Justia Government & Administrative Law Opinion Summaries

Articles Posted in Government Contracts
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The Defense Contract Management Agency within the Department of Defense (DOD) employed Vassallo as a computer engineer in 2012. That summer, it announced a vacancy for the position of Lead Interdisciplinary Engineer, stating that only certain individuals could apply: “[c]urrent [DCMA]” employees or “[c]urrent [DOD] [e]mployee[s] with the Acquisition, Technology, and Logistics . . . [w]orkforce who are outside of the Military Components.” Vassallo, a veteran, applied, but DCMA rejected his application. The Office of Personnel Management (OPM) determined that DOD was not required to afford him veterans employment preferences under the Veterans Employment Opportunities Act of 1998 (VEOA), 112 Stat. 3182. OPM defines the word “agency” in 5 U.S.C. 3304(f)(1) to mean “Executive agency” as defined in 5 U.S.C. 105 and concluded that DCMA was not required to give Vassallo an opportunity to compete under 5 U.S.C. 3304(f)(1) because the DOD— the agency making the announcement—did not accept applications from outside its own workforce. Vassallo sought corrective action from the Merit Systems Protection Board, which concluded that OPM’s regulation permissibly fills a gap in the governing statute. The Federal Circuit affirmed, rejecting arguments that the OPM regulation contradicts the plain terms of the statute and unreasonably undermines the purpose of the VEOA. View "Vassallo v. Dept. of Defense" on Justia Law

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Bay County Utilities provides water and sewer services. The County Commissioners establish rates. In 1966, the U.S. Air Force contracted with the County for water services at Tyndall Air Force Base. The parties entered into a sewer services contract in 1985. Both required the parties to renegotiate any new rates. In 1994, Federal Acquisition Regulations were amended to require standardized clauses in utility service contracts. When the government is contracting with an unregulated utility or the utility is subject to non-independent oversight, the parties must negotiate new rates. If the utility is overseen by an independent regulatory body, no further negotiations are required. In 2007 and 2009, Bay County increased water rates. The Air Force ignored those increases, but, in 2009 and 2010, unilaterally modified the water contract, with new rates, lower than the rates set by Bay County. In 2009 Bay County increased sewer rates. The Air Force refused to pay those higher rates, and instituted a unilateral contract modification to moderately increase sewer rates. Bay County submitted unsuccessful Contract Disputes Act claims to recover the unpaid balance of approximately $850,000. The Federal Circuit affirmed the Court of Federal Claims, holding that Bay County is an independent regulatory body and may revise rates in utility contracts without resorting to negotiations with the Air Force. View "Bay Cnty., Fla. v. United States" on Justia Law

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Duit, an Oklahoma highway contractor, contracted with the Arkansas State Highway and Transportation Department (ASHTD) to reconstruct I-30 between Little Rock and Benton. Duit encountered soil conditions that, it alleges, differed materially from information provided by the ASHTD during bidding. Duit’s claims for compensation were denied by the ASHTD, the Arkansas State Claims Commission, and the General Assembly. Duit sued under 42 U.S.C. 1983, citing the “in re Young” exception to Eleventh Amendment immunity. Duit alleged violations of the Federal Aid Highway Act, 23 U.S.C. 101, and the Due Process and Equal Protection clauses and sought to “enjoin Defendants from accepting federal aid … until . . . they fully comply with the federally mandated differing site clause.” The court dismissed the FAHA claim because that statute is enforced exclusively by an executive agency, dismissed the due process claim because Duit’s interest in future highway contracts is not a protected property interest and because the state appeals process for claim denials satisfies procedural due process requirements. The court declined to dismiss the equal protection claim, concluding Duit sufficiently alleged that the Commission treated out-of-state-contractor Duit differently from similarly situated in-state contractors without a rational reason. The Eighth Circuit held that Duit lacks standing to bring its equal protection claim and that the court erred in not dismissing that claim. View "Duit Constr. Co. Inc. v. Bennett" on Justia Law

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Bridge Company appeals a district court judgment ordering it to donate a toll bridge to the cities of Fargo, North Dakota, and Moorhead, Minnesota, free and clear of all liens. In May 1986, the cities and the Company entered into an agreement for the purpose of construction and operation of a private toll bridge over the Red River connecting the cities. The bridge was completed and started operations on June 1, 1988. The bridge was originally financed with publicly-sponsored bonds issued by Moorhead and capital from an investment firm. In 2004, the cities agreed to allow the Company to refinance the indebtedness, but the refinancing was required to be completely amortized by June 1, 2013, which was 25 years from the commencement of the operation of the bridge. The bank refinancing the debt required personal guarantees from the Company's two shareholders. As of June 1, 2013, the Company owed approximately $75,000 on the refinanced loan. In early September 2013, the Company's two shareholders satisfied their personal guarantees for the debt, and as of September 6, 2013, none of the original indebtedness for construction of the bridge remained outstanding. During the 25-year time span, the Company's records reflected $108,761 was paid for maintenance and repair of the bridge. All of these bills were paid by the Company before February 6, 2014. However, taxes remained owing to Cass County, North Dakota, and Clay County, Minnesota, and the unpaid taxes constituted a lien on the bridge. The district court found that during the 25-year period between June 1, 1988, and June 1, 2013, the bridge was closed 249 days because of flooding on the Red River. Applying an Acts of God clause in the original agreement, the court ruled the 25-year period was extended 249 days to February 5, 2014, and because there was no qualifying debt in existence as of that date, the Company was required to donate the bridge to the cities free and clear of any liens. Because the district court did not err in interpreting the parties' agreement and the court's findings of fact were not clearly erroneous, the North Dakota Supreme Court affirmed the district court's judgment. View "City of Moorhead v. Bridge Co." on Justia Law

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Hospitals that are disadvantaged by their geographic location may reclassify to a different wage index area for certain Medicare reimbursement purposes by applying for redesignation to the Medicare Geographic Classification Review Board. Section 401 of the Medicare, Medicaid, and SCHIP Balanced Budget Refinement Act of 1999, enacted 10 years after the Board was established, creates a separate mechanism by which qualifying hospitals located in urban areas “shall [be] treat[ed] . . . [as] rural” for the same reimbursement purposes. To avoid possible strategic maneuvering by hospitals, the U.S. Department of Health and Human Services issued a regulation providing that hospitals with Section 401 status cannot receive additional reclassification by the Board on the basis of that status, 42 C.F.R. 412.230(a)(5)(iii) (Reclassification Rule). Geisinger, a hospital located in an urban area, received rural designation under Section 401 but was unable to obtain further reclassification by the Board pursuant to the Reclassification Rule. Geisinger sued. The district court upheld the regulation. The Third Circuit reversed, finding that Section 401 is unambiguous: HHS shall treat Section 401 hospitals as rural for Board reclassification purposes, 42 U.S.C. 1395ww(d)(8)(E)(i) View "Geisinger Cmty. Med. Ctr. v. Sec'y United States Dep't of Health & Human Servs." on Justia Law

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Appellants Larry Savage, Richard Pellegrino, and Tucker Hobgood challenged a trial court’s validation of revenue bonds that will be used to help finance a new stadium in Cobb County for the Atlanta Braves major league baseball team. The bonds for the stadium project were to be issued pursuant to an intergovernmental agreement between Cobb County and the Cobb-Marietta Coliseum and Exhibit Hall Authority, under which the Authority agreed to issue bonds to cover much of the cost of constructing the stadium and the County agreed to pay amounts sufficient to cover the bond payments not covered by the licensing fees paid by the team. In consolidated appeals, the Supreme Court concluded that the intergovernmental contract was valid; that the issuance of the bonds would not violate the Georgia Constitution’s debt limitation clause, gratuities clause, or lending clause or Georgia’s revenue bond laws; and that the process used to validate the bonds was not deficient. The Court therefore affirmed the trial court’s judgment validating the stadium project bonds. View "Savage v. Georgia" on Justia Law

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The Georgia Supreme Court granted a discretionary appeal of Elbert County, its Board of Commissioners, and the County Manager (collectively, “the County”) of a superior court order that, inter alia, granted a declaratory judgment to the effect that the Elbert County Solid Waste Disposal Ordinance was unconstitutional, denied the County’s motion to dismiss, and issued a writ of mandamus requiring the County to reasonably consider the site proposed by Sweet City Landfill, LLC and its members for a solid waste landfill. Taking each of the County's contentions of error in turn, the Supreme Court concluded the trial court erred in its decision as to all. The case was remanded therefore for further proceedings. View "Elbert County v. Sweet City Landfill, LLC" on Justia Law

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Greater Houston Partnership (GHP) is a nonprofit corporation providing economic development services to the City and other clients pursuant to quid pro quo contracts. A Houston area resident submitted to GHP a request seeking a copy of GHP’s check register. The resident claimed that GHP is an organization that spends or is supported in whole or in part by public funds, and therefore, GHP is subject to the Texas Public Information Act (TPIA) in the same manner as a governmental body. GHP did not disclose the requested information, claiming that it did not qualify as a “governmental body” under the TPIA because the public funds it received were compensation for services provided to the City of Houston pursuant to a contract. The Attorney General concluded that GHP was subject to the TPIA’s disclosure requirements. The trial court agreed, and the court of appeals affirmed the trial court. The Supreme Court reversed, holding that GHP is not a “governmental body” under the TPIA because it is not wholly or partially sustained by public funds. View "Greater Houston P’ship v. Paxton" on Justia Law

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The Government Printing Office (GPO) received nine bids for a printing order. Colonial was the lowest bidder ($2,418,443.54); Fry was the second lowest ($2,502,545.05). Colonial was a small business. Under its Printing Procurement Regulation, GPO can award contracts only to “responsible” bidders. The contracting officer found Colonial non-responsible, considering previous late deliveries, and recommended an award to Fry. A purchase order issued to Fry. Colonial filed a protest with the Government Accountability Office, arguing that the responsibility determination should have been referred to the Small Business Administration (SBA) Certificate of Competency Program, 15 U.S.C. 637(b)(7), under which a “Government procurement officer” may not preclude a small business from being awarded a government contract due to non-responsibility without referring the matter to the SBA, which responded that “requirements of the COC program could, arguably, apply to GPO and other nonexecutive agencies.” The GAO found that GPO was not subject to the program and that the contracting officer had a reasonable basis for her determination of non-responsibility. The Claims Court held that GPO did not violate the referral requirements and that the GPO’s responsibility determination was not arbitrary. The Federal Circuit affirmed, holding that GPO is not required to refer responsibility determinations to the SBA. View "Colonial Press Int'l, Inc. v. United States" on Justia Law

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Schell filed a qui tam suit under the False Claims Act, 31 U.S.C. 3729-3733, alleging Bluebird made false statements to the government to secure a three-year grant from the National Telecommunications and Information Administration of the U.S. Department of Commerce for increasing broadband accessibility in northern Missouri and retaliated against Schell, a former Bluebird employee, for reporting fraudulent or illegal conduct. The alleged fraud concerned a requirement for matching funds, changing the purpose of the grant, and disclosure of management. The Eighth Circuit affirmed the district court’s entry of summary judgment in Bluebird’s favor. Schell did not show that Bluebird knew that changes would be necessary and obscured the true information or otherwise presented their grant application with the mens rea the FCA requires. View "Schell v. Bluebird Media, LLC" on Justia Law