874 F.3d 1226
10th Cir.2017Background
- Fort Riley (Army) previously awarded full food-service (FFS) contracts to Kansas (the State SLA) under the Randolph‑Sheppard Act (RSA); the last RSA contract was to expire Feb 2016.
- The Army decided to procure only dining facility attendant (DFA) support services and solicited those under the Javits‑Wagner‑O’Day Act (JWOD), which would place DFA services on the AbilityOne procurement list and designate a nonprofit (Lakeview) via SourceAmerica.
- Kansas initiated RSA arbitration (20 U.S.C. §107d‑1(b)) and sued in district court seeking a preliminary injunction to stop the Army from awarding the JWOD contract pending arbitration; the district court granted the injunction.
- SourceAmerica and Lakeview intervened and appealed, arguing the Court of Federal Claims has exclusive Tucker Act jurisdiction and the district court lacked authority because Kansas had not exhausted RSA arbitration.
- While the appeal was pending, the RSA arbitration panel ruled for Kansas (finding Army violated RSA and the 2007 NDAA “no‑poaching” provision), prompting the court to address mootness and jurisdictional questions.
Issues
| Issue | Plaintiff's Argument | Defendant/Intervenors' Argument | Held |
|---|---|---|---|
| Mootness of interlocutory appeal after arbitration decision | Appeal not moot; falls within exception "capable of repetition yet evading review" because procurement cycles are short and likely to recur between same parties | Appeal moot because arbitration decision resolved the dispute and Kansas lacks a continued stake | Not moot: exception applies (procurement period short; reasonable expectation of recurrence) |
| Whether Court of Federal Claims (Tucker Act) has exclusive jurisdiction | Kansas framed claim as RSA violation and sought non‑monetary relief under APA/§1331; RSA arbitration preempts Tucker Act only after arbitration | Intervenors: bid protest => Tucker Act exclusive jurisdiction in Court of Federal Claims; district court lacked jurisdiction | Court of Federal Claims did not have exclusive jurisdiction because Kansas alleged an RSA violation that triggers RSA arbitration prior to Tucker Act jurisdiction vesting |
| Whether RSA arbitration requirement is jurisdictional (i.e., bars district court relief until exhausted) | RSA exhaustion is non‑jurisdictional; district courts can enjoin awards pending arbitration when exhaustion exceptions apply (irreparable harm) | Intervenors: RSA arbitration is mandatory and bars district court intervention until arbitration complete | RSA arbitration is not jurisdictional; district court may excuse exhaustion (irreparable‑harm exception applies) and properly issued the preliminary injunction |
| Whether district court abused discretion in granting preliminary injunction | Kansas sought to preserve status quo to prevent irreparable loss (loss of incumbent status that money cannot remedy due to sovereign immunity) | Intervenors argued district court should have deferred to arbitration and lacked authority | Court affirms district court had jurisdiction and did not address abuse‑of‑discretion merits because arbitration later vindicated Kansas (so injunction outcome mooted) |
Key Cases Cited
- Kingdomware Techs., Inc. v. United States, 136 S. Ct. 1969 (2016) (Supreme Court mootness and repetition‑evading‑review framework in procurement context)
- Kentucky v. United States ex rel. Hagel, 759 F.3d 588 (6th Cir. 2014) (RSA‑JWOD disputes; held exhaustion exception and non‑jurisdictional arbitration analysis supporting injunction pending arbitration)
- NISH v. Rumsfeld, 348 F.3d 1263 (10th Cir. 2003) (prior panel: RSA applies over JWOD for dining‑facility operation contracts)
- Kentucky, Education Cabinet, Dep’t for the Blind v. United States, 424 F.3d 1222 (Fed. Cir. 2005) (analyzed scope of RSA arbitration and treated RSA arbitration as mandatory administrative prerequisite in that case)
- Randolph‑Sheppard Vendors of Am. v. Weinberger, 795 F.2d 90 (D.C. Cir. 1986) (recognition that DOE/Secretary should interpret RSA first and arbitration is primary forum)