Validata Chemical Services v. United States Department of Energy

169 F. Supp. 3d 69, 2016 U.S. Dist. LEXIS 31481, 2016 WL 1048823
CourtDistrict Court, District of Columbia
DecidedMarch 11, 2016
DocketCivil Action No. 2013-1882
StatusPublished
Cited by16 cases

This text of 169 F. Supp. 3d 69 (Validata Chemical Services v. United States Department of Energy) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Validata Chemical Services v. United States Department of Energy, 169 F. Supp. 3d 69, 2016 U.S. Dist. LEXIS 31481, 2016 WL 1048823 (D.D.C. 2016).

Opinion

MEMORANDUM OPINION AND ORDER

RANDOLPH D. MOSS, United States District Judge

In 2011, Defendant Department of Energy (“DOE”) awarded a contract for environmental remediation services to URS %CO CH2M Oak Ridge, LLC (“UCOR”). In 2012, Plaintiff Validata Chemical Services (“Validata”) bid on, but did not win, a small business set-aside subcontract for data validation services to support UCOR’s remediation work. Validata then sought to contest the award of the subcontract to its competitor, Portage, Inc., arguing that Portage did not meet the applicable size standard for the small business set-aside subcontract. Validata objected on numerous grounds. It argued that DOE had improperly approved the subcontract award, despite its knowledge that Portage did not meet the applicable requirements, and had improperly made its own size determination, rather than leaving that question to the Small Business Administration (“SBA”). Validata also complained that the subcontract solicitation did not contain a North American Industry Classification System (“NAICS”) code; that the code that UCOR actually used was incorrect; and that had UCOR used the correct code, Portage would not have qualified. After unsuccessfully raising these issues in whole or in part with UCOR and the SBA’s Office of Hearings and Appeals (“SBA-OHA”), Validata brought this suit against DOE and the SBA, asserting claims under the Administrative Procedure Act 1 (“APA”) and the Fifth Amendment Due Process Clause. Dkt. 6 at 12-14 (Amend. Compl. ¶¶ 81-39).

*71 Before considering the merits of Valida-ta’s claims, the Court must consider whether it has jurisdiction to do so. The answer to that question turns on the meaning of the Administrative Dispute Resolution Act of 1996 (“ADRA”), Pub. L. No. 104-320,110 Stat. 3870, which is codified at 28 U.S.C. § 1491(b). Although at one time ADRA provided concurrent jurisdiction over certain procurement-related disputes in the federal district courts and the U.S. Court of Federal Claims, its grant of jurisdiction to the federal district courts expired in 2001. Accordingly, as the law now stands, the Court of Federal Claims has exclusive jurisdiction over:

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).

Validata contends that because a subcontractor is not an “interested party” as that term has been construed by the Federal Circuit and the Court of Federal Claims, § 1491(b)(1) does not oust this Court of jurisdiction to adjudicate its claims. Dkt. 26-1. The government initially disagreed, arguing that the Court of Federal Claims had exclusive jurisdiction over this matter. On further reflection, however, it has come to the view that Validata is right and that § 1491(b)(1) does not apply. As explained below, notwithstanding the parties’ agreement on the matter, the Court concludes that it lacks jurisdiction' over Validata’s claims. In the interest of justice, the Court will therefore transfer the case to the Court of Federal Claims, where the action could have been brought at the time it was filed. See 28 U.S.C. § 1631.

I. BACKGROUND

The following facts, derived from the amended complaint and declarations submitted by the parties, are taken as true solely for purposes of determining whether the Court has jurisdiction over this matter. See, e.g., Am. Nat’l Ins. Co. v. FDIC, 642 F.3d 1137, 1139 (D.C.Cir.2011) (“We assume the truth of all material factual allegations ... and upon such facts determine jurisdictional questions.”); see also Fed. R. Civ. P. 12(b)(1).

A. The Subcontract Procurement

On April 28, 2011, DOE awarded UCOR a contract to provide environmental remediation services at the East Tennessee Technology Park in Oak Ridge, Tennessee, until July 2020. Dkt. 6 at 8 (Amend. Compl. ¶ 14); Dkt. 22-1 at 4 (Cloar Deck ¶ 4). In 2012, UCOR conducted a solicitation for a subcontractor to provide analytical data validation services in support of this prime contract. Dkt. 6 at 2 (Amend. Compl. ¶¶ 1-2); Dkt. 12-2 at 94. Although there is no dispute that the subcontract was set aside for a prequalified small business, Dkt. 12-2 at 1, the parties do not address whether the set-aside was made pursuant to provisions of the prime contract, federal law, or both. The prime contract does not appear in the present record, but 15 U.S.C. § 637(d) requires that “all contracts let by any Federal agency,” with certain exceptions not relevant here, include a clause stating that “[i]t is the policy of the United States that small business concerns ... have the maximum practicable opportunity to participate in the performance of contracts let by any Federal agency, including ... subcontracts,” and that “[t]he contractor hereby agrees to carry out this policy in the awarding of subcontracts.”

*72 According to a declaration submitted by Heather Cloar, the DOE contracting officer for the prime contract, she authorized “UCOR to enter into competitive firm-fixed-price subcontracts with dollar values of up to $5,000,000 and cost-type subcontracts with dollar values of up to $2,000,000 without seeking” further consent. Dkt. 22-1 at 1-2 (Cloar Decl. ¶¶ 1-2). As she further explains, as a result, UCOR “was not required to submit its prequalification criteria, its solicitation, or its award documentation to DOE for consent and it did not submit [them] to [her] or anyone in DOE.” Id. at 2 (Cloar Decl. ¶ 3). UCOR’s “purchasing system,” including its system for subcontracting, was, however, subject to periodic review and approval. Id. at 1-2 (Cloar Decl. ¶ 1).

Validata competed for, but did not win, the subcontract. Dkt. 6 at 2 (Amend. Compl. ¶ 1). On September 18, 2012, UCOR notified Validata that Portage had won it. Id. at 9 (Amend. Compl. ¶ 18). Validata then attempted to challenge the award to Portage. First, Validata expressed concern to UCOR Subcontract Administrator Cindy Hart that Portage was not a small business. Dkt. 12-2 at 101-105. Hart replied that UCOR no longer accepted or allowed size protests, but that she would check whether anything could be done. Id. at 105. On October 2, Hart informed Validata that, based on offeror-submitted information “gathered through the [Central Contractor Registration (System for Award Management) ] CCR(SAM)” and after consulting with UCOR Small Business Program Manager Karen Reeve, UCOR believed that Portage was a small business with fewer than 500 employees. Id.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
169 F. Supp. 3d 69, 2016 U.S. Dist. LEXIS 31481, 2016 WL 1048823, Counsel Stack Legal Research, https://law.counselstack.com/opinion/validata-chemical-services-v-united-states-department-of-energy-dcd-2016.