Nika Technologies, Inc. v. United States ( 2021 )


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  • Case: 20-1924    Document: 15      Page: 1   Filed: 02/04/2021
    United States Court of Appeals
    for the Federal Circuit
    ______________________
    NIKA TECHNOLOGIES, INC.,
    Plaintiff
    v.
    UNITED STATES,
    Defendant-Appellant
    ______________________
    2020-1924
    ______________________
    Appeal from the United States Court of Federal Claims
    in No. 1:20-cv-00299-CFL, Senior Judge Charles F. Lettow.
    ______________________
    Decided: February 4, 2021
    ______________________
    JAMES WILLIAM POIRIER, Commercial Litigation
    Branch, Civil Division, United States Department of Jus-
    tice, Washington, DC, argued for defendant-appellant.
    Also represented by JEFFREY B. CLARK, ROBERT EDWARD
    KIRSCHMAN, JR., DOUGLAS K. MICKLE.
    ______________________
    Before PROST, Chief Judge, LOURIE and HUGHES, Circuit
    Judges.
    HUGHES, Circuit Judge.
    Bid protests filed at the Government Accountability Of-
    fice within five days of debriefing invoke an automatic stay
    Case: 20-1924    Document: 15      Page: 2    Filed: 02/04/2021
    2                  NIKA TECHNOLOGIES, INC.   v. UNITED STATES
    of performance of the underlying contract under 
    31 U.S.C. § 3553
    (d). NIKA Technologies, Inc. filed a bid protest at the
    GAO six days after receiving a written debriefing regard-
    ing its failed bid on a government contract, but the GAO
    denied an automatic stay as untimely. NIKA filed an action
    at the Court of Federal Claims, which instituted the stay.
    The government appeals. Because we hold that the plain
    language of 
    31 U.S.C. § 3553
    (d) dictates that the deadline
    for invoking the automatic stay is five days after the writ-
    ten debriefing is supplied (unless, as discussed below, the
    protestor submits additional questions), we reverse.
    I
    The Army Corps of Engineers issued a request for pro-
    posals seeking services for its Operation and Maintenance
    Engineering and Enhancement Program. NIKA bid but
    was not awarded a contract, so the Corps alerted NIKA to
    its right to request a debriefing. NIKA made a timely re-
    quest for debriefing. On March 4, 2020, the Corps sent
    NIKA a written debriefing and alerted NIKA of the right
    to submit additional questions. NIKA did not submit any
    additional questions. NIKA filed a protest at the GAO on
    March 10—six days after the written debriefing.
    Under 
    31 U.S.C. § 3553
    (d), bid protests filed at the
    GAO invoke an automatic stay of procurement during the
    pendency of the protest if the federal agency awarding the
    contract receives notice within five days of debriefing. But
    here, the GAO denied the stay as untimely because NIKA
    did not file its protest with the GAO until six days after
    receiving a written debriefing.
    NIKA then filed an action at the Court of Federal
    Claims on the theory that, although the debriefing period
    began upon receipt of the written debriefing, debriefing did
    not end until two days later. NIKA cited 
    10 U.S.C. § 2305
    (b)(5)(B)(vii), which states that “[t]he debriefing
    shall include . . . an opportunity for a disappointed offeror
    to submit, within two business days after receiving a post-
    Case: 20-1924     Document: 15      Page: 3    Filed: 02/04/2021
    NIKA TECHNOLOGIES, INC.   v. UNITED STATES                   3
    award debriefing, additional questions related to the de-
    briefing.” The Court of Federal Claims sided with NIKA
    and instituted the stay.
    Since that time, the bid protest has concluded, which
    means that the stay has also ended. Thus, although the
    government appeals, NIKA no longer has an interest in
    the case and has not responded.
    II
    As a threshold matter, we address whether the case is
    moot.
    The order that the government challenges expired on
    June 5, 2020. J.A. 1. Thus, any decision from this court
    would not directly affect the parties, which presents moot-
    ness concerns. See DeFunis v. Odegaard, 
    416 U.S. 312
    , 317
    (1974) (citations omitted) (noting that when a case “no
    longer ‘touch(es) the legal relations of parties having ad-
    verse legal interests’” it is generally moot).
    However, there is an exception to the mootness doc-
    trine for cases capable of repetition but evading review.
    “That exception applies ‘only in exceptional situations,’
    where (1) ‘the challenged action [is] in its duration too short
    to be fully litigated prior to cessation or expiration,’ and
    (2) ‘there [is] a reasonable expectation that the same com-
    plaining party [will] be subject to the same action again.’”
    Kingdomware Techs., Inc. v. United States, 
    136 S. Ct. 1969
    ,
    1976 (2016) (quoting Spencer v. Kemna, 
    523 U.S. 1
    , 17
    (1998)). We address these two prongs below.
    A
    Because of the legal time constraints, this is an issue
    that is evading review. Some cases are inherently unlikely
    to get through the judicial-review process before they
    would become moot. Here, by statute, GAO bid protests
    must be decided within 100 days of submission. 
    31 U.S.C. § 3554
    (a)(1). By regulation, the GAO does not decide
    Case: 20-1924     Document: 15      Page: 4    Filed: 02/04/2021
    4                  NIKA TECHNOLOGIES, INC.   v. UNITED STATES
    disputes about the stay of procurement activities. 
    4 C.F.R. § 21.6
    . Therefore, in order to receive judicial review regard-
    ing a GAO stay of procurement activities, a party has at
    most 100 days for proceedings at the Court of Federal
    Claims (concerning whether a protest at the GAO was filed
    in time for the protester to invoke the stay), for the United
    States to get permission to appeal, for the United States to
    file an appeal with this court, and for this court to consider
    and decide the case. Completing all these activities in 100
    days is unrealistic, if not impossible. Therefore, this issue
    is evading review. See, e.g., Kingdomware Techs., Inc., 136
    S. Ct. at 1976 (2016) (holding that an issue was evading
    review because there were only two years to complete judi-
    cial review before the case would be rendered moot).
    B
    This issue is also capable of repetition. “[T]he capable-
    of-repetition doctrine applies… generally only where the
    named plaintiff can make a reasonable showing that he
    will again be subjected to the alleged illegality.” City of Los
    Angeles v. Lyons, 
    461 U.S. 95
    , 109 (1983). In other words,
    we must decide whether there is a reasonable expectation
    that the party invoking review here will run into this same
    problem again. See Kingdomware Techs, Inc., 136 S. Ct. at
    1976. The question is “whether the controversy [is] capable
    of repetition and not . . . whether the claimant [has] demon-
    strated that a recurrence of the dispute was more probable
    than not.” Honig v. Doe, 
    484 U.S. 305
    , 318 n.6 (1988) (em-
    phasis added). Here, there is a “reasonable expectation
    that” the government “[will] be subject to the same action
    again” because it is likely that future bid protestors will
    rely on the Court of Federal Claims’ decision below and
    wait beyond the deadline to invoke a stay of procurement.
    See Kingdomware Techs., Inc., 136 S. Ct. at 1976 (altera-
    tion in original). In 2019, there were 2,198 bid protests at
    the GAO, many of which involved potential stays on pro-
    curement. U.S. Gov’t Accountability Off., GAO-20-220SP,
    GAO Bid Protest Annual Report to Congress for Fiscal
    Case: 20-1924     Document: 15       Page: 5   Filed: 02/04/2021
    NIKA TECHNOLOGIES, INC.   v. UNITED STATES                    5
    Year 2019 (2019). The government will be involved in all
    future bid protests, and there is a reasonable expectation
    that the deadline will be missed by future bid protestors,
    given the number of protests and the short timeline for pro-
    tests.
    We hold that this issue is capable of repetition but
    evading review and therefore consider the merits.
    III
    One statutory incentive for bid protestors to file claims
    at the GAO rather than the Court of Federal Claims is that
    a bid protester is entitled to invoke a stay on procurement
    for the duration of the GAO proceedings. To invoke this
    stay, the protester must file at the GAO quickly, before one
    of two deadlines: within ten days of the contract award or
    within five days of the debriefing date offered for a required
    debriefing. These deadlines are codified in 
    31 U.S.C. § 3553
    (d), the statute at issue here, which we reproduce in
    part below:
    (3)(A) If the Federal agency awarding the contract
    receives notice of a protest in accordance with this
    section during the period described in paragraph
    (4)—
    (i) the contracting officer may not authorize
    performance of the contract to begin while
    the protest is pending;
    ...
    (4)(A) The period referred to in . . . (3)(A), with re-
    spect to a contract, is the period beginning on the
    date of the contract award and ending on the later
    of—
    (i) the date that is 10 days after the date of
    the contract award; or
    Case: 20-1924     Document: 15      Page: 6    Filed: 02/04/2021
    6                  NIKA TECHNOLOGIES, INC.    v. UNITED STATES
    (ii) the date that is 5 days after the debrief-
    ing date offered to an unsuccessful offeror
    for any debriefing that is requested and,
    when requested, is required.
    
    31 U.S.C. § 3553
    (d). Here, it is undisputed that NIKA
    missed the first deadline (ten days after the contract
    award), so the issue is the meaning of § 3553(d)(4)(A)(ii):
    “the date that is 5 days after the debriefing date. . .”
    IV
    We hold that the plain meaning of the statute is that
    the deadline in 
    31 U.S.C. § 3553
    (d)(4)(A)(ii) is five days af-
    ter receipt of debriefing. In other words, we hold that the
    debriefing is not automatically held open for an additional
    two days.
    The plain meaning of § 3553(d)(4)(A)(ii) is that the
    clock starts on the day that the bidder receives debriefing.
    The statute refers to “the debriefing date,” using the singu-
    lar form of the noun. § 3553(d)(4)(A)(ii) (emphasis added).
    If Congress thought otherwise, it could have said “the end
    of the debriefing period,” but instead it said “the debriefing
    date.” This indicates that the proper interpretation is that
    the timer starts on the day that a bidder receives its de-
    briefing, not two days afterward. It would be at odds with
    the plain meaning to interpret the statute to define “the
    debriefing date” as a day on which no actual debriefing oc-
    curred.
    Nevertheless, the Court of Federal Claims held that
    
    10 U.S.C. § 2305
    (b)(5)(B)(vii) defines the term “debriefing”
    when it says: “The debriefing shall include . . . an oppor-
    tunity for a disappointed offeror to submit, within two busi-
    ness days after receiving a post-award debriefing,
    additional questions related to the debriefing. . . .” J.A. 5–
    6. The court emphasized the language “shall include,” and
    held that the statute therefore mandated that the debrief-
    ing last until this two-day window ends. J.A. 6. But this
    Case: 20-1924    Document: 15      Page: 7    Filed: 02/04/2021
    NIKA TECHNOLOGIES, INC.   v. UNITED STATES                 7
    interpretation overlooks the word “after.” While the statute
    mandates a two-day opportunity to ask questions, it man-
    dates it “after… debriefing,” which means that the two-day
    period for questions occurs within the five-day window for
    filing a protest. 
    10 U.S.C. § 2305
    (b)(5)(B)(vii) (emphasis
    added).
    Moreover, when Congress has wanted to extend the
    deadline in this statutory scheme, it has done so explicitly.
    For example, § 2305(b)(5)(C) states that when there are ad-
    ditional questions submitted “[t]he agency shall not con-
    sider the debriefing to be concluded until the agency
    delivers its written responses. . . .” By implication, when
    there are no additional questions submitted, as here, the
    debriefing period is not held open. 1
    We hold that the plain meaning of the statutory
    scheme is that when no additional questions are submitted,
    the “debriefing date” is simply the date upon which the
    party receives its debriefing. The five-day period described
    in subparagraph (A)(ii) begins on the debriefing date, ra-
    ther than two days later. Because NIKA did not file at the
    GAO within the five-day period, it did not timely invoke the
    stay.
    1   Similarly, 
    31 U.S.C. § 3553
    (d)(4)(B) states: “For
    procurements conducted by any component of the Depart-
    ment of Defense, the 5-day period described in subpara-
    graph (A)(ii) does not commence until the day the
    Government delivers to a disappointed offeror the written
    responses to any questions submitted pursuant to section
    2305(b)(5)(B)(vii) of title 10.” This section also emphasizes
    that when additional questions are submitted, the deadline
    is extended, which implies that the deadline is generally
    not extended.
    Case: 20-1924     Document: 15     Page: 8    Filed: 02/04/2021
    8                  NIKA TECHNOLOGIES, INC.   v. UNITED STATES
    V
    Because NIKA did not supply notice of its protest at the
    GAO within five days of receiving its debriefing, we hold
    that it did not meet the deadline of 
    31 U.S.C. § 3553
    (d)(4)(A)(ii) for invoking the stay. Accordingly, we re-
    verse the decision of the Court of Federal Claims.
    REVERSED
    No costs.
    

Document Info

Docket Number: 20-1924

Filed Date: 2/4/2021

Precedential Status: Precedential

Modified Date: 2/4/2021