City of Albuquerque v. United States Department of the InteriorCity of Albuquerque v. United States Department of the Interior
BACKGROUND
The City of Albuquerque (“the City”) appeals the district court’s order granting defendant the United States Department of the Interior’s (“Interior”) motion to dismiss. The district court dismissed the complaint under
The heart of this dispute is a 2001 Solicitation for Offers issued by Interior for the provision of office space to house the Office of the Special Trustee for American Indians. According to the City’s complaint, throughout the site selection process the City contacted Interior and rec
Upon learning of Interior’s selected site, the City filed a complaint in the United States District Court for the District of New Mexico. The complaint “challenges the procedures [Interior] used in reaching a final agency decision with respect to the site selection.” Specifically, the City alleges Interior’s selection process violated Executive Order 12,072 and its accompanying regulations.
See
Exec. Order No. 12,072, 43 Fed.Reg. 36,869 (Aug. 16, 1978);
Executive Order 12,072 provides “[e]x-cept where such selection is otherwise prohibited, the process for meeting Federal space needs in urban areas shall give first consideration to centralized community business area and adjacent areas of similar character, including other specific areas which may be recommended by local officials.” Exec. Order No. 12,072 § 1-103. Similarly, the associated regulations instruct “[i]n meeting space needs in urban areas ... [fjirst consideration shall be given to a centralized business area and adjacent areas of similar character.”
The City alleges Interior violated the Executive Order and associated regulations through several actions during the selection process. First, the City alleges Interior “disqualified the only offer that involved construction within the Central Business Area of the City of Albuquerque ... based on criteria not expressed in the Solicitation and not affecting the suitability of the site. [Interior] later announced that it was rescinding that disqualification.” Second, the City alleges Interior “refused to consider available property recommended by local officials.” Third, the City alleges the costs for a site within the centralized business area were comparable to the costs of the site Interior selected outside the area. Finally, the City criticizes Interior for “us[ing] a lack of open space as a basis for rejecting a site [within the centralized business area]” thereby giving “preference to suburban locations over [centralized business area locations].” In sum, the City believes Interior preferred a site outside the centralized business area and impermissibly manipulated the selection process to select that site.
In response to the City’s complaint, Interior filed a motion to dismiss, arguing the district court lacked subject matter jurisdiction to hear the case. Interior asserted the City’s complaint amounted to nothing more than a bid protest which, under the Administrative Dispute Resolution Act, must be brought in the United States Court of Federal Claims rather than federal district court.
See
After allowing the City to respond to Interior’s motion, the district court granted Interior’s motion to dismiss, determining it did not have subject matter jurisdiction to adjudicate bid protests under either the Administrative Dispute Resolution Act or the Administrative Procedure Act.
Albuquerque,
DISCUSSION
On appeal, the City challenges the district court’s dismissal of the City’s claim
In response, Interior urges us to affirm the district court’s decision to dismiss the complaint because the court lacks subject matter jurisdiction. Interior further asserts the City’s appeal must fail because the City has no standing under the Administrative Procedure Act. Lastly, Interior argues the City’s action is moot.
For the reasons stated below, we agree with the City the district court erred in concluding it lacked subject matter jurisdiction in this case. We also conclude Interior’s standing arguments and mootness arguments are unpersuasive. Therefore, we reverse and remand for further proceedings consistent with this opinion.
A. Subject Matter Jurisdiction
We begin by examining whether the district court has subject matter jurisdiction. We review the district court’s determination on this issue de novo.
U S West Inc. v. Tristani,
The City’s complaint alleges the district court “has jurisdiction over this cause of action under [the Administrative Procedure Act,]
The Supreme Court, however, has instructed us “the [Administrative Procedure Act] is not to be interpreted as an implied grant of subject-matter jurisdiction to review agency actions.”
Califano v. Sanders,
We begin with the general federal question statute,
In search of a waiver of sovereign immunity, we return to the Administrative Procedure Act. It “contains a limited waiver of the United States’ sovereign immunity.” Id. The relevant section states:
A person suffering legal wrong because of agency action ... is entitled to judicial review thereof. An action ... seeking relief other than money damages ... shall not be dismissed ... on the ground that it is against the United States.
According to Interior, the other waiver of sovereign immunity at issue in this case is the Tucker Act, as amended by the Administrative Dispute Resolution Act.
See
The thrust of Interior’s argument is “[i]n granting express, concurrent protest jurisdiction to the district courts, the [Administrative Dispute Resolution Act] also took away the historical basis for district court protest jurisdiction under
[Scanwell Laboratories, Inc. v. Shaffer
],
In the early twentieth century, parties upset with the federal government’s contract procurement process or award of a contract had no judicial recourse. In
Per
Lukens Steel’s
holding prevailed until 1970 when the District of Columbia Circuit employed the Administrative Procedure Act to justify departing from
Lukens Steel. See Scanwell Labs.,
While some parties were pursuing relief in federal district court, many disappointed bidders sought recourse in the Court of Federal Claims and its predecessor courts
2
under the Tucker Act.
See, e.g., United States v. John C. Grimberg Co.,
With this history as backdrop, Congress enacted the Administrative Dispute Resolution Act.
See
Administrative Dispute Resolution Act of 1996, Pub.L. No. 104-320, 110 Stat. 3870, at 3874-75 (codified at
Because the Administrative Dispute Resolution Act did not specifically mention the
Scanwell
case in either the text of
In deciding
Because of the Federal Circuit’s “exclusive role in [cases brought under
We take the Federal Circuit’s reasoning one step further and conclude the Federal Dispute Resolution Act did not affect the district courts’ jurisdiction to hear cases that are not brought by an actual or potential bidder. Prior to the Act, the district court heard cases brought by non-bidders under
Furthermore, the legislative history of the Administrative Dispute Resolution Act does not lead .to the conclusion Congress intended to leave parties who were not actual or prospective bidders without a remedy. Interior has not provided, nor have we found, any piece of legislative history suggesting parties who had some avenue available to seek redress before the passage of the Administrative Dispute Resolution Act would be left without an avenue for relief after the Act became effective. In fact, the only portions of the legislative history that arguably address non-bidders refer only generally to
“Seanwell
jurisdiction.”
See Local 1482,
In sum, we conclude the Administrative Dispute Resolution Act did not affect the district court’s ability to hear cases challenging the government’s contract procurement process so long as the case is brought by someone other than an actual or potential bidder.
5
The district court retains subject matter jurisdiction over cases brought by non-bidders under
B. Standing
We next turn to Interior’s argument that the City lacks standing to bring this case. Although the district court did
1. Constitutional Standing
We look first to the constitutional standing requirements. Constitutional standing has three elements.
See Lujan v. Defenders of Wildlife,
On appeal, Interior argues the City has not suffered “the requisite concrete, particularized harm for which the court can provide a remedy.” To the extent the City’s complaint alleges only harm caused by an inappropriate selection process rather than harm caused by Interior’s failure to select a specific location, Interior argues the City’s injury is only conjectural rather than concrete and particularized. The City argues this case is distinguishable from other cases brought by cities based on Executive Order 12,072, because in those cases the federal agency “moved existing offices within the [central business area] to suburbs outside of the city limits.”
See City of Reading, Jane D. v. Social Security Admin.,
Civ. A. No. 87-1867,
We conclude the City’s complaint has alleged sufficient facts to establish constitutional standing. “At the pleading stage, general factual allegation of injury resulting from the defendant’s conduct may suffice, for on a motion to dismiss we presume that general allegations embrace those specific facts that are necessary to support the claim.”
Defenders of Wildlife,
We also reject Interior’s suggestion the City lacks standing because once other federal agencies filled the one central business area location that offered space to Interior, any harm to the City disappeared. The City’s alleged injury is not caused by Interior’s failure to select
a specific site
in the central business area. Rather it is based on Interior’s failure to select
any site
in the central business area. Although Interior faults the City’s complaint for not identifying other specific locations, the City’s complaint did allege “[t]he Department of Interior despite extensive contact from the City of Albuquerque refused to consider available property recommended by local officials within the [central business area].” The natural inference from this allegation is that available property exists within the City of Albuquerque’s central business area. Because the case is before us with only a complaint, we must presume that the allegations in the complaint are correct and the City will be able to prove specific facts to support the claim.
See Defenders of Wildlife,
2. Prudential Standing
In addition to its constitutional standing arguments, Interior contends the City does not meet the prudential standing requirements because it “is not within the ‘zone of interests’ of a statute supporting standing under the [Administrative Procedure Act].” In making this argument, Interior asserts neither the executive order nor the Federal Property and Administrative Services Act of 1949 (which the Executive Order was based on) evidences congressional intent to provide non-bidders a private right of action under the executive order.
We agree Executive Order 12,072 does not specifically create a cause of action or mention judicial review. However, “under certain circumstances, Executive Orders ... are treated as agency action and reviewed under the Administrative Procedure Act.”
City of Carmel-by-the-Sea v. United States Dep’t of Transp.,
a. Statutory Foundation
We begin with the requirement that the executive order be based on a specific statutory foundation. Executive Order 12,072 was issued under the “authority vested in [the] President of the United States of America by Section 205(a) of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 486(a)).” This Act gave the President power to “prescribe such policies and directives, not inconsistent with the provisions of this Act, as he shall deem necessary to effectuate the provisions of said Act, which policies and directive shall govern the Administrator and executive agencies in carrying out their respective functions.”
Interior suggests the Executive Order lacks sufficient statutory foundation because there is nothing in the language of the Federal Property and Administrative Services Act of 1949 that indicates a congressional intention to create enforceable rights in non-bidders. Further, Interior suggests the statutory foundation is insufficient because the Act does not contain “any directive addressing location of federal office space within the [central business area].”
Our review of the Federal Property and Administrative Services Act of 1949 convinces us the Act provides a sufficient statutory foundation for Executive Order 12,072. It is well established that Congress may delegate responsibility to the. executive branch so long as Congress provides an “intelligible principle” to guide the exercise of the power.
See J.W. Hampton, Jr. & Co. v. United States,
Interior suggests standing under the Administrative Procedure Act can only be provided through a statute itself rather than an executive order. In support of its position, Interior cites several cases holding federal employees did not have standing to sue under Office of Management and Budget Circular A-76.
See, e.g., Courtney v. Smith,
b. Availability of Judicial Review
We next consider whether the Federal Property and Administrative Services Act of 1949 or Executive Order 12,-072 preclude judicial review. Standing under the Administrative Procedure Act is not available if a statute precludes judicial review of the agency action.
See
In Part A of this opinion, we discussed the evolution of judicial review of the government procurement process. As we explained, the Administrative Procedure Act opened the door by granting plaintiff standing to challenge the government procurement process.
See Scanwell Labs.,
Interior argues it is “the City’s burden to show that Executive Order 12,-072 or any relevant statute ‘suggests a congressional intent to permit the plaintiffs suit.’ ” This argument misses the mark. The Supreme Court has clearly stated that under a prudential “zone of interests” inquiry, “there need be no indication of congressional purpose to benefit the would-be plaintiff.”
Clarke v. Sec. Indus. Ass'n,
Here, Interior argues we should infer a congressional intent to preclude review from language in Executive Order 13,006. Executive Order 13,006 was issued pursuant to the President’s authority under “the laws of the United States of America, including the National Historic Preservation Act (16 U.S.C. 470 et seq.) and the Public Buildings Cooperative Use Act of 1976 (90 Stat. 2505), and in furtherance of and consistent with Executive Order No. 12072.” Unlike Executive Order 12,072, Executive Order 13,006 specifically states it “is not intended to create, nor does it create, any right or benefit, substantive or procedural, enforceable at law by a party against the United States, its agencies or instrumen-talities, its officers or employees, or any other person.” We do not think the fact one executive order specifically states it does not create a private right of action leads to the conclusion another executive order lacking a similar provision also does not create a private right of action. Rather the fact some executive orders explicitly provide they do not create a private right of action suggests other executive orders may create a right of action.
In short, Interior has not cited, nor have we found, any persuasive evidence indicating executive orders issued under the Federal Property and Administrative Services Act of 1949 are unenforceable.
c. Law to Apply
Lastly, we consider whether there is any meaningful law to apply. Under the Administrative Procedure Act, judicial review is unavailable where “agency action is committed to agency discretion by law.”
Interior argues “[t]he Executive Order and regulations provide[] no fixed standard.” We disagree. The Executive Order provides that “[e]xcept where such selection is otherwise prohibited, the process for meeting Federal space needs in urban areas shall give first consideration to a centralized community business area and adjacent areas of similar character, including other specific areas which may be recommended by local officials.” Exec. Order No. 12,072 § 1-103. The Order instructs the Administrator of General Services to “develop programs to implement the policies of this Order” and to “[ijssue regulations, standards, and criteria for the selection, acquisition, and management of Federally owned and leased space.” Id. at § 1-201(b). In following this directive, the Administrator issued a plethora of regulations. Among other things, the regulations in effect at the time of the procurement process in this case required:
In meeting space needs in urban areas First consideration shall be given to a centralized business area and adjacent areas of similar character in the central city ..., including other specific areas of a city recommended by the elected chief executive officer of the local government or a designee, except where this type of consider is otherwise prohibited. Space needs will be met outside the central business area of a central city ... only when one of the following circumstances exist:
(i)The service area of an activity is limited to a clearly defined sector of a city or a suburban or rural community, as is the case with satellite or branch offices; or where onsite activities are involved, such as inspection and/or maintenance operations at border stations, airports, seaports, or other similar activities;
(ii) Immediate compliance is not possible due to existing leasing commitments in areas outside the central business area ... In these cases, plans for the future compliance shall be made; i.e., the activity shall be relocated to the central business area upon expiration of the lease;
(iii) The proposed facility or the activity’s use of a facility is not in compliance with local land use or zoning ordinances; or
(iv) The elected chief executive officer of the local government or a desig-nee advises the agency that an activity or facility should be located in an area of the central city other than the [central business area],
Interior argues new regulations “have replaced and give even greater discretion to agencies than the regulations” in effect at the time of the procurement process at issue here.
See
General Services Adminis
For the foregoing reasons, we think Executive Order 12,072 may be enforced under the Administrative Procedure Act. Having determined the Executive Order is enforceable in the courts, it is easy to conclude the City is within the zone of interests protected by the Executive Order. The Order itself explains: “Federal facilities and Federal use of space in urban areas shall serve to strengthen the Nation’s cities and to make them attractive places to live and work. Such Federal space shall conserve existing urban resources and encourage the development and redevelopment of cities.” Executive Order No. 12,072 § 1-101. The mandate of Executive Order 12,072 clearly encompasses the City’s challenge to Interior’s selection process and the purported injury resulting therefrom. As the City’s complaint states, the removal of Interior offices from Albuquerque’s central business area will injure the City “by weakening the City ... and discouraging development and redevelopment of the [central business area].” Because this injury is exactly the type of injury President Carter hoped to address with Executive Order 12,072, we conclude the City has standing to challenge Interior’s actions.
See H & F Enters.,
C. Mootness
Finally, we address Interior’s argument the City’s complaint must be dismissed because the City no longer has a legally cognizable interest in the outcome. Interior argues the City’s claim is moot because two other federal agencies have since filled “the only [central business area] site that the City identified as available for selection.” Interior asserts that since “the site the City really wanted Interior to build upon ... is no longer available and no other known site exists,” any alleged harm the City suffered can no longer be redressed.
The Supreme Court has held, under the “case or controversy” requirement in Article III of the Constitution, “federal courts are without power to decide ques
We conclude the City’s claim is not moot. In this ease, the parties disagree as to whether there is any available property within the central business area. As we explained in Part B of this opinion, Interi- or asserts there are no appropriate sites within the central business area, while the City’s complaint can reasonably be read as alleging there are several sites available. Accepting the City’s allegations as correct, if Interior issued a new solicitation of offers for its new space and followed the applicable executive order and regulations, it may very well select a site within the central business area. Thus, the City’s asserted injury related to the development and revitalization of this area could be remedied. We, therefore, conclude the City’s challenge is not moot.
CONCLUSION
Based on the preceding analysis we REVERSE and REMAND for further proceedings consistent with this opinion.
Notes
. In its jurisdictional statement, the City claims "[p]ursuant to
. Prior to 1992, the Court of Federal Claims was known as the United States Claims Court. See Federal Courts Administration Act of 1992, Pub.L. No. 102-572, § 902(a), 106 Stat. 4506, 4516. Throughout this opinion, for simplicity's salte we refer to that court by its current name.
.
See also Novell, Inc. v. United States,
.
Iceland Steamship
did not mention
. We again emphasize this opinion expresses no view as to whether a bidder may bring a contract procurement-type suit in district court under Scanwell and the Administrative Procedure Act.
.This portion of the Act has recently been amended. Its current version, located in
. The current version is codified, at 40. U.S.C.
. Indeed, Interior does not argue Executive Order 12,072 goes beyond the scope of authority Congress delegated.
. The Federal Labor Relations Authority case further explained: "A Presidential order may have the force and effect of law when it is issued pursuant to statutory mandate or a delegation from Congress of lawmaking authority ..., but Circular A-76 was issued pursuant to no such authority."
Fed. Labor Relations Auth.,
. To the extent
Haltermann v. Johnson,
. Because the scope and effect of the current regulations are not before us, we make no attempt to ascertain the precise effect of these new regulations.
. Interior also urges us to affirm the district court’s ruling on the basis the "uncontrovert-ed record” shows Interior followed the new regulations. Suffice it to say the facts on this matter are not uncontroverted.