MEMORANDUM OPINION
Introduction
This is a disappointed bidder’s challenge to a contract award made by the Washington Metropolitan Area Transit Authority (“WMATA”). It raises the infrequently litigated issue of whether an unsuccessful bidder has standing to challenge the contract award of an interstate agency created by interstate compact. Plaintiff, the unsuccessful bidder, charges that WMATA’s award was unlawful and seeks cancellation of the award together with issuance of a permanent injunction enjoining WMATA from awarding the contract to any party other than plaintiff.
Plaintiff originally moved for a preliminary injunction. Pursuant to Rule 65(a)(2), Fed.R.Civ.P., the hearing on the preliminary injunction was consolidated with the hearing on the merits. At the consolidated
Facts 1
Plaintiff, Seal and Company, Inc., is a District of Columbia corporation having its principal place of business in Chantilly, Virginia. It is engaged in the electrical contracting business and has successfully bid on and performed contract work for WMA-TA since 1972. Defendant WMATA is an interstate agency created by the Washington Metropolitan Area Transit Authority Compact (“the Compact”) executed by Virginia, Maryland and the District of Columbia and approved by Congress 2 in accordance with the U.S. Const. art. I, § 10, cl. 3. WMATA, under the Compact, is charged with operating the Metro system serving the Washington metropolitan area. Defendant Dynatran is a corporation having its principal place of business in Sterling, Virginia. It is the successful bidder for the challenged contract award.
On February 19, 1991, WMATA issued Invitation for Bids No. IFB-C-882 (“the IFB”) requesting bids on the construction of the communications system for Metro’s Green Line between Fort Totten and Greenbelt, Maryland. The IFB contained a “Buy American Certificate” which bidders were expected to execute, along with numerous other certificates. 3 WMATA received numerous bids. Plaintiff was the low bidder, but had not executed the Buy American Certificate contained in its bid. Dynatran was the second lowest bidder. No allegations have been made suggesting that Dynatran’s bid failed in any way to conform to the IFB. Upon opening the bids and noting plaintiff’s unexecuted Buy American Certificate, WMATA contacted plaintiff’s representatives, who in turn immediately forwarded an executed Buy American Certificate. That same day, however, WMATA verbally advised plaintiff that it regarded plaintiff’s bid as nonre-sponsive because, as initially submitted, the bid did not include an executed Buy American Certificate. On April 18th and 19th, plaintiff sent letters to WMATA protesting the determination that its bid was nonre-sponsive. As the next lowest bidder and beneficiary of this determination, Dynatran protested any award to plaintiff. By letter dated May 6, 1991, WMATA’s contracting officer issued his final decision denying plaintiff’s protest and confirming the determination that plaintiff’s bid was nonre-sponsive. Plaintiff then initiated this action by filing its complaint on May 16,1991.
Analysis
This Court has subject matter jurisdiction pursuant to Section 81 of the Compact.
4
Plaintiff contends that WMATA has acted arbitrarily and in violation of its own procurement regulations and existing law by failing to award the disputed contract to plaintiff, as the lowest responsible bidder. In particular, plaintiff contends that completing the Buy American Certificate is not a condition of responsiveness. Alternatively, plaintiff contends that even if the Buy American Certificate is a condition of re
I.
The standing issue has two parts, one concerning the existence of a “private cause of action,” and the second relating to “standing” or “injury.” More specifically, the Court must first determine whether Congress in enacting the Compact intended to create “a cause of action” for private parties aggrieved by WMATA’s alleged failure to follow the procurement procedures mandated by the Compact. “The question whether a statute creates a cause of action, either expressly or by implication, is basically a matter of statutory construction.”
Transamerica Mortgage Advisors, Inc. v. Lewis,
When the action of a
federal
agency is at issue, the two part analysis just described is somewhat simplified. The first question — is there a private cause of action or remedy? — is presumed to have been answered affirmatively by Congress, absent evidence to the contrary.
6
This is so because § 10 of the Administrative Procedure Act (“APA”), 5 U.S.C. § 702, authorizes suits by any person “suffering legal wrong
Numerous Circuits, including the Fourth, have held that a disappointed bidder for a
federal
agency contract is a person “adversely affected or aggrieved by agency action” pursuant to § 10 of the Administrative Procedure Act (“APA”), 5 U.S.C. § 702, and has standing to challenge an agency’s contract award in federal court.
See Motor Coach Industries, Inc. v. Dole,
While those seeking Government contracts have no right to the award of a contract, they do have a right to reasonable treatment of their bids.... This right derives from the combination of the statutory scheme regulating [the agency’s] procurement ... and the review provisions of the Administrative Procedure Act, 5 U.S.C. § 702.
In the present, unusual case, the agency involved — WMATA—is not a
federal
agency. Rather, it is “an instrumentality and agency of each of the signatory parties— the District of Columbia, Maryland, and Virginia.”
Washington Metro. Area Transit Authority v. One Parcel of Land,
Contracts for the construction, reconstruction or improvement of any facility when the expenditure required exceeds twenty-five thousand dollars ($25,000) and contracts for the purchase of supplies, equipment and materials when the expenditure required exceeds ten thousand dollars ($10,000) shall be advertised and let upon sealed bids to the lowest responsible bidder. Notice requesting such bids shall be published in a manner reasonably likely to attract prospective bidders, which publication shall be made at least ten days before bids are received and in at least two newspapers of general circulation in the Zone. 8
There can be no doubt that “the WMATA Compact became federal law when consented to by Congress,”
Washington Metropolitan Area Transit Authority v. One Parcel of Land,
Two courts have addressed this issue, one directly and one indirectly. In
Otis Elevator Co. v. Washington Metropolitan Area Transit Authority,
In concluding that the WMATA Compact was imbued with a “federal interest,” the
Otis
court relied on
The Bootery, Inc. v. Washington Metropolitan Area Transit Authority,
Although not employing precisely the same analysis as
Otis
and
The Bootery,
this Court also concludes that Congress intended that private parties have standing to challenge WMATA’s procurement actions. And this result is compelled whether WMATA is viewed (1) as a non-federal agency and a “private cause of action” analysis is employed using the techniques of statutory interpretation outlined in
Transamerica Mortgage Advisors, Inc. v. Lewis,
Finally, the procurement amendment would raise the threshold for advertising contract bids for supplies and equipment from $2,500 to $10,000 and for construction and reconstruction contract bids from $10,000 to $25,000. These changes are consistent with Federal procurement policy. We understand that these are the only procurement changes proposed in this amendment, and that WMATA’s current procurement regulations, which follow Federal requirements, will not otherwise be affected by this amendment.
This testimony, heavily relied upon in the House Report, further supports the conclusion that Congress intended WMATA to function as a federal agency with respect to procurements. This is also reflected in WMATA’s extensive procurement regulations, which state that they
implement pertinent provisions of the Washington Metropolitan Area Transit Authority Compact; OMB Circular A-102 ... UMTA Circular C 4220.1, dated August 6, 1979 and relevant decisions of the courts and the Comptroller General of the United States.
Moreover, the existence of a cause of action for disappointed bidders is arguably implicit in Section 73 and in the scheme of the Compact, for if private bidders on WMATA’s contracts lacked standing to challenge WMATA’s awards, it is hard to see how Section 73’s mandate that contracts be awarded to the lowest responsible bidder would be monitored and enforced.
Yet additional evidence that Congress envisioned that WMATA would function like a federal agency with respect to procurements is apparent from the unique nature of WMATA. The WMATA Compact is distinguishable from other Congressionally-approved compacts by the degree of feder
In summary, all of these factors point collectively and persuasively to the conclusion that Congress intended WMATA to conduct its procurements as a federal agency would, and to be subject to suits by aggrieved bidders for procurement activities in violation of the Compact or WMA-TA’s regulations. 17 Thus, as an aggrieved bidder, plaintiff has standing to sue.
Plaintiffs first merits claim is that failure to sign the Buy American Certificate did not render its bid nonresponsive to the IFB. This claim fails. First, regulations promulgated by the Urban Mass Transit Administration (“UMTA”), an agency of the U.S. Department of Transportation from which WMATA receives grants, mandate that WMATA require its bidders to complete a Buy American Certificate as a “condition of responsiveness.” 18 Consistent with this, the Comptroller General’s standards for bid responsiveness make clear that plaintiffs bid, without the signed Buy American Certificate, was nonre-sponsive. In a recent decision involving a Buy American Certificate, the Comptroller General concluded that, even where a bidder may not have fully completed such a certificate, a bid may be responsive to an IFB where “there would be no opportunity after bid opening for the bidder to affect the relative standing, or acceptance or rejection, of its bid.” Manatts, Inc., B-237532, February 16, 1990, 90-1 CPD ¶ 287. Put another way:
... a bid should not be rejected as nonre-sponsive because it does not contain all of the information necessary to perform a Buy American Act analysis only where the additional information required from the bidder would not change the relative standing of the bidders ... or allow the bidder to manipulate its bid to its advantage.
Id.
It is clear from
Manatts
and other Comptroller General decisions
19
that the language of a specific Buy American Certificate, and the IFB containing it, must be examined to determine whether failure to complete the certificate permits material alteration of a bid subsequent to the opening of bids and hence renders a bid nonre-sponsive. In this case, the Buy American Certificate really contained two certificates: one for the bidder to check, sign and date if it pledged to comply with the domestic content and assembly requirements of the Buy American Act, and an alternative one to be checked, signed and dated if the bidder did not intend to comply but believed it qualified for an exception to the Buy American Act requirements. Plaintiff checked neither certificate. Had plaintiff checked the second, foreign source certificate, either before or after the opening of bids, WMATA would have been required by UMTA regulations to increase plaintiff’s bid price by ten percent.
20
Thus, plaintiff’s
Plaintiff contends, however, that merely by signing its bid it bound itself to comply with the domestic component and assembly requirements of the Buy American Act. This contention is baseless. By signing the bid, plaintiff bound itself to “perform all work ... in strict accordance with the Specifications, appendices, certifications, Contract Drawings, schedules, insurance specifications, and [certain other] conditions” of the IFB.
21
Although plaintiff contends that the specifications sections of the IFB bound it to use only domestic sources, it points to no specific language to this effect and none has been found.
22
Only the Buy American Certificate contained in the IFB pertains to this issue and, as already noted, plaintiff failed to complete the certificate. Even so, plaintiff maintains that it was bound by law upon submission of its bid to use only domestic sources. But, as noted above, the Buy American Act and UMTA regulations permit the use of foreign sources if a bidder qualifies for an exception. Here, plaintiff simply failed to note whether it intended to provide only domestic products or to seek an exception. Finally, plaintiff argues that since it supplied WMATA with a properly completed Buy American Certificate shortly after bid opening, the contracting officer acted arbitrarily in rejecting its bid. However, “only material available at bid opening may be considered in making a responsiveness determination.”
Bulloch International, Inc.,
B-237369, February 5, 1990, 90-1 CPD ¶ 153;
accord Rocco Indus., Inc.,
B-227636, July 24 1987, 87-2 CPD ¶ 87.
23
There is, therefore, no basis for concluding that the contracting officer acted arbitrarily in choosing to ignore plaintiffs after-bid submission. In sum, an examination of the specific Buy American Certificate at issue, the language of the IFB as a whole, and applicable law all show that plaintiffs failure to check either the domestic or foreign source certificate was a
Retreating one step, plaintiff contends that its failure to complete the Buy American Certificate should be excused because WMATA failed to give notice in the IFB that not completing one or the other alternative certificate would render a bid nonresponsive. Plaintiff maintains that UMTA regulations at 49 C.F.R. § 661.13 required WMATA to print such a warning. This argument, too, is unpersuasive. First, the UMTA regulations relied on do not explicitly require the printed warning plaintiff demands. Moreover, even assuming notice of some sort was required, the IFB arguably gave adequate notice by incorporating by reference those provisions of the Buy American Act and UMTA regulations that require completion of the Buy American Certificate. 24
Plaintiffs last argument is that the Buy American Certificate was ambiguously worded and that this, too, should excuse noncompletion of the Certificate. Specifically, plaintiff objects to the first sentence of the Certificate, which reads:
If buses or other rolling stock (including train control, communications and traction power equipment) are being procured, the appropriate certificate as set forth below shall be completed and submitted by each bidder in accordance with the requirements contained in 661.13(b) of this Part [49 C.F.R. § 661.13(b)],...
Plaintiffs president and chairman maintain that because the words “train control, communications ... equipment” appeared in parentheses rather than between commas, they were justified in construing such words to refer only to such equipment if installed or located on a bus or train car. They therefore concluded that the Buy American Certificate did not apply to the instant procurement, which was for train communications equipment to be installed in Metro’s stations and tunnels.
Plaintiffs contention strains credulity. First, a reasonable reading of the sentence leads to the conclusion that it applied to the equipment at issue, as equipment used to control and communicate with trains and for traction is located outside, as well as within, trains. Moreover, this precise language is ubiquitous in the realm of transportation procurement. It appears verbatim (including the parentheses) at 49 C.F.R. § 661.12 (1990), and is the language UMTA apparently requires grant recipients to use in IFBs. Moreover, the parties have stipulated that plaintiffs officers previously read and executed a Buy American Certificate containing identical language that appeared in a prior WMATA IFB for “off-board” communications equipment. The Court therefore concludes that there is no ambiguity in the IFB language that excuses plaintiffs failure to complete the certificate.
Moreover, the term “communications equipment” is defined in detail at 49 C.F.R. § 661.11, a section specifically referenced in the IFB’s Buy American Certificate. Section 661.11(i) lists communications equipment located outside of rolling stock.
25
Hence, even assuming that plaintiffs officers, despite their considerable experience with transportation procurements, were confused by the language quoted above, they were obligated to be familiar
Conclusion
The Court concludes that WMATA’s rejection of plaintiffs bid as nonresponsive was in accordance with WMATA procurement regulations and applicable case law and hence was not arbitrary, capricious, or in violation of the law. Plaintiffs complaint should therefore be dismissed with prejudice.
Notes
. This opinion constitutes the Court’s findings of fact and conclusions of law in accordance with Rule 52(a), Fed.R.Civ.P.
. Act of Congress, Pub.L. No. 89-774, 80 Stat. 1324, 1353 (November 6, 1966), noted to D.C.Code §§ 1-2411 et seq. (1990).
. WMATA was required by regulations of the Urban Mass Transit Administration ("UMTA”), see 49 C.F.R. § 661.13 (1990), to include a Buy American Certificate in the IFB. In turn, these regulations implement the Buy American Act, 41 U.S.C. §§ 10a-10d.
. Section 81 of the Compact states:
The United States District Courts shall have original jurisdiction, concurrent with the Courts of Maryland and Virginia, of all actions brought by or against the Authority and to enforce subpoenas issued under this Title. Any such action initiated in a State Court shall be removable to the appropriate United States District Court in the manner provided by Act of June 25, 1948, as amended (28 U.S.C. 1446).
D.C.Code § 1-2431, Va.Code §§ 56-529 and - 530.
. In
Allen v. Wright,
[sjtanding doctrine embraces several judicially self-imposed limits on the exercise of federal jurisdiction, such as the general prohibition on a litigant’s raising another person’s legal rights, the rule barring adjudication of generalized grievances more appropriately addressed in the representative branches, and the requirement that a plaintiffs complaint fall within the zone of interests protected by the law invoked.... The requirement of standing, however, has a core component derived directly from the Constitution. A plaintiff must allege personal injury fairly traceable to the defendant’s allegedly unlawful conduct and likely to be redressed by the requested relief.
Id.
at 751,
.
See Japan Whaling Ass’n v. American Cetacean Society,
. In
Association of Data Processing Service,
and its companion case,
Barlow v. Collins,
. Section 73 continues as follows:
The Board may reject any and all bids and readvertise in its discretion. If after rejecting bids the Board determines and resolves that, in its opinion, the supplies, equipment and materials may be purchased at a lower price in the open market, the Board may give each responsible bidder an opportunity to negotiate a price and may proceed to purchase the supplies, equipment and materials in the open market at a negotiated price which is lower than the lowest rejected bid of a responsible bidder, without further observance of the provisions requiring bids or notice. The Board shall adopt rules and regulations to provide for purchasing from the lowest responsible bidder when sealed bids, notice and publication are not required by this section. The Board may suspend and waive the provisions of this section requiring competitive bids whenever:
(a) the purchase is to be made from or the contract is to be made with the Federal or any State government or any agency or political subdivision thereof or pursuant to any open-end bulk-purchase contract of any of them;
(b) the public exigency requires the immediate delivery of the articles;
(c) only one source of supply is available; or
(d) the equipment to be purchased is of a technical nature and the procurement thereof without advertising is necessary in order to assure standardization of equipment and interchangeability of parts in the public interest.
. Section 14 states that "[t]he Board, in the preparation, revision, alteration or amendment of a mass transit plan, shall ... consider data with respect to ... [the] impact of transit plans on the dislocation of families and business-es_”
. See, e.g., Federal Acquisition Regulations, 49 C.F.R. §§ 9.101, 9.104-1 (1990) (defining the term "responsible prospective contractor"); 49 C.F.R. § 14.407-1 (directing contracting officer conducting sealed bids to "make a contract award ... to that responsible bidder whose bid, conforming to the invitation, will be the most advantageous to the Government, considering only price and the price-related factors ... included in the invitation’’); and 49 C.F.R. § 14.407-2(a) (“The contracting officer shall determine that a prospective contractor is responsible ... and that the prices offered are reasonable before awarding the contract”).
. See Washington Metropolitan Area Transit Regulation Compact Amendments, Pub.L. 100-285, 102 Stat. 82 (1988).
. See National Capital Transportation Act, Pub.L. 86-669, 74 Stat. 537 (1960); National Capital Act, Pub.L. 89-173, 79 Stat. 666 (1965).
. As one Congressman remarked during debates on ratifying the Compact: “This is an unusual compact, however. It is not the usual situation. Usually the compact is between two or three sovereign States, and they agree upon something, come to the Congress, and we approve it or disapprove it. In this case the Congress is one of the legislative branches involved in agreeing on the compact.” 112 Cong.Rec. 25656 (1966) (statement of Rep. Whitener).
. See Scanwell, Wilke and similar cases discussed in the text supra.
. Upon taking over from the National Capital Transportation Agency, WMATA became the heir to $100 million dollars that Congress had already committed on behalf of the federal government and $50 million that Congress had committed on behalf of the District of Columbia for developing the capital’s transportation system. The federal contribution, at the time of enactment, was expected to be increased to approximately $400 million dollars. Moreover, the federal government agreed to share any costs in excess of fare receipts with the participating states and the District of Columbia. See S.Rep. No. 1491, 89th Cong., 2nd Sess. 6-7, 21, 24 (1966); H.R.Rep. No. 1914, 89th Cong., 2d Sess. (1966); 112 Cong.Rec. 25656-57 (1966) (statement of Rep. Poff); the Compact, § 16.
. See, e.g., S.Rep. No. 1491, 89 Cong., 2d Sess. 21 (1966).
.
Sowell’s Meats and Services, Inc. v. McSwain,
We must, therefore, examine federal law dealing with the procurement of food for the national school lunch program to determine whether Congress intended to afford standing to disappointed bidders to sue state agencies that are recipients of federal aid.
Id. at 228. Following this analytical framework, the Fourth Circuit panel noted that Congress authorized the Secretary of Agriculture to prescribe regulations for the operation of the school lunch program. The regulations adopted by the Secretary "authorized] grantees to use their own procedures and apply local laws.” Id. The Fourth Circuit panel concluded that:
Neither the statute, the regulations, nor [OMB Circular A-102] expressly confer standing on a disappointed bidder to question a state agency’s award of a procurement contract, and we find no implicit conferral of standing. The standards do not require state agencies to award a contract to the low bidder.
The analysis used in Sowell’s is the same as that used here. A different result is compelled here because there is a federal statute mandating that WMATA award contracts only to the lowest responsible bidder. Additionally, as noted in the text, there are other indicia of Congressional intent to permit and authorize judicial review of actions by disappointed WMATA bidders.
. UMTA regulations state in relevant part:
(a) The grantee [here, WMATA] shall adhere to the Buy America clause set forth in its grant contract with UMTA.
(b) The grantee shall include in its bid specification for procurement within the scope of these regulations an appropriate notice of the Buy America provision. Such specifications shall require, as a condition of responsiveness, that the bidder or offeror submit with the bid a completed Buy America certificate in accordance with § 661.6 or § 661.12 of this part, as appropriate.
49 C.F.R. § 661.13 (1990) (emphasis added).
. Compare Manatts; Bulloch International, Inc., B-237369, Feb. 5, 1990, 90-1 CPD ¶ 153; General Counsel’s Letter Opinion, April 4, 1972, 51 Comp.Gen. 814 (1972), each finding that irregularities associated with Buy American Certificate rendered bid nonresponsive, with Illinois Constructors Corp., B-209214, Feb. 28, 1983, 83-1 CPD ¶ 197; Avantek, B-170498, March 30, 1971, 50 Comp.Gen. 697, each finding that Buy American Certificate irregularities did not render bid nonresponsive.
. The bid of a bidder who checks the foreign source certification will not be rejected if the bidder qualifies for an exception to the domestic content and assembly requirements of the Buy American Act. An exception to these requirements is permitted where “the inclusion of domestic materials will increase the cost of the overall project contract by more than 10 percent in the case of projects for the acquisition of buses, rolling stock ... and train control equip
In determining whether the exception will be granted, the lowest responsive and responsible bid offering a non-United States produced item will be multiplied by 1.1_ If the resulting amount is less than the lowest responsive and responsible bid offering all items produced in the United States, then the exception will be granted.
Id.
. IFB at BF-1.
. It is true that on pages 1-45 and 1-46 provisions from the Buy American Act are reproduced. However, these provisions do not themselves bind a party signing the IFB to provide only domestic source products. Only the Buy American Certificate appearing at page BF-6 of the IFB contained language binding the bidder if checked.
. Plaintiff also contends that its late submission of the executed Buy American Certificate should have been accepted pursuant to WMATA procurement regulations which permit a WMA-TA contacting officer to waive a "minor informality or irregularity” in a bid. WMATA Procurement Policies, Chapter II, § 5(f); see also 48 C.F.R. § 14.406 (1990) (permitting correction of inconsequential mistakes in bids). Chapter II, § 5(f) defines a "minor informality or irregularity” as “a matter of form and not of substance," and states that a deviation from an IFB is immaterial "when its significance as to price ... is trivial or negligible." As already noted, plaintiffs failure to sign the Buy American Certificate was a material error having a significant effect on price. Hence, § 5(f) is inapplicable.
. Actual provisions of the Buy American Act pertaining to train control and communication equipment, the equipment at issue here, were reprinted in the IFB at pages I-45 and I-46. Moreover, on pages I-46 and BF-6 of the IFB, the UMTA regulations at 49 C.F.R. Part 661 were explicitly referenced. In particular, 49 C.F.R. § 661.13(b), which requires that the Buy American Certificate be included in any IFB as a condition of responsiveness, is referenced on page BF-6 in the first paragraph of the Buy American Certificate included in the IFB.
. The regulation states in relevant part:
(i) Communications equipment includes, but is not limited to, the following equipment:
(10) Communication console at central control.
(13) Data transmission system central processors.
(14) Data transmission system remote terminals.
(17) Security console at central control. 49 C.F.R. § 661.11(i)(10), (13), (14), (17) (1990).
