Lead Opinion
Opinion for the court filed by Circuit Judge WALLACH. Dissenting opinion filed by Circuit Judge STOLL.
Appellant United States (“Government”) appeals the decision of the United States Court of Federal Claims (“Claims Court”) finding that it possessed subject matter jurisdiction under the Tucker Act, 28 U.S.C. § 1491(b)(1) (2012), to resolve the instant action filed by Jay Hymas, doing business as Dosmen Farms. Hymas v. United States,
Background
Beginning in the 1970s, the Service entered into CFAs with farmers to manage public lands in the National Wildlife Refuge System for the conservation of migratory birds and wildlife, including at the
In the 1990s, the Service issued cropland management plans for the Umatilla and McNary Refuges. The plans call for “Tenure Arrangements” through which “[c]oo-perators are selected in accordance with Refuge manual guidelines ... and are issued á three year [CFA].” J.A. 81. “[CFAs] were normally intended to be multi-year agreements” because the Service determined that “[c]ooperators should be given a long-term interest in the stewardship of the soil.” J.A. 15 (internal quotation marks and citation omitted).
Mr. Hymas, through his business Dos-men Farms, sought to secure a CFA with the Service in 2013 and 2014. J.A. 165-72, 208-09. A resident of Kennewick, Washington, Mr. Hymas lived “approximately 7 miles as the crow flies” from the McNary Refuge and 23 miles from the Umatilla Refuge. J.A. 209. When Mr. Hymas expressed his intеrest in a CFA to the Service, he “indicated that he had not participated in a National Wildlife Refuge Cooperative Farming Program, nor was he a former landowner or tenant of acquired lands.” J.A. 209. According to the Service, Mr. Hymas “also indicated that he farmed the local vicinity but did not provide any location information to verify these activities.” J.Á. 209.
The Service considered Mr. Hymas, but ultimately selected other cooperators. In 2013, the Service awarded four CFAs with one-year terms and two CFAs with multi-year terms. See J.A. 173, 178, 183, 188 (CFAs with one-year term); J.A. 193, 198 (CFAs with multi-year terms). In 2014, the Service awarded four CFAs with mul-ti-year terms that covered the same parcels of land subject to the expired CFAs awarded in 2013. J.A. 212-27. The Service did not use formal procurement procedures or solicit full and open competition before it awarded the 2013 and 2014 CFAs; rather, it relied upon its priority selection system that gave preference to previous cooperators with a successful record of farming designated areas within the refuge. J.A. 165-72 (2013 selection decision memos); J.A. 204-11 (2014 selection decision memos). Because Mr. Hymas did not live adjacent to the refuges and had not previously farmed refuge lands, the
Mr. Hymas filed a bid protest in the Claims Court in April 2018, alleging that the Service violated various federal procurement laws and the APA by not soliciting “full and open” competition for the CFAs. Hymas,
the Service’s use of a non-competitive bidding process for the [CFAs] violated the [Competition in Contract Act (“the CICA”) ], 41 U.S.C. § 253(a) (now [41 U.S.C.] § 3301(a)) (Count I); the [Federal Grant and Cooperative Agreement Act (“the FGCAA”) ], 31 U.S.C. §§ 6303 and 6305 (Count II); and was arbitrary, capricious, an abuse of discretion, and contrary to law [under the APA] (Count III).
Id. at 482. Mr. Hymas filed a Motion for Judgment on the Administrative Record, and the Government filed a Motion to Dismiss for lack of subject matter jurisdiction and a Cross-Motion for Judgment upon the Administrative Record. Id
In July 2014, the Claims Court denied the Government’s motion to dismiss, finding that it had subject matter jurisdiction over Mr. Hymas’s claims. Id at 488-89. The Claims Court held that the CICA, rather than the FGCAA, contains the operative definition of “procurement” for purposes of determining jurisdiction under the Tucker Act. Id at 487. The Claims Court applied the CICA definition to the facts of the case and held that, because the Service used the CFAs at issue “to obtain the services of farmer-cooperators to feed migratory birds and wildlife on the Refuges,” that activity amounted to “a proсurement,” such that it had Tucker Act jurisdiction to entertain Mr. Hymas’s challenge. Id at 486.
Turning to the merits, the Claims Court determined that the Service violated the CICA by not using formal procurement procedures to obtain full and open competition. Id at 496. The Claims Court found that neither the Fish and Wildlife Coordination Act of 1958 (“the 1958 Act”), Pub.L. No. 85-624, 72 Stat. 563 (1958) (codified as amended at 16 U.S.C. §§ 661— 664 (2012)), nor the National Wildlife Refuge System Administration Act, Pub.L. No. 89-669, 80 Stat. 926 (1966) (codified as amended at 16 U.S.C. § 668dd(h)) (“the 1966 Act”), nor the National Wildlife Refuge System Volunteer and Community Partnership Enhancement Act of 1998, Pub.L. No. 105-242, 112 Stat. 1574 (1998) (codified as amended at 16 U.S.C. §§ 742a, 742f) (“the 1998 Act”) authorize the Service to enter into cooperative agreements like the CFAs or exempt the Service from complying with the CICA. Id at 498-500. It also held that the Service’s priority selection system violated the FGCAA. Id at 500. Consequently, the Claims Court permanently enjoined the Service “from entering into any [CFAs] or other contractual vehicles concerning the McNary and Umatilla National Wildlife Refuges for the 2015 farming season or thereafter, unless and until the selection process and award[s] comply with the CICA, FGCAA, and the APA.” Id at 508. It also ordered the Service to “terminate” the six multi-year CFAs awarded in 2013 and 2014 “at the conclusion of the 2014 farming season.” Id at 509. The Claims Court entered judgment accordingly. J.A. 7.
The Government timely appealed that judgment. We have subject matter jurisdiction pursuant to 28 U.S.C. § 1295(a)(3) (2012).
Discussion
I. Standard of Review
“[A] federal court [must] satisfy itself of its jurisdiction over the subject
II. The Claims Court Lacked Subject Matter Jurisdiction
“[T]he United States, as sovereign, ‘is immune from suit save as it consents to be sued ... and the terms of its consent to be sued in any court dеfine that court’s jurisdiction to entertain the suit.’ ” United States v. Testan,
on an action by an interested party objecting to a solicitation by a Federal agency for bids or proposals for a proposed contract or to a proposed award or the award of a contract or any alleged violation of statute or regulation in connection with a procurement or a proposed procurement.
28 U.S.C. § 1491(b)(1) (emphasis added). Commonly known as “bid protest jurisdiction,” this court has found that this provision speaks “exclusively ” to “procurement solicitations and contracts.” Res. Conservation Grp., LLC v. United States,
As is occasionally necessary in deciding the parameters of bid protest jurisdiction, we must answer certain foundational questions that necessarily will impart whether the court has jurisdiction over the issues raised. See, e.g., Mudge v. United States,
A. The Service Properly Interpreted the Relevant Statutes to Authorize the use of CFAs
We first must address whether the Service properly interpreted the relevant statutes as authorizing it to negotiate cooperative agreements of the type represented by the CFAs. We review an agency’s statutory interpretation using the two-pronged framework established by Chevron, U.S.A., Inc. v. Natural Resources Defense Council, Inc.,
The Claims Court held that the 1958, 1966, and 1998 Acts do not exempt the CFAs from what the CICA demands. Hymas,
1. The Service Permissibly Construed the 1958 Act
In 1934, Congress passed' An Act to Promote the Conservation of Wild Life, Fish, and Game, and for other Purposes, which authorized the Service “to provide expert assistance to and to cooperate with Federal, State, and other agencies in ... increasing the supply of game and fur-bearing animals and fish, in combating diseases, and in developing a Nation-wide program of wild-life conservation and rehabilitation.”
Because Congress did not define the phrase “public or private agencies and organizations” in the 1946 Act, the Service invoked the express rulemaking authority of that Act in 1960, promulgating a regulation allowing the Service to enter into cooperative agreements on a refuge with any “person”:
Cooperative agreements with persons for crop cultivation, haying, grazing, or the harvest of vegetative products, including plantlife, growing with or without cultivation on wildlife refuge areas may be executed on a share-in-kind basis when such agreements are in aid of or benefit to the wildlife management of the area.
Title 50—Wildlife: Revision and Reorganization of Title, 25 Fed.Reg. 8,397, 8,413 (Dep’t of Interior Sept. 1, 1960) (“Final Rules”) (emphases added) (codified at 50 C.F.R.' § 29.2 (2012)). The Service defines a “person” as “an individual, club, association, partnership, corporation, or private or public body.” Id. at 8,398 (codified at 50 C.F.R. § 1.6). These regulations remain unchanged.
The Claims Court rejected the Government’s argument that, by authorizing the use of “cooperative agreements” rather than “procurement contracts,” the 1958 Act (which, in amending the 1934 Act, retained the “cooperative agreement” provision of the 1946 Act) exempts the Service’s CFAs from the competitive bid requirements of the CICA. Enacted in 1984, the CICA established a general requirement that executive agencies “obtain full and open competition through the use of competitive procedures” when “conducting a procurement for property or services.” Pub.L. No. 98-369, § 2711, 98 Stat. 494, 1175 (1984). The CICA originally did not include a dеfinition of “procurement,” but in 2011 Congress amended the act to define the term. An Act to Enact Certain Laws Relating to Public Contracts as Title 41, United States Code, “Public Contracts,” Pub.L. No. 111-350, sec. 3, 41 U.S.C. § 111, 124 Stat. 3677, 3681 (2011). The CICA now. defines “procurement” as “all stages of the process of acquiring property or services, beginning with the process for determining a need for property or services and ending with contract completion and closeout.” 41 U.S:C. § 111.
As an initial matter, the Claims Court found that the 1958 Act could not have preempted the CICA because Congress passed the CICA in 1984, twenty-six years after the 1958 Act. Hymas,
The Claims Court’s holdings resolve a non-existent conflict. .No provision in the CICA’s text indicates that Congress meant to replace the “cooperative agreements” provision of the earlier enacted
Turning to the 1958 Act’s text, the Claims Court found that it did not provide the Service with the authority to enter into the CFAs because the 1958 Act governs only “[cooperative] agreements between the Service and other ‘Federal, State, and public or private agencies and organizations’ to coordinate conservation between these various organizations.” Hymas,
We find ambiguity in the 1958 Act’s reference to “public or private agencies and organizations” where the Claims Court did not; its construction cannot stand. See Nat’l Cable & Telecomms. Ass’n v. Brand X Internet Servs.,
Pursuant to Congress’s express delegation in the 1958 Act, codified at 16 U.S.C. § 664, the Service promulgated 50 C.F.R. § 29.2 in 1960 through notiee-and-comment rulemaking. The regulation explains that the Service may enter into cooperative agreements with any “person,” 50 C.F.R. § 29.2, which includes “an individual, club, association, partnership, corporation, or private or public body,” 50 C.F.R. § 1.6. The Service’s decision to select the term “person” to interpret the ambiguous phrase “public or private agencies and organizations” in 16 U.S.C. § 661 reflects a permissible construction based upon a relevant dictionary definition. See Info. Tech.,
The Claims Court’s holdings do not support a different result. First, the Claims Court concluded that coordination between the Service and private farmers “make[s] [no] sense within the context of the statute,” Hymas,
In sum, the Service permissibly construed the 1958 Act in filling a statutory gap and properly found that the Act authorized it to negotiate cooperative agreements. As we explain in the next subsection, a separate statutory scheme — the Fish and Wildlife Act of 1956, Pub.L. No. 84-1024, 70 Stat. 1120 (1956) (“FWA”)— also permits the Service to negotiate cooperative agreements.
2. The Claims Court’s Construction Conflicts with the 1998 Act’s Unambiguous Terms and Legislative History
After it initially enacted the FWA in 1956 to rename the Service, Congress amended the FWA in 1998 in part to promote volunteer programs and community partnerships for the benefit of National Wildlife Refugеs. 1998 Act, 112 Stat. 1574. Pursuant to that amendment, Congress authorized the Service to “enter into [ ] cooperative agreements] ... with any partner organization, academic institution, or State or local government agency to carry out 1 or more projects or programs for a refuge.” Id. at sec. 5, 16 U.S.C. § 742f(d)(2)(A),
the Secretary of the Interior may negotiate and enter into a cooperative agreement with a partner organization, academic institution, State or local government agency, or other person to implement one or more projects or programs for a refuge or complex of geographically related refuges in accordance with the purposes of this subsection and in compliance with the policies of other relevant authorities, regulations, and policy guidance.
National Wildlife Refuge Volunteer Act of 2004, Pub.L. No. 108-327, sec. 4, § 742f(d)(2)(A), 118 Stat. 1271, 1272 (2004) (“2004 Amendments”) (capitalization altered) (emphases added). “[P]rojeets or programs” may include efforts to (1) “promote the stewardship of resources of the refuge through habitat maintenance, restoration, and improvement, biolоgical monitoring, or research”; and (2) “support the operation and maintenance of the refuge through constructing, operating, maintaining, or improving the facilities and services of the refuge[.]” 1998 Act, sec. 5, § 742f(d)(2)(B),
The Claims Court found that neither the 1998 Act nor the 2004 Amendments provide the Service with the authority to negotiate cooperative agreements like the
The Claims Court’s interpretation conflicts with the 1998 Act’s plain text. First, the Claims Court incorrectly construed the 1998 Act’s preamble to concern volunteer activities only. To the contrary, Congress enacted the 1998 Act to promote volunteer programs “and for other purposes.” 1998 Act,
The Claims Court’s reading of the legislative history is similarly problematic. When it passed the 1998 Act, Congress identified three broad purposes that included, among other goals, the facilitation of “partnerships between the [National Wildlife Refuge System] and non-Federal entities to promote public awareness of the resources of the System and public participation in the conservation of those resources” and the encouragement of “donations and other contributions by persons and organizations to the System.” 1998 Act, sec. 2(b),
Finally, the Claims Court’s assertion that Congress could have exempted the Service from the CICA in 2004 (but did not) proffers a false choice. The Service has the authority to negotiate cooperative agreements like the CFAs should it choose to do so. We have held that such agreements need not comply with the CICA in analogous circumstances. See CMS Contract Mgmt. Servs. v. Mass. Horn. Fin. Agency,
Taken together, the 1958 and 1998 Acts, as amended, are independent sources that authorize the Service to negotiate cooperative agreements like the CFAs. The Claims Court erred in holding оtherwise.
B. The Service Properly Construed the CFAs as Cooperative Agreements
Having determined that the statutory scheme permits the Service to enter into cooperative agreements, we next must answer whether the Service properly construed the CFAs at issue as “cooperative agreements,” rather than “procurement contracts.” “Whether a contract is a procurement contract or a cooperative agreement is a question of law,” which the court reviews de novo. Id. at 1385 (citing Maint. Eng’rs v. United States,
Various statutes address legal instruments under federal law. “Statutory interpretation begins with the language of the statute.” Norfolk Dredging Co. v. United States,
As previously observed, the Claims Court’s bid protest jurisdictiоn under 28 U.S.C. § 1491(b)(1) speaks “exclusively” to “procurement solicitations and contracts.” Res. Conservation,
The definition of “procurement” in 41 U.S.C. § 111 is not the only provision relevant to our inquiry, nor does a “procurement contract” encompass the entire universe of instruments at executive agencies’ disposal. In 1978, Congress passed the FGCAA in light of its findings that there was “a need to distinguish [f]ederal assistance relationships from [federal procurement relationships,” as well as “uncertainty as to the meaning of ... ‘cooperative agreement.’ ” FGCAA, sec. 2,
In particular, the FGCAA requires that “[a]n executive agency shall use a procurement contract” when “the principal purpose of the instrument is to acquire (by purchase, lease, or barter) property or services for the direct benefit or use of the United States Government.” Id. § 6303. By contrast, “[a]n executive agency shall use a cooperative agreement” when (1) “the principal purpose of the relationship is to transfer a thing of value” to the recipient “to carry out a public purpose of support or stimulation authorized by a law of the United States instead of acquiring (by purchase, lease or barter) property or services for the direct benefit or use of the United States Government” and (2) “substantial involvement” is “expected between the executive agency and the State, local government, or other recipient when carrying out the activity contemplated in the agreement.” Id. § 6305.
Pursuant to the authority delegated by. Congress, see id. § 6307, the Office of Management and Budget has explained that “determinations of whether a program is principally one of procurement or assistance, and whether substantial Federal in
1. The Claims Court’s Decision Misinterprets the Law
The Claims Court determined that the CFAs constituted procurement contracts because in its view the Service uses them “to obtain the services of farmer-cooperators to feed migratory birds and wildlife on the Refuges,” which in its “judgment ... is a procurement.” Hymas,
the agreements were used to obtain services from third-parties, not to provide assistance to them. In this case, the intended beneficiaries are the migratory birds and wildlife on the refuges. The farmer-cooperators are intermediaries. The Administrative Record demonstrates that the Service contracted with farmer-cooperators, not to benefit them financially, but to obtain their services to provide food for migratory birds and wildlife, in exchange for the farmers’ personal use of public-owned lands. The fact that farmer-cooperators may profit from this arrangement does not change their status as intermediaries. As such, the cooperative farming agreements in this case are procurements, subject to the Tucker Act.
Id. at 487 (footnote and citations omitted). It concluded by observing that 50 C.F.R. § 29.2 could not exempt the CFAs from its Tuсker Act jurisdiction because “numerous circuit courts ... have found uniformly that no Chevron deference is given because the task of determining a federal court’s jurisdiction falls to the court, not an agency.” Id. at 488 (brackets, internal quotation marks, and citation omitted).
The Claims Court’s holdings and Mr. Hymas’s arguments rest in large part upon the faulty premise that the definition of “cooperative agreement” in the FGCAA is irrelevant and that 41 U.S.C. § 111 contains the only definition that courts may consult to determine (1) whether a particular transaction constitutes a procurement and, consequently, (2) whether the Claims Court has bid protest jurisdiction over a particular claim. See Hymas,
What is more, the court did not hold in Distributed Solutions or in CMS that courts must construe instruments pursuant to 41 U.S.C. § 111 without regard to other relevant statutes.
Our case law counsels against such a narrow approach. For example, the court in CMS considered definitions in the FGCAA in determining that the instrument in question was a procurement contract, rather than a cooperative agreement.
The Claims Court’s construction also ignores the context in which Congress enacted the definition of “procurement” in 41 U.S.C. § 111. Congress legislated against the backdrop of the 1978 FGCAA when, in 2011, it defined “procurement” in' 41 U.S.C. § 111. “Congress is presumed to enact legislation with knowledge of the law and a newly-enacted statute is presumed to be harmonious with existing law and judicial concepts.” Aectra Refining & Mktg.,
With these precepts in mind, we find that the Service properly construed the CFAs as cooperative agreements, rather than procurement contracts. Under the FGCAA, whether an instrument reflects a “procurement contract” or a “cooperative agreement” turns upon the principal purpose of the relationship. If the Service principally intended to “transfer a thing of value” to the private farmers “to carry out a public purpose of support or stimulation authorized by a law of the United States instead of acquiring (by purchase, lease, or barter) property or services for the direct-benefit of or use of the United States Government,” then the instrument is a cooperative agreement. 31 U.S.C. § 6305(1). The Service must also remain “substantially] involve[d]” in the activity. Id. § 6305(2).
We find that the CFAs meet this definition. First, the Service principally intended the CFAs to transfer a thing of value (i.e., thе right to farm specific refuge lands and retain a share of the crop yield) to carry out a public purpose authorized by law (i.e., to conserve wildlife on the refuges). J.A. 173-203, 212-27. Indeed, the. 1958 Act provides that the Service “is au
The CFAs cannot be construed as procurement contracts because the agency did not intend to acquire farming “services” for the “direct benefit or use of the United States Government.” 31 U.S.C. § 6305(1); see 41 U.S.C. § 111 (defining “procurement” as encompassing “all stages of the process of acquiring property or services”). True, the CFAs indirectly benefit the Service since the .private farmers’ activities advance the agency’s overall mission, but that is true for nearly all cooperative agreements. More importantly, the Service does not directly benefit from the farming services provided pursuant to the CFAs because (1) it does not receive payment from the farmers pursuant to the agreements, see J.A. 79; and (2) “[rjefuge crop shares are all used by wildlife in the field” or retained by the farmers, such that “[tjhere are no excess crops for disposition” by the Service, J.A. 82. And as counsel for the Government explained, a traditional procurement would not provide the Service with the flexibility needed to react to exigencies that regularly arise under the cropland management plans on the Umatilla and McNary Refuges, such as decisions regarding what plants to crop, when to harvest them, and how to tend to them. See Oral Argument at 11:05-12:31, http://oraIarguments.cafc.uscourts.gov/ default.aspx?fl=2014-5150.mp3; see also J.A. 173-203, 212-27 (describing decisions that arise under the plans and the' need for flexibility in making them).
Our decision in CMS does not, аs the Claims Court held, warrant a different conclusion. In CMS, we found that “the proper instrument is a procurement contract” when a federal agency has “created an intermediary relationship with” a third party.
Congress intended the FGCAA to provide federal agencies with the “flexibility” to determinе “whether a given transaction or class of transactions is procurement or assistance and, if assistance, whether the transaction or class of transactions is to be associated with a type of grant or cooperative agreement relationship.” S.Rep. No. 95-449, at 10 (1977); see also id. (stating that “the mission of the agency will influence the agency’s determination” and that “the agency’s classification of its transactions will become a public statement for public, recipient, and congressional review of how the agency views its mission, its responsibilities, and its relationships with the nonfederal sector”).
C. Cooperative Agreements Are Not Subject to Tucker Act Review
With the foundational questions answered, the court must decide whether the Tucker Act confers jurisdiction on the Claims Court to hear Mr. Hymas’s claims. Our jurisprudence explains that the Claims Court’s jurisdiction under 28 U.S.C. § 1491(b) “exclusively” concerns “procurement solicitations and contracts,” Res. Conservation,
Conclusion
The remaining arguments are unpersuasive. Accordingly, the court vacates the Claims Court’s judgment and remands for disposition consistent with this opinion, including the dissolution of the permanent injunction and the dismissal of Mr. Hy-mas’s action.
VACATED AND REMANDED
Costs
Each party shall bear its own costs.
Notes
. The Umatilla Refuge covers mqre than 22,-000 acres “within the upper reach of Lake Umatilla in Benton County, Washington and Morrow County, Oregon,” and "was established to mitigate for the loss of wildlife habitat caused by the development of the John Day Lock and Dam and the subsequent flooding to create Lake Umatilla.” J.A. 90. It serves as "an important migration and wintering area for waterfowl and other birds in the Columbia River Basin.” J.A. 90. The McNary Refuge covers more than 15,000 acres "near the confluence of the Columbia and Snake Rivers in southeastern Washington” and "was established as mitigation for the wildlife habitat losses caused by the flooding of the Columbia River corridor with the completion of the McNary Dam.” J.A. 73; see also J.A. 133-34. Originally established "as a nesting area for the Great Basin Canаda Goose,” it has become "more important as a wintering area for the large numbers of mallards and other subspecies of Canada geese....” J.A. 73.
. In 1939, President Roosevelt transferred two bureaus operating within the United States Departments of Agriculture and Commerce, respectively, to the United States Department of the Interior and in 1940 consolidated them into what later became known as the “Fish and Wildlife Service.” See Reorganization Plan No. Ill, 54 Stat. 1231, 1232 (1940) (effective June 30, 1940) (consolidated, renamed); Reorganization Plan No. II, 53 Stat 1431, 1433 (1939) (effective July 1, 1939) (transferred).
. The canon of ejusdem generis teaches “that where general words follow a specific enumeration of persons or things, the general words should be limited to persons or things similar to those specifically enumerated.” United States v. Turkette,
. When Congress amended the CICA and reorganized Title 41 of the United States Code in 2011, it moved the definition of "procurement” from 41 U.S.C. § 403(2) to § 111. Sec. 3, § 111,
. The dissent states that "the FGCAA does not grant the agencies flexibility in determining when to use a particular instrument in government contracting” because 31 U.S.C. § 6303 articulates the circumstances under which an agency "shall” use a procurement contract. Dissent at 1332. Congress’s use of “shall” in § 6303 is not dispositive. The dissent overlooks Congress's other directives as tо when an agency "shall” use grants and cooperative agreements. 31 U.S.C. §§ 6304 (grants), 6305 (cooperative agreements).
. Counsel for both parties acknowledged at oral argument that no authority supports the proposition that 41 U.S.C. § 111 is the only dispositive source for our inquiry. Oral Argument at 17:53-18:15 (Counsel for Mr. Hy-mas), 29:48-30:26 (Counsel for the Govern
. The dissent states that "the crop management plans' description of cooperative agreements being 'negotiated' and of the farmer receiving a portion of the harvested crops 'in return' for his services strongly suggests a quid pro quo relationship” indicative of “acquisitions” secured through a procurement contract. Dissent at 1332. The argument is ipse dixit, and in any case, the natural corollary to that argument is that no negotiation or exchange occurs when “the principal purpose of the relationship is to transfer a thing of value” to the recipient "to carry out a public purpose of support or stimulation authorized by a law of the United States.” 31 U.S.C. § 6305(1).
. The dissent believes that our decision conflicts with CMS because, like in CMS, "the CFAs here engage third-party farmers merely as intermediaries that help the Service fulfill its mission of feeding migratory birds.” Dissent at 1332 (citing CMS,
. The dissent takes issue with our citation to legislative history, arguing that § 6303 is unambiguous in its direction that an agency "shall use a procurement contract” when the principal purpose is to acquire services for the direct benefit or use of the United States. Dissent at 1332. But we conclude that the CFAs do not have such a principal purpose. Thus, as we explained above, the "shall” language of § 6303 — as well as the dissent’s complaint about lack of its ambiguity and our reliance on legislative history — is misplaced.
. Because the Claims Court does not possess jurisdiction over Mr. Hymas's complaint, we need not address its findings that the Service violated various federal procurement laws and the APA when it entered into the CFAs. See Appellant’s Br. 30-49.
Dissenting Opinion
dissenting.
In CMS Contract Management Services v. Massachusetts Housing Finance Agency, we emphasized that when the principal purpose of an agreement is to procure services of a third party to help an agency achieve its mission, the proper instrument under the Federal Grant and Cоoperative Agreement Act (“FGCAA”) is a procurement contract.
I.
We explained in CMS that the FGCAA “sets forth the type of legal instrument an executive agency must use when awarding a federal grant or contract.” CMS,
Responding to protests filed by non-selected local housing authorities, we looked to the primary, or principal, purpose of the agreеments, as commanded by the statutory text. See 31 U.S.C. §§ 6303, 6305. We held that “the primary purpose of the [HUD agreements] is to procure the services of the [local housing authorities] to support HUD’s staff and provide assistance to HUD with the oversight and monitoring of Section 8 housing assistance.” CMS,
Here, the Claims Court determined that the principal purpose of the CFAs was to assist the Service in fulfilling its mission to feed migratory birds:
In this case, the intended beneficiaries are the migratory birds and wildlife on the refuges. The farmer-cooperators are intermediaries. The Administrative Record demonstrates that the Service contracted with farmer-cooperators, not to benefit them financially, but to obtain their services to provide food for migratory birds and wildlife, in exchange for the farmers’ personal use of public-owned lands.
Hymas v. United States,
The record confirms the Claims Court’s determination. In administering the National Wildlife Refuge System, the Service has a mission to “provide for the conservation of fish, wildlife, and plants, and their habitats within the System.” 16 U.S.C. § 668dd(a)(4)(A). To fulfill its mission, the Service is required to generate and comply with a comprehensive plan for managing the refuges under its control. 16 U.S.C. § 668dd(e). The comprehensive plan the Service established for the McNary and Umatilla Refuges indicates that “cropland farming management is a critical Refuge operation in meeting purposes of the Refuge,” including purposes such as “waterfowl management.” J.A. 162-63. Further, the Service’s cropland management plans explain that croplands on the Refuges are “primarily managed for the benefit of waterfowl.” J.A. 74, 92.
With that mission in mind, the Service contemplated three alternative options for cropland farming on the Refuges. Under the first option, the Service staff would produce crops. Specifically, “all crop production would be conducted by Refuge staff and all costs associated with fаrming (water, seed, fertilizer, etc.) paid for with Refuge funds.” J.A. 77, 96. The two other options involved third parties, with the Service contracting with farmers to cultivate the land and provide crops for the
The Service’s plans go on to describe a .CFA as “a negotiated agreement between the Refuge and private farmer to produce crops for both parties.” J.A. 79, 98 (emphasis added). “In return” for bearing the costs of production and “producing a specified amount of crops for the Refuge, the [farmer] is allowed to harvest and sell the remaining crops.” Id. To provide sufficient crops for the farmer to take as his own, CFAs require the Service' to cede much more land to farmers than the farm-for-pay option, which shows that the difference between option two — paying the farmers money in exchange for farming— and option three — paying the farmers share in crops in exchange for farming — is not a meaningful one.
Based on the record before us, the Claims Court did not err in concluding that the principal purpose of the CFAs is to “acquire (by purchase, lease, or barter) property or services for the direct benefit or use of the United States Government.” 31 U.S.C. § 6303 (emphasis added). Similar to the agreements in CMS, for which we found that the local housing authorities werе “merely used to provide a service to another entity which is eligible for assistance,” the CFAs here engage third-party farmers merely as intermediaries that help the Service fulfill its mission of feeding migratory birds. CMS,
II.
Despite the majority’s assertions to the contrary, the FGCAA does not grant agencies flexibility in determining when to use a particular instrument in government contracting. Quite the opposite, the statute directs that an executive agency:
shall use a procurement contract as the legal instrument ... when the principal purpose of the instrument is to acquire (by purchase, lease, or barter) property or services for the direct benefit or use of the United States Government.
31 U.S.C. § 6303 (emphasis added).
It is well-established that “shall” is ordinarily the language of statutory command; it is not generally permissive or subject to agency interpretation. Lexecon Inc. v. Milberg Weiss Bershad Hynes & Lerach,
Thus, because the principle purpose of the CFAs aligns with the criterion outlined in 31 U.S.C. § 6305, it is incorrect for the majority to assert that Congress “left a gap for agencies to fill” when determining what legal instrument to use. Maj. Op. 1329. For if “Congress has spoken clearly on the disputed question, then ‘that is the end of the matter’ ” and there is no gap for the Service to fill. City of Arlington v. FCC, — U.S. -,
Conclusion
Given our interpretive guidance in CMS and the plainly worded command of the FGCAA, I would uphold the Claims Court’s determination that the CFAs at issue here must be entered into as procurement contracts, giving the Claims Court subject matter jurisdiction under the Tucker Act and subjecting the CFAs to federal procurement laws such as the CICA. For the' foregoing reasons, I respectfully dissent.
