NATIONAL PARK HOSPITALITY ASSOCIATION V. DEPARTMENT OF THE INTERIOR
538 U.S. 803 (2003)
NATURE OF THE CASE: This was an appeal by National Park Hospitality Association (P) of an
affirmance by the Court of Appeals of a District Court ruling that 51.3 is a valid
regulation which holds that a concession contract is not governed by the CDA.
FACTS: The Contract Disputes Act establishes rules governing disputes arising out of
certain Government contracts. The statute provides that these disputes first be submitted to
an agency's contracting officer. A Government contractor dissatisfied with the contracting
officer's decision may seek review either from the United States Court of Federal Claims or
from an administrative board in the agency. Either decision may then be appealed to the
United States Court of Appeals for the Federal Circuit. In 1998 Congress enacted the
National Parks Omnibus Management Act of 1998 establishing a new and comprehensive
concession management program for national parks. The Act authorizes the Secretary of the
Interior to enact regulations implementing the Act's provisions. That authority was
delegated to the National Park Service. NPS promptly began a rulemaking proceeding to
implement the Act. After notice and comment, final regulations were issued in April 2000. A
concession contract (or contract) means a binding written agreement between the Director and
a concessioner . . . . Concession contracts are not contracts within the meaning of 41
U.S.C. 601 et seq. (the Contract Disputes Act), and are not service or procurement contracts
within the meaning of statutes, regulations or policies that apply only to federal service
contracts or other types of federal procurement actions. 51.3. Beginning in 1989, the
Department of Interior's Board of Contract Appeals ruled that NPS concession contracts were
subject to the CDA and subsequent attempts by NPS to convince the IBCA otherwise proved
unavailing. National Park Hospitality Ass'n (P) challenged the validity of 51.3. The
District Court upheld the regulation, applying the deference principle of Chevron U.S.A.
Inc. v. Natural Resources Defense Council, Inc. The court concluded that the CDA is
ambiguous on whether it applies to concession contracts and found NPS' interpretation of the
CDA reasonable. The Court of Appeals affirmed. It simply found that NPS' reading of the CDA
consistent with both the CDA and the 1998 Act. The Supreme Court granted certiorari to
consider whether the CDA applies to contracts between NPS and concessioners in the national
parks.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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