore required to stay performance of the contract at issue until GAO resolves the protest or TSA seeks to override the stay. The Intervenor’s Motion for Declaratory Judgment and the Defendant’s Motion to Dismiss are therefore DENIED, and the Plaintiffs Motion for Declaratory Judgment is GRANTED.

I. Background

A. Statutory and Regulatory History

GAO (sometimes referred to by the title of its director, i.e., the Comptroller General) has exercised informal authority to adjudicate bid protests essentially since its formation as the Government Accounting Office in 1921. Letter from Comptroller General McCarl to the Postmaster General, Acceptance of Other than the Lowest Bid, A-11757, 5 Comp. Gen. 330, 331 (Nov. 5, 1925). This authority became formal with the passage of the Competition in Contracting Act of 1984, Pub.L. No. 98-369, 98 Stat. 1175 (1984) (codified in scattered sections of 31 U.S.C. and 41 U.S.C.) (“CICA”).

In 1996, however, Congress decided to require the Federal Aviation Administration (“FAA”) to develop its own unique acquisition system, ultimately called the Acquisition Management System (“AMS”). Department of Transportation Appropriations Act of 1996, Pub.L. No. 104-50, § 348, 109 Stat. 436, 460 (1995) (codified as amended in scattered sections of 49 U.S.C.). This act exempted the AMS from “all federal acquisition laws and regulations,” including CICA, and GAO thus no longer possessed jurisdiction to resolve disputes arising out of FAA procurements. Id. The FAA created an Office of Dispute Resolution for Acquisition (“ODRA”) with exclusive jurisdiction over FAA bid protests. See, e.g., Pub.L. No. 108-176, § 224(b), 117 Stat. 2490, 2528 (codified as amended at 49 U.S.C. § 40110(d)(4)); Attachment 1 to Defendant’s Motion to Dismiss and Opposition to Plaintiffs Motion for Declaratory Judgment (docket entry 15, Dec. 4, 2009) (“Def.’s Mot.”) (memorandum of Sept. 16, 2002 delegating authority to ODRA); Attachment 2 to Def.’s Mot. (memorandum last signed in 2004 delegating authority to ODRA). As of 1996, therefore, there were, as is pertinent here, two separate administrative fora for bid protests, depending upon whether the FAA was the procuring agency.

In November 2001, Congress created the TSA to improve aviation security in the wake of the terrorist attacks that September. Aviation and Transportation Security Act, Pub.L. No. 107-71, 115 Stat. 597 (2001) (“ATSA”). Congress directed TSA to utilize the AMS, as established by the FAA, for its acquisitions of “equipment, supplies, and materials.” Id. § 101(n), 115 Stat. at 600. Although in 2002 the TSA was placed under the control of the new Department of Homeland Security (“DHS”), the 2002 Homeland Security Act did not alter the handling of TSA procurements through the AMS rather than generally applicable laws and regulations. Homeland Security Act of 2002, Pub.L. No. 107-296, § 424, 116 Stat. 2135, 2185 (2002). In 2005, Congress included “services” among the items TSA was required to procure through the AMS. Department of Homeland Security Appropriations Act of 2006, Pub.L. 109-90, 119 Stat.2064, 2070 (2005). Because DHS is subject to those generally applicable laws and regulations, including the Federal Acquisition Regulation (“FAR”) and the jurisdiction of GAO, TSA’s use of the AMS created some problems.

In part to place all DHS entities on the same system and thus improve efficiency in contracting, in 2007 Congress repealed the statutory provision placing TSA procurements under the AMS.1 Consolidated Appro[513]*513priations Act of 2008, Pub.L. No. 110-161, § 568, 121 Stat. 1844 (2007). The change in jurisdiction was to take place “180 days after the date of enactment of this Act” — that is, on June 23, 2008. Id. § 528(b). In response to this new law, DHS promulgated a regulation stating that “TSA acquisitions initiated after June 22, 2008” would be subject to the FAR. 73 Fed.Reg. 30,317 (May 27, 2008) (codified at 48 C.F.R. § 3001.104(b)). GAO issued a final rule stating that it would “hear protests of TSA procurements covered by TSA solicitations issued on or after June 23, 2008.” 73 Fed.Reg. 32,427, 32,429 (June 9, 2008). These are two slightly differing statements of when the new regime begins: when an “acquisition” is “initiated” versus when a “solicitation” is “issued.”

B. History of this Procurement

The procurement at issue here involves Information Technology Infrastructure Program (“ITIP”) services, which allow DHS to process and transfer voice, video, and digital communications over computers, telephones, facsimile machines, and copiers, among other things. Def.’s Mot. at 4. To obtain these services, in June 2006 DHS required all of its component agencies to utilize a broad indefinite delivery/indefinite quantity (“IDIQ”) contract called the Enterprise Acquisition Gateway for Leading Edge Solutions (“EAGLE”) contract. Attachment 4 to Def.’s Mot. Unisys was one of the EAGLE awar-dees. Attachment 7 to Def.’s Mot. at 8. All of the EAGLE awardees would then compete for individual task orders to perform specific work for entities within DHS.

On April 17, 2008, TSA issued a “Request for Multi-Phased Proposal,” asking the EAGLE awardees to submit proposals for providing ITIP services to TSA. Attachment 6 to Def.’s Mot. (“Phase 1 RFP”). The Request for Task Order Proposal stated that “[ojffer- or selection for Phase 1 of this DHS requirement ... will be made using a multi-phased process under the EAGLE contract.” Id. at 1. TSA would receive and evaluate proposals, and then “there will be a down select conducted prior to continuing on to the second part of this competition, which will involve the issuance of a Request for Techncial, Management, and Cost Proposal.” Id.; see also id. at 3 (“This request for a Phase 1 proposal is the first in a two-part process to assess your capabilities in performing the work described in the Statement of Work (SOW). There will be a down-select prior to continuing onto the second part of this competition, which will involve the issuance of a full Request for Technical, Management, and Cost Proposal (Phase 2).”). Responses to the Phase 1 RFP were due by May 14, 2008. Id. at 3.

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Unisys Corp. v. United States, 90 Fed. Cl. 510, 2009 U.S. Claims LEXIS 681, 2009 WL 5098195 (uscfc 2009).

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