William F. Wilke, Inc. v. Department of Army
William F. Wilke, Inc. v. Department of Army
Dissenting Opinion
(dissenting):
I respectfully dissent from the conclusions of the majority in affirming the District Court’s denial of injunctive relief to the plaintiff herein.
The finding of the District Court that the Gregos’ bid was “untimely, nonre-sponsive, contrary to the terms of the invitation, void and of no effect” was clearly right. Such finding clearly encompassed a determination by the District Court that the Army violated the applicable statutes and the regulations promulgated thereunder.
It is clear beyond question that the unilateral action of the Army in awarding the bid to Gregos ignored the law to which it was committed and in effect amounted to an award of a contract by negotiation when there was no compelling reason so to do. Under the facts here, there was no emergency nor any circumstance requiring hasty action. To comply with the regular procurement requirements under the facts and circumstances was the clear duty of the Army, and it should have been required to exercise that duty by the District Court.
The majority concluded that the granting of injunctive relief was discretionary, relying on the case of M. Steinthal & Co. v. Seamans, 147 U.S. App.D.C. 221, 455 F.2d 1289 (1971). I do not agree that Steinthal supports such conclusion. In my opinion it is clearly distinguishable. Furthermore, I do not agree that the facts support the statement of the majority that a situation is here presented where the “granting of any relief is unusual.” Finally, I do not agree that Wilke’s right to recover bid costs provides a sufficient remedy.
The case of M. Steinthal & Co. v. Sea-mans, supra, as previously indicated is clearly inapplicable to the facts and the issues raised in the instant case. In
As indicated above, the court does not extend its function to those matters which are by the regulations not within the discretion of the officials. The court goes on further to talk about a prolonged period of time which it might take in settling such claims when contracts are vital to functions performed by the state. However, there is no time element involved in the instant case to bring this particular objection into play.
As hereinbefore indicated, a careful comparison of Steinthal and the instant case will clearly reveal significant differences. In Steinthal there is ambiguity in the invitation for bids. In Wilke there is none. In Steinthal the regulations vest discretion in the contracting officer to refuse the bids where an ambiguity exists in the invitation for bids. In Wilke the bid officer has no discretion to vary the time for receipt of bids. The cases cited by both parties clearly indicate that the only discretion which the bid officer has with respect to time is in case there is a discrepancy in the time in more than one clock. In such a case he may determine which clock is to be used. However, when there is no question as to the proper time, there is no discretion to be vested in the officer. More alarming, however, is the conduct of both the government and Gregos in the face of possible court action by Wilke. Although the government was well aware of the pending court action, on the very day that a hearing was set for the issuance of a temporary restraining order the government notified
I am of the firm opinion that the cases relied on by the district court and by the majority here establish only that in-junctive relief may be withheld in cases where unusual circumstances exist, such as an emergency or where some ambiguity or special situation dictates a relaxation of the requirements of the procurement processes established by law. No such facts are here presented. There was no discretion to be exercised by the Army. Consequently, the court had no basis in law or in equity for the exercise of discretion.
While I agree that judicial intervention in the procurement processes of agencies of government should be limited and that the peculiar circumstances of a particular case should be weighed in favor of nonintervention, the concept should not be extended beyond its obvious purpose. Certainly the courts should not refrain from granting relief when, as here, the governmental agency arbitrarily transgressed statutory limits and defied its own regulations and particularly where there were no exigent circumstances and no emergency to warrant it. In my opinion the law set out in the cases relied upon by the district court was misapplied. I do not believe that under any view of the facts of this case the denial of an injunction can be justified. In fact, to do so is to exercise a discretion that is at best illusory and transcendent.
It follows that I would reverse.
. Section 2-301 (a) of the Armed Forces Procurement Regulation provides in part that a bid must comply with the invitation for bids both as to method and timeliness of submission. Section 2-303.1 provides : “Bids which are received . . . after the exact time set for opening bids are ‘late bids’ even though received only one or two minutes late. Late bids shall not be considered for award except as otherwise authorized.”
Reference
- Full Case Name
- WILLIAM F. WILKE, INC., a Maryland corporation v. DEPARTMENT OF the ARMY OF the UNITED STATES of America, Appellees WILLIAM F. WILKE, INC. v. DEPARTMENT OF the ARMY OF the UNITED STATES of America and Robert F. Froehlke, Secretary of the Army, A & M Gregos, Inc., Intervenor-Defendant WILLIAM F. WILKE, INC., a Maryland corporation v. DEPARTMENT OF the ARMY OF the UNITED STATES of America and Robert F. Froehlke, Secretary of the Army, A & M Gregos, Inc.
- Cited By
- 1 case
- Status
- Published