UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
HEART 6 RANCH, LLC,
Plaintiff
Civil Action No. 17-2711 (CKK)
v.
DAVID BERNHARDT, et al.,1
Defendants
MEMORANDUM OPINION
(February 5, 2019)
This is an Administrative Procedure Act (“APA”) case challenging the manner by which
the National Park Service (“NPS”) has reallocated the rights to provide oversnow vehicle shuttle
service transportation events in Yellowstone National Park. Before the Court is Plaintiff’s [23]
Motion for Judgment on the Administrative Record and Defendants’ [25] Cross-Motion for
Summary Judgment on the Administrative Record. Upon consideration of the pleadings,2 the
relevant legal authorities, and the record as it currently stands, the Court DENIES Plaintiff’s
Motion for Summary Judgment and GRANTS Defendants’ Cross-Motion for Summary
Judgment. The Court concludes that NPS did not violate the APA by reallocating the shuttle
service transportation events in a closed process among existing concessioners. The reallocation
1
Pursuant to Fed. R. Civ. P. 25(d), David Bernhardt is substituted in his official capacity as
Acting United States Secretary of the Interior.
2
The Court’s consideration has focused on the following documents:
• Pl.’s Mot. for Judgment on the Admin. Record (“Pl.’s Mot.”), ECF No. 23;
• Defs.’ Cross-Mot. for Summary Judgment and Opp’n to Pl.’s Mot. for Judgment on the
Admin. Record (“Defs.’ Mot.”), ECF No. 25;
• Pl.’s Response to Defs.’ Opp’n to Pl.’s Mot. for Summary Judgment and Pl.’s Opp’n to
Defs.’ Cross-Mot. for Summary Judgment (“Pl.’s Response”), ECF No. 27;
• Defs.’ Reply in Support of Cross-Mot. for Summary Judgment (“Defs.’ Reply”), ECF
No. 29.
In an exercise of its discretion, the Court finds that holding oral argument in this action would
not be of assistance in rendering a decision. See LCvR 7(f).
1
of these transportation events did not materially alter the existing concessioner’s contract;
accordingly, a public solicitation process was unnecessary. And, because it was permissible for
NPS to exclude Plaintiff and restrict the solicitation process to existing concessioners, Plaintiff
does not have standing to challenge the specific method by which NPS reallocated these
transportation events.
I. BACKGROUND
In 2013, NPS issued a Prospectus soliciting offers for concessioners to provide guided
interpretive oversnow vehicle tours in Yellowstone National Park. AR1. Twenty-three
concession contracts were awarded pursuant to the Prospectus, including ten contracts for the
South entrance of Yellowstone. AR10. Each contract allotted to the concessioner one or more
daily oversnow vehicle “transportation event.” Id.
Plaintiff had submitted proposals to obtain concession contracts for the South entrance as
Plaintiff had previously provided oversnow vehicle services in Yellowstone. However, Plaintiff
was not granted a contract. Instead, with respect to the South entrance contracts, NPS awarded
one contract to DTRS Jackson Hole, LLC dba Four Seasons Jackson Hole, seven contracts to
Forever Resorts, LLC dba Scenic Safaris, and two contracts to Teton Science Schools. AR170.
The contract awarded to Four seasons included two daily transportation events, including
one daily snowmobile event. AR356. In October 2014, Four Seasons requested that its contract
be terminated, so NPS terminated the contract. AR401. Various existing concessioners expressed
interest in obtaining the unused transportation events. AR402-08, AR444-45. Nevertheless, the
two transportation events remained unused for the 2014-2015 and 2015-2016 winter seasons.
AR421, AR429.
After hearing that NPS was assessing interest in the two unused transportation events,
Plaintiff contacted NPS regarding the transportation events in July 2016. AR475. Plaintiff was
2
told that no decision had been made and that “[w]e will add you to the list to be notified of any
future opportunities.” AR476.
In October 2016, NPS notified existing concessioners already holding contracts that it
had decided to reassign the two unused transportation events “on an experimental basis for one
season” and asked interested concessioners to participate in a lottery to reallocate the
transportation events. AR478-79. NPS advised concessioners that “[t]he events can be used for
one-way shuttle service to and from Old Faithful, for guided interpretive tours that included one-
way service to and from Old Faithful, or a combination of the two.” AR478. NPS also
announced that one of the events would be used for the West entrance rather than the South
entrance. AR479. As Plaintiff was not a current concessioner, Plaintiff did not receive a
notification of NPS’s decision to reallocate the unused transportation events.
In response, various concessioners requested that they be considered in awarding the
unused transportation events. AR482, AR519, AR525. The number of lottery entries was
determined by the number of contracts each concessioner already held. AR479. In November
2016, Scenic Safaris was selected through the lottery process to receive the unused transportation
event for the South entrance. AR532. The lottery process was apparently conducted by pulling
numbers out of a hat. AR530, AR532.
In December 2016, NPS issued an addendum to Scenic Safari’s operating plan to add one
transportation event for the 2016-2017 winter season. AR577-79. But, Scenic Safari was notified
that if NPS continued the experimental service, Scenic Safari would continue operating the
transportation event. AR576. The addendum stated that the transportation event was to be used
primarily for one-way shuttle services between the South entrance and Old Faithful. AR578.
3
In July 2017 and September 2017, Plaintiff contacted NPS regarding the unused
transportation events from the terminated Four Seasons contract. And in October 2017, NPS
contacted Plaintiff declining to award Plaintiff a concession contract. Compl., ECF No. 1, Dec.
of Frank Hubert Chapman II, ¶ 12.
In December 2017, Plaintiff filed this lawsuit challenging the method by which NPS
reallocated the unused transportation events from the terminated Four Seasons contract. See
generally Compl., ECF No. 1. Plaintiff moved for a Temporary Restraining Order, but the Court
declined to grant one. See generally Jan. 4, 2018 Order, ECF No. 9. The parties subsequently
moved for summary judgment.
II. LEGAL STANDARD
Under Rule 56(a) of the Federal Rules of Civil Procedure, “[t]he court shall grant
summary judgment if the movant shows that there is no genuine dispute as to any material fact
and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). However,
“when a party seeks review of agency action under the APA [before a district court], the district
judge sits as an appellate tribunal. The ‘entire case’ on review is a question of law.” Am.
Bioscience, Inc. v. Thompson, 269 F.3d 1077, 1083 (D.C. Cir. 2001). Accordingly, “the standard
set forth in Rule 56[ ] does not apply because of the limited role of a court in reviewing the
administrative record .... Summary judgment is [ ] the mechanism for deciding whether as a
matter of law the agency action is supported by the administrative record and is otherwise
consistent with the APA standard of review.” Southeast Conference v. Vilsack, 684 F. Supp. 2d
135, 142 (D.D.C. 2010).
The APA “sets forth the full extent of judicial authority to review executive agency
action for procedural correctness.” Fed. Commc’n Comm’n v. Fox Television Stations, Inc., 556
U.S. 502, 513 (2009). It requires courts to “hold unlawful and set aside agency action, findings,
4
and conclusions” that are “arbitrary, capricious, an abuse of discretion, or otherwise not in
accordance with law.” 5 U.S.C. § 706(2)(A). “This is a ‘narrow’ standard of review as courts
defer to the agency's expertise.” Ctr. for Food Safety v. Salazar, 898 F. Supp. 2d 130, 138
(D.D.C. 2012) (quoting Motor Vehicle Mfrs. Ass'n of U.S., Inc. v. State Farm Mut. Auto. Ins. Co.,
463 U.S. 29, 43 (1983)). However, an agency is still required to “examine the relevant data and
articulate a satisfactory explanation for its action including a rational connection between the
facts found and the choice made.” Motor Vehicle Mfrs. Ass'n, 463 U.S. at 43 (internal quotation
omitted). “Moreover, an agency cannot ‘fail[ ] to consider an important aspect of the problem’ or
‘offer[ ] an explanation for its decision that runs counter to the evidence’ before it.” Dist. Hosp.
Partners, L.P. v. Burwell, 786 F.3d 46, 57 (D.C. Cir. 2015) (quoting Motor Vehicle Mfrs. Ass'n,
463 U.S. at 43).
III. PROCESS FOR GRANTING INJUNCTIVE RELIEF
In its motion, Plaintiff asserts that it “seeks injunctive relief whereby NPS awards it a
concession contract for the unused transportation event at the South Entrance for which it was
affirmatively prevented from competing because of NPS’s restricted lottery approach.” Pl.’s
Mot., ECF No. 23, 13. Plaintiff alternatively “requests that NPS be enjoined from continuing the
‘experiment’ for the upcoming season at the South Entrance and for the remaining term of the
affected contract, and that NPS be directed to acquire the new services at the South Entrance
through the required public competition process such that Plaintiff has a fair opportunity to
compete.” Id. at 13-14. Plaintiff claims that the appropriate test for granting such relief is
whether it has established that it “will ‘succeed on the merits, that [it] is likely to suffer
irreparable harm in the absence of preliminary relief, that the balance of equities tips in [its]
favor, and that an injunction is in the public interest.’” Id. at 13 (quoting Winter v. Nat’l Res. Def.
Council, 555 U.S. 7, 20 (2008)).
5
Plaintiff has misstated the standard for granting injunctive relief at this stage in the
litigation. Plaintiff has filed a motion for summary judgment on the administrative record.
Despite this, Plaintiff organizes its motion for summary judgment around the standard for
granting a preliminary injunction. And, as Plaintiff has already been denied a temporary
restraining order and is now moving for summary judgment on the administrative record, this
case is well past its preliminary stage. See January 4, 2018 Order, ECF No. 9 (denying a
temporary restraining order). At the summary judgment stage, the question is no longer whether
or not “Plaintiff will succeed on the merits.” Pl.’s Mot., ECF No. 23, 14. At the summary
judgment stage, the question is whether or not Plaintiff has succeeded on the merits. And, only if
Plaintiff has succeeded on the merits will the Court determine whether or not injunctive relief is
warranted.
Accordingly, the Court will first decide whether or not Plaintiff prevails on its motion for
summary judgment on the administrative record. If Plaintiff prevails on its motion for summary
judgment, then the Court will assess whether or not Plaintiff is entitled to injunctive relief. And,
Plaintiff is entitled to injunctive relief only if Plaintiff shows “‘(1) that it has suffered an
irreparable injury; (2) that remedies available at law, such as monetary damages, are inadequate
to compensate for that injury; (3) that, considering the balance of hardships between the plaintiff
and defendant, a remedy in equity is warranted; and (4) that the public interest would not be
disserved by a permanent injunction.’” Morgan Drexen, Inc. v. Consumer Fin. Prot. Bureau, 785
F.3d 684, 694 (D.C. Cir. 2015) (quoting eBay Inc. v. MercExchange, LLC, 547 U.S. 388, 391
(2006)).
6
IV. NPS’S DECSION TO REALLOCATE THE TRANSPORTATION EVENT
THROUGH A CLOSED PROCESS
While the parties cite numerous interrelated statutes and regulations, the parties’ core
dispute is easily summarized: did NPS violate the APA when it reallocated the transportation
events associated with the terminated Four Seasons contract to other existing concessioners
without engaging in a public solicitation process?3 Plaintiff argues that NPS violated the APA
because the addition of a shuttle service transportation event was a major and material change to
the concessioner’s existing contract. Because the reallocation was a major and material change,
Plaintiff contends that NPS was required to offer the transportation event by public solicitation
rather than by amending existing contracts. Defendants disagree, arguing that the reallocation
was a minor adjustment to the concessioner’s contract so that NPS was permitted to make the
reallocation as it deemed appropriate without engaging in a new, public solicitation process.
For reasons that will be explained further below, the Court agrees with Defendants and
concludes that NPS’s failure to hold a public solicitation process to reallocate the transportation
events associated with the terminated Four Seasons contract did not violate the APA.
NPS was authorized to reallocate the unused transportation events resulting from the
termination of the Four Seasons contract by allocating those events to concessioners with
existing contracts. The contracts at issue are subject to the terms of the National Park Service
Concessions Management Improvement Act of 1998 (“the 1998 Act”) and its implementing
3
Initially, Plaintiff also appeared to challenge NPS’s transferring of one transportation event
from the South entrance of Yellowstone to the West entrance as part of the reallocation of the
terminated Four Seasons contract. But, Plaintiff does not address this issue in its motion and
appears no longer to challenge the transfer. See Pl.’s Mot., ECF No. 23, 13 (“Plaintiff seeks only
an award of a contract for the remaining event at the South Entrance.”). Moreover, the Court
finds that the transfer of the transportation event to the West entrance was permissible under
regulation as a limited change involving only one transportation event. See 36 C.F.R. §
7.13(l)(10)(xiii) (allowing “limited changes to the transportation events allocated to each
entrance”).
7
regulations. 16 U.S.C. § 5951 et seq. (1988 Act); 36 C.F.R. Part 51 (regulations). Under
regulations issued pursuant to the 1998 Act, “[a] concessioner that is allocated park area
entrance, user days or similar resource use allocations for the purposes of a concession contract
will not obtain any contractual or other rights to continuation of a particular allocation level
pursuant to the terms of a concession contract or otherwise. Such allocations will be made,
withdrawn and/or adjusted by the Director from time to time in furtherance of the purposes of
this part.” 36 C.F.R. § 51.76.
In interpreting this regulation, the Court finds that a transportation event is the type of
“park area entrance, user day[], or similar resource use allocation[]” that NPS is permitted to
make, withdraw, or adjust. Accordingly, when NPS “adjusted” an existing concessioner’s
contract to include an additional shuttle service transportation event, NPS was operating within
the bounds of its operating regulations.
Despite the Court’s finding that it was permissible for NPS to adjust an existing
concessioner’s contract by reallocating a transportation event, Plaintiff has three arguments for
why the Court should not grant Defendants’ motion for summary judgment. First, Plaintiff
argues that the addition of the shuttle service transportation event was a new visitor service
requiring a public solicitation process. Second, Plaintiff contends that NPS failed to consider the
necessary criteria in amending an existing concessioner’s contract to include the new
transportation event. Third, Plaintiff argues that there are material disputes of fact not resolved
by the Administrative Record. The Court will address each argument in turn.
First, Plaintiff argues that shuttle service transportation event was a new visitor service
requiring a public solicitation process. According to Plaintiff, treating the reallocation of the
shuttle service as an amendment to an existing contract “implies that NPS could simply define
8
any action as ‘reallocations’ and avoid having to go through the required public solicitation
process for visitor service requirements.” Pl.’s Mot., ECF No. 23, 16.
The Court disagrees. NPS is prohibited from including “a provision in a concession
contract … [which] provide[s] new or additional visitor services under the terms of a concession
contract.” 36 C.F.R. § 51.76. But, here, the addition of the shuttle service transportation event
was not a “new or additional visitor service.” 36 C.F.R. § 51.76. The existing concessioners were
already contracted to provide transportation events in the form of guided interpretive oversnow
vehicle tours from the South entrance of Yellowstone. AR190. NPS amended an existing
concessioner’s contract to include an additional transportation event in the form of a one-way
shuttle service between Old Faithful and the South Entrance of Yellowstone. AR748. Due to the
similarity between the shuttle service and the oversnow vehicle services that the concessioner
was already contracted to provide, the shuttle service was not a new visitor service. Instead, the
Court finds that the reallocation of the shuttle service transportation event was a permissible
adjustment to an existing concessioner’s contract.
Supporting the Court’s conclusion that the shuttle service was not a new service, shuttle
service transportation events were contemplated in the existing concessioners’ original
Prospectus. The Prospectus stated, “[i]n addition to the required services presented above, the
Concessioner will have discretion to provide services authorized in the Draft Contract. Exhibit
12-B is a summary of authorized services.” AR28. Exhibit 12-B lists “Guided OSV Shuttle
Trips” as an authorized service. Id. “Guided OSV Shuttle Trips” were also included in the Draft
Contract contained in the Prospectus and in the contracts actually awarded. AR71, AR261.
Accordingly, as shuttle services were included in the Prospectus, the Draft Contract, and the
actually-awarded contracts, shuttle services were not a new visitor service.
9
Plaintiff counters that the shuttle services were a new service because “Guided OSV
shuttle trips” were an authorized service rather than a required service. AR 28. But, Plaintiff fails
to explain why being an authorized service, as opposed to a required service, would make the
shuttle services a new service. Additionally, Plaintiff argues that the shuttle services were a new
service because shuttle services had previously been performed by a different concessioner under
a different contract. AR444. But, again Plaintiff fails to explain why the fact that a different
concessioner previously performed shuttle services makes shuttle services a “new” service under
the relevant concessioner’s contract.
For these reasons, the Court concludes that the shuttle service transportation event was
not a new visitor service. Accordingly, NPS acted permissibly in amending an existing
concessioner’s contract to include the shuttle service transportation event.
But, even if the Court were to agree with Plaintiff and conclude that the addition of the
shuttle service transportation event was a new visitor service, NPS’s actions in holding a closed
solicitation process would still be permissible. Under the 1988 Act’s regulations, NPS is required
to engage in a new, public solicitation process when an additional service would “materially
amends[]” a prospectus and the contract based on that prospectus or when an addition “does not
incorporate the terms and conditions of the concession contract as set forth in the prospectus.” 36
C.F.R. § 51.19. 4 However, “[a] concession contract may be amended to authorize the
concessioner to provide minor additional visitor services that are a reasonable extension of the
existing services.” 36 C.F.R. § 51.76.
4
The Court notes that 36 C.F.R. § 51.19 applies to the awarding of concession contracts. As the
Court concludes that the reallocation of the shuttle service transportation event was an
amendment to the concessioner’s contract rather than an award of a new contract, 36 C.F.R. §
51.19 would not apply to the actions taken by NPS.
10
Insofar as the shuttle service is considered a new service, the Court finds that it is a minor
additional service and a reasonable extension of the oversnow vehicle tours which were already
being provided. 36 C.F.R. § 51.76. Similarly, the addition of this new service did not materially
amend the contract of the existing concessioner as the concessioner was already required to
provide oversnow vehicle services. 36 C.F.R. § 51.19. Accordingly, NPS was authorized to
amend existing contracts to include this minor additional service rather than hold a public
solicitation process.
The Court’s conclusion that the addition of the shuttle service transportation event was
not a material change is supported by the regulatory definition of “transportation event.” The
applicable regulation defines “transportation event” as “a snowmobile transportation event or a
snowcoach transportation event.” 36 C.F.R. § 7.13(l)(2). These events are in turn defined by the
number of snowmobiles or snowcoaches travelling together. Id. Accordingly, the defining
characteristic of a “transportation event” is not its purpose but is instead the number of
snowmobiles or snowcoaches traveling together at a given time. Under this definition of
“transportation event,” the difference between an interpretive tour and a shuttle service is
immaterial. Accordingly, amending an existing concessioner’s contract for interpretive tours to
also include a shuttle service was a reasonable extension of the transportation events already
offered under the contract.
The Court also notes that the original Prospectus explicitly advised concessioners that
underused transportation events could be reallocated. See AR16 (“The Service reserves the right
to reallocate consistently underused transportation events from the Concessioner to other
Concessioners.”), AR30 (same), AR97 (“The Service may take consistently underused allocated
transportation events from the Concessioner based on a seasonal or multi-seasonal average use.
11
These allocations would revert back to the Service and may be allocated to other concessioners
within the same entrance.”). The transportation events at issue here were underused as they had
not been used during the 2014-2015 or the 2015-2016 winter seasons. AR 421, AR 429. That
existing concessioners were on notice that these underused transportation events could be
redistributed to them supports the Court’s finding that the reallocation of the transportation
events was not a material change but was instead a “minor additional visitor service[] that [was]
a reasonable extension of the existing services.” 36 C.F.R. § 51.76; see AT&T Commc’ns v.
Wiltel, Inc., 1 F.3d 1201, 1207 (Fed. Cir. 1993) (explaining in the context of procurement
contracts that a change is within the scope of the original contract if “the solicitation for the
original contract adequately advised offerors of the potential for the type of changes during the
course of the contract that in fact occurred … [and if] the modification is of a nature which
potential offerors would reasonably have anticipated” (internal quotation marks omitted)).
For the foregoing reasons, the Court concludes that, even if the shuttle service
transportation event was a new service, its addition was a permissible minor amendment to the
existing concessioner’s contract rather than a material change requiring a public solicitation
process.
Second, Plaintiff also argues that the Court should not grant Defendants’ cross-motion for
summary judgment because NPS violated the 1988 Act by reallocating the shuttle service
transportation event without considering “the facilities, services, or capital investment required
to be provided by the concessioner, and measures necessary to ensure the protection,
conservation, and preservation of resources of the national park.” Pl.’s Mot., ECF No. 23, 18
(citing 54 U.S.C. § 101913 and 36 C.F.R. § 51.17). Plaintiff similarly faults NPS for failing to
consider the franchise fee. But, the legal authorities to which Plaintiff cites are relevant only if
12
NPS were awarding a new concession contract. See 54 U.S.C. § 101913 (entitled “Award of
concession contracts”); 36 C.F.R. § 51.17 (in Subpart C- Solicitation, Selection and Award
Procedures). And, the Court has already determined that NPS was not awarding a new
concession contract and was instead only amending an existing concession contract.
Accordingly, NPS was not required to consider the criteria asserted by Plaintiff in reallocating
the shuttle service transportation event to an existing concessioner.
Third, Plaintiff argues that Defendants are not entitled to summary judgment because
“Defendant’s arguments are based on material facts that are in dispute and that are not
established by the Administrative Record.” Pl.’s Response, ECF No. 27, 3-5. Plaintiff
specifically claims that two documents central to Defendants’ arguments are not contained in the
Administrative Record. First, Plaintiff asserts that the Administrative Record is missing the
actual contract amendment by which the existing concessioner’s contract was modified to add
the shuttle service transportation event. Second, Plaintiff contends that Defendants have no
documentation regarding whether or not NPS extended the shuttle services for only one season
or for the remainder of the concession contract through 2024. Despite Plaintiff’s arguments, the
Court concludes that materials facts are not omitted from the Administrative Record so as to
preclude granting Defendants summary judgment.
First, Plaintiff is correct that the Administrative Record does not contain the actual
contract amendment reallocating the transportation event to the existing concessioner’s contract.
But, the Administrative Record does contain a draft of that amendment which is the latest
version in NPS’s possession. Defs.’ Reply, ECF No. 29, 2; AR577-79. Plaintiff provides no
argument as to why the draft amendment is insufficient nor does Plaintiff identify any parts of
the draft amendment which it believes were altered in the final contract. Plaintiff’s mere
13
speculation that there may have been some difference is not sufficient to defeat Defendants’
motion for summary judgment. See Brown v. Brody, 199 F.3d 446, 458-59 (D.C. Cir. 1999)
(explaining that speculation is insufficient to avoid summary judgment).
Second, the omission of documents concerning whether or not NPS extended the shuttle
services for the remainder of the concession contract similarly does not preclude summary
judgment. In this lawsuit, Plaintiff challenges NPS’s modification of the existing concessioner’s
contract to add a transportation event which was reallocated from another concessioner’s
terminated contract. This agency action occurred in 2016. What NPS subsequently did with that
transportation event in future seasons is not challenged in this lawsuit. Accordingly,
documentation on the use of the transportation event in future seasons is not necessary to decide
the parties’ motions for summary judgment and need not have been included in the
Administrative Record. See Theodore Roosevelt Conservation P’ship v. Salazar, 616 F.3d 497,
515 (D.C. Cir. 2010) (explaining that an administrative record need not include documents the
agency did not consider in taking the challenged action).
Plaintiff has failed to provide the Court with any material facts that are in dispute due to
omissions from the Administrative Record. Accordingly, the Court will not deny Defendants’
motion for summary judgment on this ground.
In summary, the Court concludes that NPS did not violate the APA by amending an
existing concessioner’s contract to include the shuttle service transportation event as the
reallocation was a permissible adjustment to the contract. And, even if the shuttle service
transportation event were considered a new service, the reallocation was minor and did not
materially amend the existing contract. Accordingly, NPS was not required to hold a public
solicitation process.
14
V. NPS’S DECISION TO USE A BLIND LOTTERY AMONG EXISTING
CONCESSIONERS
For the reasons already given, the Court concludes that NPS did not violate the APA in
using a closed process to reallocate the shuttle service transportation event. And, because NPS
was permitted to use a closed process, which excluded Plaintiff, to reallocate the transportation
event, the Court finds that Plaintiff lacks standing to challenge the particular method by which
NPS reallocated the transportation events among the existing concessioners.
To establish standing, a plaintiff must show (1) that it has suffered an “injury in fact” that
is (2) “caused by the challenged conduct” and which (3) is “redressable through relief sought
from the court.” Safari Club Int’l v. Jewell, 842 F.3d 1280, 1285 (D.C. Cir. 2016) (internal
quotation marks omitted). Here, Plaintiff’s theory of standing is based on the argument that
Plaintiff was deprived of the right to participate in a legally valid process for reallocating the
shuttle service transportation events. See Pl.’s Mot., ECF No. 23, 13 (“A disappointed offeror,
such as Plaintiff has the right to a legally valid procurement process, the deprivation of which
constitutes a cognizable injury.” (internal quotation marks omitted)). Plaintiff’s asserted
deprivation of the right to participate in a legally valid process gave Plaintiff standing to
challenge NPS’s use of a non-public solicitation to reallocate the shuttle service transportation
event.
But, the Court has now concluded that NPS’s decision to limit the reallocation process to
existing concessioners, rather than to expand the process to the general public, was permissible.
Accordingly, Plaintiff, not an existing concessioner, was not legally entitled to participate in the
reallocation process. Because Plaintiff was not legally entitled to participate in the reallocation
process, Plaintiff has no interest in how that non-public process was conducted. See Pl.’s
Response, ECF No. 27, 10 (“Plaintiff … is not challenging whether Lottery was fair to the
15
existing concessioners.”). Accordingly, Plaintiff lacks standing to challenge the method by which
NPS redistributed the transportation events among the existing concessioners in the permissible
closed process. See Cheeks of N. Am., Inc. v. Fort Myer Const. Corp., 807 F. Supp. 2d 77, 92
(D.D.C. 2011) (explaining that an unsuccessful bidder lacked standing to bring suit when its
failure to obtain a contract was not caused by the alleged violation).
Plaintiff argues that there are material facts in dispute as to whether or not Plaintiff has
standing to challenge the NPS action. Specifically, Plaintiff contends that the Administrative
Record contains no documentation that supports the contention that Plaintiff was properly
excluded from the original 2014 competition. See Pl.’s Response, ECF No. 27, 4-5. But, Plaintiff
misunderstands the issue. Plaintiff challenges NPS’s 2016 decision to reallocate the unused
transportation event among existing concessioners in a closed process. Plaintiff does not
challenge NPS’s 2014 refusal to grant Plaintiff a contract in the original, public competition.
Accordingly, documentation relating to Plaintiff’s failure to obtain a contract during the original
2014 competition is not relevant to the Court’s standing analysis.
Because Plaintiff lacks standing to challenge the method by which NPS redistributed the
shuttle service transportation event among the existing concessioners, the Court will not decide
whether or not NPS’s process was permissible. However, the Court notes that it is skeptical that
NPS’s chosen process violated the APA. Many existing concessioners were interested in
obtaining the two available transportation events. AR404-08, AR412, AR420, AR444-45. And
the use of a lottery was a simple, fair, and easy method of reallocating the transportation events
among the existing concessioners. See AR478. There is no evidence that NPS’s chosen method
was arbitrary, capricious, or in violation of existing law.
16
The Court has already decided that NPS’s actions in reallocating the shuttle service
transportation event in a closed process among existing concessioners did not violate the APA.
And, Plaintiff lacks standing to challenge the particular method used to reallocate the
transportation events among existing concessioners in the closed process. Accordingly, Plaintiff
has not shown a violation of the APA and the Court GRANTS Defendants’ motion for summary
judgment and DENIES Plaintiff’s motion for summary judgment.
VI. REQUEST FOR INJUNCTIVE RELIEF
Because Plaintiff did not prevail on its motion for summary judgment, Plaintiff is not
entitled to its requested relief, including injunctive relief. As previously explained, Plaintiff seeks
“injunctive relief whereby NPS awards it a concession contract for the unused transportation
event at the South Entrance,” or in the alternative, injunctive relief requiring NPS “to acquire
new services at the South Entrance through the required public competition process such that
Plaintiff has a fair opportunity to compete.” Pl.’s Mot., ECF No. 23, 13-14. Even if Plaintiff had
prevailed on the merits of its motion for summary judgment, the Court would not have exercised
its discretion to grant Plaintiff this injunctive relief.
An “injunction is a matter of equitable discretion; it does not follow from success on the
merits as a matter of course.” Winter, 555 U.S. at 32. In determining whether or not to exercise
its discretion to grant injunctive relief, a court considers if a plaintiff has shown “‘(1) that it has
suffered an irreparable injury; (2) that remedies available at law, such as monetary damages, are
inadequate to compensate for that injury; (3) that, considering the balance of hardships between
the plaintiff and defendant, a remedy in equity is warranted; and (4) that the public interest
would not be disserved by a permanent injunction.’” Morgan Drexen, Inc., 785 F.3d at 694
(quoting eBay Inc., 547 U.S. at 391). In circumstances such as this, courts often “withhold[]
judicial interjection unless it clearly appears that the case calls for an assertion of an overriding
17
public interest in having agencies follow the regulations which control government contracting.”
M. Steinthal & Co., Inc. v. Seamans, 455 F.2d 1289, 1300 (D.C. Cir. 1970) (internal quotation
marks omitted) (discussing the government procurement process).
Here, even if Plaintiff had prevailed on the merits of its motion for summary judgment,
the Court would not have exercised its discretion to grant Plaintiff’s requests for injunctive relief.
Injunctive relief is not warranted in this case for two primary reasons. First, Plaintiff has not
established that it has been irreparably harmed. Second, Plaintiff has not adequately
demonstrated that the balance of equities and the public interest weigh in favor of injunctive
relief.
First, Plaintiff has not demonstrated that it has been irreparably harmed. In its summary
judgment briefing, Plaintiff’s arguments in support of irreparable harm are almost identical to
those arguments put forth in Plaintiff’s Application for a Temporary Restraining Order. ECF No.
2, 10-12. In the Court’s Memorandum Opinion denying Plaintiff a temporary restraining order,
the Court explained that it was “unable to ascertain the economic impact on Plaintiff’s business
in any meaningful way at all because—absent quoting the amount of revenue it could allegedly
receive based on rates set forth in NPS’s prospectus—Plaintiff has provided the Court with no
evidence on this issue.” ECF No. 10, 12. In its current briefing, this issue persists. Plaintiff has
submitted no new evidence establishing irreparable harm, and Plaintiff’s references to general
financial loss are not sufficient to establish irreparable harm. See Vencor Nursing L.P. v. Shalala,
63 F. Supp. 2d 1, 13 (D.D.C. 1999) (explaining that “monetary loss is usually accorded little or
no weight in the irreparable-harm analysis”). Plaintiff’s claim of irreparable harm is further
weakened by the fact that Plaintiff has continued to operate without the right to the transportation
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events in question since at least 2014. The Court will not grant injunctive relief on the mere
speculation of irreparable harm.
Moreover, it is not at all obvious that granting injunctive relief would cure Plaintiff’s
alleged irreparable harm. Plaintiff offers no support for its assumption that it would receive a
contract for the unused transportation events through a public solicitation process. This is
especially true as Plaintiff was not “next in line” for any of the original contracts awarded in
2014. Jan. 4, 2018 Memorandum Opinion, ECF No. 10, 13.
In addition to its failure to establish irreparable harm, Plaintiff also fails to demonstrate
that the balance of the equities and the public interest weigh in favor of injunctive relief. Even if
Plaintiff were to have prevailed on the merits, Defendants had at least a reasonable basis in law
for restricting the reallocation of the unused transportation events to existing concessioners. See
M. Steinthal, 455 F.2d at 1301 (restricting the court’s analysis to “whether the … agency’s
decision had a reasonable basis” when an unchosen bidder for a government contract sought an
injunction). Additionally, granting Plaintiff’s request for injunctive relief could harm those
concessioners who are currently providing shuttle services under their contracts. And, if the
Court were to order NPS to award the shuttle service transportation event to Plaintiff, other
interested bidders who also submitted proposals in the original 2014 public solicitation process
would be injured due to their inability to participate. Moreover, removing the shuttle service
transportation event from the existing concessioner risks creating a disruption in services for the
public. And, Plaintiff has cited nothing which would lead the Court to find that the current
concessioner’s services are inadequate or otherwise against the public’s interest.
Based on Plaintiff’s failure to prove irreparable harm and that the balance of the equities
and the public interest weigh in favor of granting injunctive relief, the Court would not exercise
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its discretion to grant such relief even if Plaintiff had prevailed on its motion for summary
judgment.
VII. CONCLUSION
For the foregoing reasons, Plaintiff’s Motion for Summary Judgment is DENIED, and
Defendants’ Cross-Motion for Summary Judgment is GRANTED. It was permissible under the
APA for NPS to reallocate the shuttle service transportation event through contract amendment in
a closed solicitation process. Because it was permissible for NPS to limit its solicitation process
to existing concessioners, Plaintiff does not have standing to challenge the specific method by
which NPS chose between existing concessioners. As Plaintiff has not prevailed in this lawsuit, it
is not entitled to any relief, including injunctive relief. An appropriate Order accompanies this
Memorandum Opinion.
/s/
COLLEEN KOLLAR-KOTELLY
United States District Judge
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