National Mall Tours of Washington v. DOI , 862 F.3d 35 ( 2017 )


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  •  United States Court of Appeals
    FOR THE DISTRICT OF COLUMBIA CIRCUIT
    Argued April 7, 2017                    Decided July 7, 2017
    No. 16-5080
    NATIONAL MALL TOURS OF WASHINGTON, INC.,
    APPELLANT
    v.
    UNITED STATES DEPARTMENT OF THE INTERIOR, ET AL.,
    APPELLEES
    Appeal from the United States District Court
    for the District of Columbia
    (No. 1:15-cv-00529)
    Kevin R. Garden argued the cause and filed the briefs for
    appellant.
    Brian J. Field, Assistant U.S. Attorney, argued the cause
    for federal appellees. With him on the briefs were R. Craig
    Lawrence and Alexander D. Shoaibi, Assistant U.S. Attorneys.
    Frank S. Swain argued the cause and filed the brief for
    appellee City Sightseeing Washington D.C., Inc.
    Before: TATEL and WILKINS, Circuit Judges, and
    SILBERMAN, Senior Circuit Judge.
    2
    Opinion for the Court filed by Circuit Judge WILKINS.
    WILKINS, Circuit Judge: Appellant National Mall Tours
    of Washington, Inc. (“National Mall Tours”) competed with
    City Sightseeing Washington D.C., Inc., doing business as
    “Big Bus Tours,” for a highly coveted 10-year concession
    contract with the Park Service that would allow it to provide
    guided tours on the National Mall. Big Bus Tours won the
    contract. National Mall Tours sued the U.S. Department of
    Interior, Secretary Sally Jewell, the National Park Service, and
    Director of Park Service Jonathan Jarvis (collectively, the
    “Park Service”) in the District Court under the Administrative
    Procedure Act and the National Park Service Concessions
    Management Improvement Act of 1998, 54 U.S.C. § 101911 et
    seq. (“Concessions Act”). National Mall Tours challenged the
    agency’s decision to proceed with the award of the contract to
    Big Bus Tours despite the fact that Big Bus Tours underwent a
    change of ownership midway through the award process.
    National Mall Tours also challenged the agency’s failure to
    notify two congressional committees of the proposed
    concession contract between the Park Service and Big Bus
    Tours, as allegedly required by the Concessions Act. The
    parties submitted cross-motions for summary judgment. The
    District Court ruled in favor of the Park Service and dismissed
    the action. This appeal followed.
    I.
    We begin by examining the legal framework governing
    awards of concession contracts and then turn to what happened
    in this case.
    3
    A.
    The 1998 Concessions Act and accompanying Park
    Service regulations govern the competitive process by which
    the agency solicits proposals and awards concession contracts
    for visitor services on the National Mall. Generally, the Park
    Service issues a prospectus, bidders (known as “offerors”)
    respond by submitting proposals, and the Park Service then
    selects the winning proposal. The Concessions Act provides
    certain minimum standards the Park Service should follow
    along the way and affords the agency discretion to determine
    whether those standards are met.
    The Concessions Act instructs the Park Service to select
    the offeror with the “best proposal, as determined by the
    Secretary through a competitive selection process,” 54 U.S.C.
    § 101913(1), with reference to various criteria including
    statutorily enumerated Principal Selection Factors, 
    id. §§ 101913(1),
    (5)(A); see 36 C.F.R. § 51.16. For example,
    Principal Selection Factor 3 considers the “experience and
    related background” of the offeror, and Principal Selection
    Factor 4 considers “the financial capability” of the offeror to
    carry out its proposal. 54 U.S.C. § 101913(5)(A)(ii)-(iii). The
    Park Service must take these and other factors into account
    when determining which offeror has the “best” proposal. 
    Id. § 101913(5)(A).
    The Concessions Act also provides certain
    grounds for which the Park Service “shall reject,” or not even
    “consider[]” proposals, when the Park Service “determine[s]”
    that an offeror fails to meet certain standards.             
    Id. § 101913(4)(A)-(B).
    Relevant here, Park Service regulations provide that the
    agency will reject a proposal when it “determin[es]” the
    proposal is not “responsive.” 36 C.F.R. § 51.18. A
    “responsive proposal” is one that the Park Service has
    4
    “determined” “provide[s] the information required by the
    prospectus,” among other things. 
    Id. § 51.3.
    This does not
    mean a proposal lacking any requisite minutiae will necessarily
    be rejected.       Rather, the agency approaches missing
    information with a view toward its materiality – that is, the
    information that it considers to be “required by the Prospectus”
    is that which is both “expressly required by the Prospectus
    and . . . material, as determined by the Service, to an effective
    evaluation of the proposal under the applicable selection
    factor.” Prospectus, J.A. 311 (emphasis added). Importantly,
    once proposals are submitted, offerors are generally prohibited
    from amending or supplementing their proposals. See 36
    C.F.R. § 51.15(a). Thus, omissions can be fatal if the Park
    Service deems them material.
    B.
    In October 2014, the Park Service issued a Prospectus
    soliciting proposals for a 10-year concession contract on the
    National Mall. The Prospectus called for all proposals to be
    submitted by December 12, 2014. At the time, Big Bus Tours
    served as a temporary concessioner with its contract set to
    expire on March 31, 2015.
    Three companies supplied proposals for the contract – Big
    Bus Tours, City Sights D.C., and National Mall Tours. The
    Park Service’s Evaluation Panel reviewed all three proposals,
    scored them, and ultimately recommended that the agency
    select Big Bus Tours to be the concessioner on the new
    contract.     Park Service management approved the
    recommendation, agreeing Big Bus Tours had the best
    proposal. On March 15, 2015, the agency informed each
    bidder of its decision and sent Big Bus Tours a copy of the
    proposed contract for its signature.
    5
    On March 19, after learning it would lose the bid, National
    Mall Tours interjected with an email to a Park Service
    manager: “Are you aware that Big Bus was sold in February of
    this year? Do you know who you are dealing with at this
    point?” The email alluded to the recent acquisition by
    Exponent Private Equity Partners III LP of 60% of the
    outstanding equity of Big Bus Tours Ltd. (“Big Bus UK”),
    which was the United Kingdom-based parent company of Big
    Bus Tours’ own parent company (the “Exponent
    Transaction”). 1
    Four days later, on March 23, the Park Service carried on
    with the award process and sent a letter to Big Bus Tours
    reiterating the agency’s “intent to award” it the contract. J.A.
    1406. On March 26, National Mall Tours interjected again, this
    time with a letter from its counsel to the Park Service outlining
    Big Bus Tours’ recent change in ownership and insisting that
    its proposal was now invalid. The letter did not distinguish
    between Big Bus Tours and Big Bus UK, leaving the
    impression that Big Bus Tours was directly purchased by
    Exponent by variously stating: Big Bus Tours was “acquired
    by a new foreign company” and Exponent “took over control
    of Big Bus Tours.” J.A. 1412-13. Because offerors are
    prohibited from amending their proposals after submission,
    National Mall Tours asserted that the Park Service “is legally
    precluded from proceeding with any award of the contract” to
    Big Bus Tours “given that critical information related to the
    evaluation of Big Bus Tours has changed since proposals were
    submitted.” J.A. 1413-14. Thus, National Mall Tours
    requested that the Park Service “voluntarily rescind” its
    1
    At all relevant times, Big Bus Tours (D.C.) was 100% owned by
    Open Top Sightseeing USA (D.C.), which was in turn 100% owned
    by Big Bus UK.
    6
    decision to award the contract to Big Bus Tours or else face
    National Mall Tours in court. J.A. 1414.
    A flurry of emails among Park Service managers ensued,
    raising concerns that Big Bus Tours’ proposal might have
    depended on funding that no longer exists. They determined it
    was necessary to request information from Big Bus Tours
    about the Exponent Transaction. On March 27, the Park
    Service emailed Big Bus Tours, “request[ing]” that it
    “resubmit” its responses to Principal Selection Factors 3 and 4
    to reflect “the new ownership information.” J.A. 1455. Those
    selection factors concerned the organizational structure and
    financial ability of the offeror, respectively. The Park Service
    also requested that Big Bus Tours “provide a narrative or a
    revised proposal signifying all the references of the previous
    ownership replaced by the new ownership.” J.A. 1455.
    Big Bus Tours responded the following day with a two-
    page letter (the “March 28 Letter”), advising the agency of
    various things that remained “unchanged” as a result of the
    Exponent Transaction, implying it did not need to supplement
    or revise its proposal.       It explained that Exponent’s
    “investment” in Big Bus Tours’ “London Company . . . in no
    way affects the tender submitted with no change in control or
    ownership structure of our US operations.” J.A. 1456. Big Bus
    Tours also asserted that the “change has no [e]ffect” on its
    responses to Principal Selection Factors 3 or 4. J.A. 1456.
    With respect to the corporate ownership information required
    by Principal Selection Factor 3, Big Bus Tours said that its
    “corporate structure . . . remains unchanged,” though it
    acknowledged that Big Bus Tours’ grandparent (Big Bus UK)
    was now “beneficially owned” by Exponent. J.A. 1456-57. As
    for Principal Selection Factor 4, Big Bus Tours explained that
    Exponent’s investment would result in no change in its
    financial capacity as outlined in the proposal and specifically
    7
    there was “no change to Investment, Income and Cash Flow
    schedules as originally supplied in the [Principal Selection
    Factor 4] Excel Forms.” J.A. 1457.
    On March 30, Park Service managers conferred over email
    and determined to proceed with the award to Big Bus Tours,
    signing the contract that same day. J.A. 1515-16.
    National Mall Tours filed a lawsuit in the District Court,
    challenging the Park Service’s award decision. Big Bus Tours
    joined the proceeding as an Intervenor-Defendant. The parties
    filed their respective motions for summary judgment on the
    administrative record. The District Court denied National Mall
    Tours’ motion for summary judgment and granted summary
    judgment to the Park Service. This appeal followed.
    National Mall Tours’ chief contention is that the Exponent
    Transaction affected Big Bus Tours’ proposal in a material way
    such that the Park Service lacked a rational basis for awarding
    the contract to Big Bus Tours once it learned about the change
    in ownership. It also argues that the Park Service flouted its
    statutory obligation to submit the proposed concession contract
    to certain congressional committees prior to finalizing the
    award.
    II.
    We review a district court’s grant of summary judgment
    de novo. Grossmont Hosp. Corp. v. Burwell, 
    797 F.3d 1079
    ,
    1082 (D.C. Cir. 2015). “[B]ecause we review the district
    court’s judgment, not its reasoning, we may affirm on any
    ground properly raised.” Jones v. Bernanke, 
    557 F.3d 670
    , 674
    (D.C. Cir. 2009) (quoting EEOC v. Aramark Corp., 
    208 F.3d 266
    , 268 (D.C. Cir. 2000)).
    8
    We review the agency’s decision under the standard of the
    Administrative Procedure Act. 5 U.S.C. § 706(2)(A). In the
    context of reviewing agency contract decisions, our “role . . . is
    limited to determining whether the agency acted in accord with
    applicable statutes and regulations and had a rational basis for
    its decisions.” LeBoeuf, Lamb, Greene & MacRae, LLP v.
    Abraham, 
    347 F.3d 315
    , 320 (D.C. Cir. 2003) (quoting Delta
    Data Sys. Corp. v. Webster, 
    744 F.2d 197
    , 204 (D.C. Cir.
    1984)). In this limited capacity, we must refrain from
    “imposing [our] own views of proper procedures” upon the
    Park Service and “improperly intrud[ing] into [its]
    decisionmaking process.” 
    Id. (quoting Vt.
    Yankee Nuclear
    Power Corp. v. Nat. Res. Def. Council, 
    435 U.S. 519
    , 525
    (1978)). National Mall Tours is similarly constrained. As a
    “disappointed bidder” challenging the agency’s decision to
    award the contract to its competitor, National Mall Tours “must
    show either that the agency’s decision lacked a rational basis
    or that the ‘procurement procedure involved a clear and
    prejudicial violation of applicable statutes or regulations.’” 
    Id. (quoting Kentron
    Hawaii, Ltd. v. Warner, 
    480 F.2d 1166
    , 1169
    (D.C. Cir. 1973)).
    III.
    National Mall Tours’ first claim is that the responses
    provided by Big Bus Tours in its proposal were “no longer
    accurate or reliable” after the Exponent Transaction, and the
    Park Service’s decision to proceed with the award in spite of
    that necessarily “lacked a rational basis and was arbitrary,
    capricious, and an abuse of discretion.” Appellant Br. 42.
    We consider National Mall Tours’ theory against the
    following backdrop. First, the Park Service has considerable
    discretion to select and reject proposals under the Concessions
    Act. According to its own procedures, the Park Service must
    9
    reject a proposal when it determines that the offeror omitted
    material information (rendering the proposal non-
    “responsive”), with materiality being ascertained by the Park
    Service. See 36 C.F.R. §§ 51.18, 51.3; J.A. 311. National Mall
    Tours does not dispute that Big Bus Tours’ original proposal
    was accurate and fully “responsive” to the Prospectus
    requirements at the time of its submission, 36 C.F.R. § 51.18,
    or that the Park Service rightfully decided that Big Bus Tours’
    proposal was “best” in accordance with the Concessions Act
    and selected Big Bus Tours to be the concessioner prior to
    learning about the Exponent Transaction.
    National Mall Tours takes issue with the Park Service’s
    continued reliance on the original proposal once the agency
    became aware of the Exponent Transaction. But there is no
    regulatory guidance for how the Park Service must proceed if
    an offeror’s ownership changes after a proposal is submitted.
    Under these circumstances, it was reasonable for the agency to
    make a limited request of the offeror to ascertain whether the
    change in ownership impacted its existing proposal. The first
    issue we consider is whether the response provided by Big Bus
    Tours in its March 28 Letter constituted an unlawful
    amendment. The answer will shape the scope of the
    information the agency could consider in determining whether
    to proceed with the award to Big Bus Tours.
    A.
    Offerors are generally prohibited from “amend[ing] or
    supplement[ing]” a proposal following its submission. 36
    C.F.R. § 51.15(a). National Mall Tours uses this prohibition to
    craft an automatic-disqualification rule, arguing the Exponent
    Transaction created inaccuracies and omissions in the proposal
    that the Park Service could not rationally ignore but that Big
    Bus Tours also was not allowed to cure without an unlawful
    10
    amendment. Given such a predicament, National Mall Tours
    suggests the Park Service had no choice but to reject Big Bus
    Tours’ proposal as “invalid,” without considering the March 28
    Letter. Appellant Br. 12-13. As this Court said of a
    disappointed bidder’s thesis over half a century ago: “This is
    an extremely ingenious argument but it is in our opinion
    entirely unsound.” Fulton Iron Co. v. Larson, 
    171 F.2d 994
    ,
    997 (D.C. Cir. 1948).
    We reject the notion that the agency’s knowledge of a
    change in circumstances that might impact an offeror’s
    proposal necessarily invalidates that proposal. Such a
    straightjacketed approach assumes that any omission rendered
    after submission is necessarily both material and detrimental to
    the original proposal. But not every omission is per se material,
    and even a material omission is not necessarily the death knell
    National Mall Tours had hoped for. What if the Exponent
    Transaction materially improved Big Bus Tours’ candidacy?
    Or, to offer a more concrete example, suppose the number of
    buses each offeror had at its disposal was critical to the Park
    Service; and suppose Big Bus Tours said it had ten buses in its
    proposal, but it later acquired five more without telling the Park
    Service. Then, after learning the Park Service selected Big Bus
    Tours, National Mall Tours wrote the agency an ominous
    email: “Did you hear the news about Big Bus Tours’ buses?
    Do you even know how many buses it has at this point?” Under
    National Mall Tours’ game of gotcha, the agency’s knowledge
    of a potential change to the proposal in a category of
    information it deems material renders the proposal invalid and
    disqualifies the offeror.
    Given the Concessions Act’s goal of obtaining the best
    concessioners, and the discretion afforded to the Park Service
    to evaluate the merits of proposals, we see no basis for
    automatic disqualification when no regulation calls for it.
    11
    However, the issue remains whether it was permissible for the
    Park Service to rely on the March 28 Letter to reach its decision
    to proceed with the award to Big Bus Tours. Although
    National Mall Tours asserts that the March 28 Letter
    constitutes an unlawful amendment, it does not assert any
    prejudice. For example, National Mall Tours does not claim it
    should have received a “similar opportunity to amend or
    supplement” its own proposal, 36 C.F.R. § 51.15(a), or that Big
    Bus Tours gained an advantage in having an invitation to do
    so. Indeed, National Mall Tours’ complaint is not that the letter
    supplemented the proposal but rather that it let the proposal be,
    allowing Big Bus Tours to rest on its pre-existing laurels.
    Thus, there is no serious dispute that this case does not
    involve a “clear and prejudicial” violation of the applicable
    regulations. See 
    LeBoeuf, 347 F.3d at 320
    . Our review is
    instead limited to whether the agency’s decision to proceed
    with the award “lacked a rational basis” based on the
    information provided to it, including the March 28 Letter. See
    
    id. B. Because
    the agency already decided Big Bus Tours had the
    best proposal, the relevant inquiry is whether the Exponent
    Transaction should have changed its calculus. In this context,
    the question is not just whether the Exponent Transaction
    impacted the proposal, but whether any such impact was
    material. We think if the Park Service had a rational basis for
    concluding there was no material change to Big Bus Tours’
    proposal, then its decision to proceed with the award would
    also be rational.
    So, what changed? National Mall Tours does little to
    substantiate its sweeping assertion that Big Bus Tours’
    12
    proposal became “inaccurate and unreliable” following the
    Exponent Transaction. The only inaccuracy it identifies in Big
    Bus Tours’ proposal is a statement that no individual or entity
    owned more than 25% of Big Bus UK, which was no longer
    true following the Exponent Transaction. That fact was
    revealed by the March 28 Letter, if not sooner by National Mall
    Tours’ letter two days prior. Thus, National Mall Tours’ theory
    relies primarily on alleged omissions. But the only omission it
    points to is a disclosure required under an unscored portion of
    Principal Selection Factor 3. 2
    Principal Selection Factor 3 considers the “experience and
    related background of the Offeror, including the past
    performance and expertise of the Offeror in providing the same
    or similar visitor services as those to be provided under the
    concession contract.” J.A. 324. Under that selection factor, the
    offeror must provide information about its organizational
    structure that is “not . . . scored for selection purposes” but is
    used “[t]o assist in the evaluation of proposals under this and
    other selection factors.” J.A. 324. Relevant here, the offeror
    must identify “all levels of parent organizations,” and “any
    individual or business entity that holds or will hold a
    controlling interest in the Offeror.” 3 J.A. 324 (emphasis
    2
    In the District Court, National Mall Tours claimed other parts of the
    proposal were impacted by the Transaction, including responses to
    Principal Selection Factor 4, which considers “the financial
    capability of the offeror to carry out its proposal,” J.A. 329, and
    certifications pertaining to civil and criminal liability. But it does
    not press those arguments on appeal.
    3
    To the extent National Mall Tours is concerned about the possibility
    of a nefarious offeror being able to postpone an anticipated change
    in ownership until after submission of its proposal, it appears that
    circumstance would be covered by the required disclosure of “any
    individual or business entity that . . . will hold a controlling interest
    in the Offeror.” J.A. 324 (emphasis added).
    13
    added). National Mall Tours contends Exponent became an
    entity with a “controlling interest” in Big Bus Tours, not just
    its grandparent (Big Bus UK), and thus would have triggered a
    disclosure about Exponent had the Transaction occurred prior
    to submission. The Park Service disputes that is so, asserting
    Exponent did not hold a “controlling interest” in Big Bus Tours
    as that term is defined in the regulations. 4 See 36 C.F.R.
    § 51.84. The parties’ briefs are consumed by this question, but
    we need not decide whether the Park Service’s rather
    confounding interpretation of “controlling interest” is entitled
    to deference on this point. 5 Even assuming that the Exponent
    Transaction implicated the disclosure under Principal Selection
    Factor 3, National Mall Tours fails to show it constituted a
    material change to the proposal such that it was irrational for
    the agency to proceed with the award. In the parlance of the
    APA, it fails to show “prejudicial error.” 5 U.S.C. § 706.
    The Park Service examined the facts before it regarding
    the Exponent Transaction, and determined the transaction did
    not render a material change in Big Bus Tours’ proposal.
    National Mall Tours’ only response is that ownership changes
    4
    “Controlling interest” is defined as “an interest, beneficial or
    otherwise, of sufficient outstanding voting securities or capital of the
    concessioner or related entities that permits the exercise of
    managerial authority over the actions and operations of the
    concessioner.” 36 C.F.R. § 51.84.
    5
    The Park Service’s primary contention is that the phrase “permits
    the exercise of managerial authority” means there must be evidence
    of Exponent’s “inten[tion]” to exercise managerial authority over
    Big Bus Tours. Appellee Br. 14. The District Court agreed. See
    Nat’l Mall Tours of Wash., Inc. v. U.S. Dep’t of the Interior, No. 15-
    0529, 
    2016 WL 8711706
    , at *9 (D.D.C. Mar. 18, 2016). We save
    that question for another day, but note that Black’s Law Dictionary
    (10th ed. 2014) defines “permit” in terms of potentiality, not
    actuality, e.g., “[t]o give opportunity for” or “[t]o allow.”
    14
    are categorically material, attempting to override any agency
    discretion in the matter. In particular, it points to the fact that
    Park Service regulations require the agency to pre-approve
    certain changes in ownership effectuated by existing
    concessioners, 36 C.F.R. § 51.85(c), and failure to obtain the
    agency’s assent constitutes a material breach of a concession
    contract, 
    id. § 51.88.
    But National Mall Tours concedes those
    regulations do not apply to offerors. Even if the regulations did
    apply, under the Park Service’s interpretation of the pre-
    approval regime, the Exponent Transaction would not require
    its approval. The Park Service’s view is supported by our dicta
    in Amfac Resorts, LLC v. Dep’t of the Interior, 
    282 F.3d 818
    ,
    836-38 (D.C. Cir. 2002), vacated in part on other grounds sub
    nom. Nat’l Park Hosp. Ass’n v. Dep’t of Interior, 
    538 U.S. 803
    (2003), which suggested that prior approval is only required
    under 36 C.F.R. § 51.85(c) when the ownership change is
    effectuated by the concessioner itself, not by a parent or
    grandparent. In light of our dicta, the Park Service’s
    interpretation is certainly a “permissible” one. Decker v. Nw.
    Envtl. Def. Ctr., 
    133 S. Ct. 1326
    , 1326, 1337 (2013). In sum,
    we see nothing categorically material about the ownership
    change here.
    By considering materiality in the abstract, National Mall
    Tours fails to grapple with the critical question in this case
    given the posture of the award process: it is not whether
    ownership information is material, but rather whether the
    change in ownership rendered a material change in Big Bus
    Tours’ proposal. This is a case-specific inquiry, and National
    Mall Tours offers no reason to question the Park Service’s
    judgment that the Exponent Transaction did not result in such
    a change. Thus, we affirm the District Court’s grant of
    summary judgment as to the Park Service’s decision to award
    the contract to Big Bus Tours.
    15
    IV.
    National Mall Tours’ second claim challenges the Park
    Service’s failure to notify certain congressional committees of
    the proposed concession contract with Big Bus Tours.
    The Concessions Act requires the Park Service to “submit”
    the “proposed concession contract . . . to the Committee on
    Natural Resources of the House of Representatives and the
    Committee on Energy and Natural Resources of the Senate” if
    the contract has “anticipated annual gross receipts in excess of
    $5,000,000 or a duration of more than 10 years.” 54 U.S.C.
    § 101913(6). In such cases, the Park Service “shall not award
    [the] proposed concession contract . . . until at least 60 days
    subsequent to the notification” of these congressional
    committees. 
    Id. National Mall
    Tours claims the Park Service
    should have submitted the contract to these congressional
    committees because it had anticipated gross receipts exceeding
    $5 million. The Park Service responds that National Mall
    Tours lacks standing to assert this claim and that, in any event,
    notification was not required because it reasonably relied on
    estimates suggesting the $5 million threshold would not be
    crossed. In considering whether National Mall Tours has
    standing, we assume it would succeed on the merits, i.e., that
    these congressional committees should have been notified.
    See City of Waukesha v. EPA, 
    320 F.3d 228
    , 235 (D.C. Cir.
    2003).
    To demonstrate Article III standing, a plaintiff must
    “establish, as an ‘irreducible constitutional minimum,’ that
    they face ‘injury in fact’ caused by the challenged conduct and
    redressable through relief sought from the court.” Safari Club
    Int’l v. Jewell, 
    842 F.3d 1280
    , 1285 (D.C. Cir. 2016). “The
    party invoking federal jurisdiction bears the burden of
    establishing these elements.” Scenic Am., Inc. v. U.S. Dep’t of
    16
    Transportation, 
    836 F.3d 42
    , 48 (D.C. Cir. 2016) (quoting
    Lujan v. Defs. of Wildlife, 
    504 U.S. 555
    , 561 (1992)). On
    summary judgment, “the plaintiff can no longer rest
    on . . . mere allegations, but must set forth by affidavit or other
    evidence specific facts” that “at least raise a disputed issue of
    fact as to each element of standing.” 
    Id. at 48-49
    (citation and
    alterations omitted).
    National Mall Tours claims its injury was being deprived
    of “a legally valid procurement process,” which it asserts was
    caused by the Park Service’s failure to submit the concession
    contract to these two congressional committees 60 days prior
    to finalizing the award to Big Bus Tours. Appellant Br. 49.
    We have previously recognized that a “disappointed bidder”
    has the right to “a legally valid procurement process,” the
    deprivation of which constitutes a cognizable injury. Alvin Lou
    Media, Inc. v. FCC, 
    571 F.3d 1
    , 3 (D.C. Cir. 2009) (citation
    omitted); see also U.S. Airwaves, Inc. v. FCC, 
    232 F.3d 227
    ,
    232 (D.C. Cir. 2000); Scheduled Airlines Traffic Offices, Inc.
    v. Dep’t of Def., 
    87 F.3d 1356
    , 1358 (D.C. Cir. 1996). An
    injury to “a bidder’s right to a fair procurement is obviously an
    injury both traceable to the alleged illegality in a procurement
    and redressable by any remedy that eliminates the alleged
    illegality.” Nat’l Mar. Union of Am. v. Commander, Military
    Sealift Command, 
    824 F.2d 1228
    , 1237-38 (D.C. Cir. 1987).
    As such, the bidder “need not show that it would be successful”
    in a new round of procurement, “but only that it was able and
    ready to bid and that the decision of the [agency] prevented it
    from doing so on an equal basis.” Alvin Lou 
    Media, 571 F.3d at 6
    (quoting High Plains Wireless LP v. FCC, 
    276 F.3d 599
    ,
    605 (D.C. Cir. 2002)).
    National Mall Tours is surely disappointed, but for
    purposes of this claim, it does not substantiate its assertion that
    it was harmed by an unlawful procurement process. National
    17
    Mall Tours acknowledges that submission of the contract to the
    committees was not required until after the agency made its
    award decision and the competitive process was effectively
    over. It is not self-evident that a bidder with a stake in the
    award process would be injured by the agency’s failure to
    inform congressional committees of its final award decision;
    and National Mall Tours does not advance its own theory
    except to point to the fact that notification was a requisite “last
    step” in the award process. Appellant Br. 54. Yet National
    Mall Tours appears to concede this last step implicates interests
    entirely distinct from the competitive award process,
    acknowledging that the “deficiency” it complains of “does not
    require the agency to undo anything it has done or require
    changes to any proposals or a new evaluation by the agency.”
    
    Id. In other
    words, it asserts no flaw in the process by which
    the agency reached its final award decision. Rather than ask to
    undo the award or give it another opportunity to bid, National
    Mall Tours “merely” seeks to have the final, ongoing
    concession contract submitted to two congressional
    committees. 
    Id. The disconnect
    between National Mall Tours’ theory of
    standing and that of the ordinary disappointed bidder is further
    highlighted when we consider causation. Our procedural
    injury cases are instructive. In such cases, where a plaintiff
    challenges an agency’s failure to effectuate a required
    procedure, the plaintiff must show “it is substantially probable
    that the procedural breach will cause the essential injury to the
    plaintiff’s own interest.” Fla. Audubon Soc’y v. Bentsen, 
    94 F.3d 658
    , 665 (D.C. Cir. 1996) (en banc); accord WildEarth
    Guardians v. Jewell, 
    738 F.3d 298
    , 305-07 (D.C. Cir. 2013).
    Among other things, that means showing a connection between
    “the omitted procedure and some substantive government
    decision that may have been wrongly decided because of the
    lack of the procedure.” City of 
    Waukesha, 320 F.3d at 234
                                   18
    (internal quotation marks and alterations omitted) (quoting Fla.
    Audubon 
    Soc’y, 94 F.3d at 668
    ). Here, however, National Mall
    Tours asserts no connection between the agency’s failure to
    notify the two congressional committees and its substantive
    decision to award the contract to Big Bus Tours. Thus, even if
    the agency should have notified the congressional committees
    as part of the award process, National Mall Tours has not
    shown how that failure caused it any cognizable injury. Cf.
    DIRECTV, Inc. v. FCC, 
    110 F.3d 816
    , 830 (D.C. Cir. 1997)
    (disappointed bidder failed to show agency’s decision to allow
    cable industry to participate in auction caused it any injury
    where only one cable company participated in the auction and
    that company was not the highest bidder). In sum, National
    Mall Tours fails to demonstrate it has standing to bring this
    claim.
    V.
    For the foregoing reasons, we affirm the District Court’s
    grant of summary judgment to the Park Service regarding the
    agency’s decision to award the contract to Big Bus Tours.
    Because we hold National Mall Tours lacks standing to
    bring its claim regarding submission of the contract to certain
    congressional committees, the District Court lacked
    jurisdiction to hear it. Thus, we vacate the portions of the
    District Court’s order addressing that claim and remand the
    case with instructions to dismiss it for lack of jurisdiction. See
    Conservation Force, Inc. v. Jewell, 
    733 F.3d 1200
    , 1207 (D.C.
    Cir. 2013); Nader v. Fed. Election Comm’n, 
    725 F.3d 226
    , 230
    (D.C. Cir. 2013).
    So ordered.
    

Document Info

Docket Number: 16-5080

Citation Numbers: 862 F.3d 35

Filed Date: 7/7/2017

Precedential Status: Precedential

Modified Date: 1/12/2023

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