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Emery Worldwide Airlines, Inc. v. United States

In action brought by air-transportation provider contesting contract negotiated between U.S. Postal Service and FedEx on a "sole-source" basis, grant of summary judgment in favor of government affirmed because contract was rational, and statutory and procedural violations, if any, did not prejudice plaintiff.

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Appealed from: United States Court of Federal Claims Judge Christine O. C. Miller

DECISION

On January 10, 2001, the United States Postal Service (“USPS”) awarded Federal Express Corp. (“FedEx”) a seven-year contract valued at approximately $6.36 billion. Under the provisions of this contract, FedEx agrees to provide air transportation network services to deliver the USPS’s Express, Priority, and First Class mail. The USPS negotiated this contract with FedEx on a “sole-source” basis; that is, the USPS did not solicit competitive bids. Emery Worldwide Airlines, Inc. (“Emery”), an air transportation provider that currently transports postal mail under certain air service contracts with the USPS, filed an action in the United States Court of Federal Claims (“Court of Federal Claims” or “trial court”) contesting the USPS-FedEx contract award. After determining that it had subject matter jurisdiction, the trial court granted the government’s motion for summary judgment upholding the contract and denied Emery’s cross-motion for summary judgment, Emery Worldwide Airlines, Inc. v. United States, 49 Fed. Cl. 211 (2001). We affirm.

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