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The Xerxe Group, Inc. v. United States

Citations: 278 F.3d 1357; 51 Fed. Cl. 1357; 2002 U.S. App. LEXIS 1670; 2002 WL 130708Docket: 01-5055

Court: Court of Appeals for the Federal Circuit; February 3, 2002; Federal Appellate Court

Narrative Opinion Summary

In the case of Xerxe Group, Inc. v. United States, Xerxe Group, Inc. appealed a summary judgment from the United States Court of Federal Claims, which ruled in favor of the United States concerning Count II of Xerxe's complaint. The dispute arose from Xerxe's 1998 submission of an unsolicited proposal to Patrick Air Force Base (PAFB) for electrical energy and services, which was rejected. Xerxe alleged that the government improperly used proprietary information from its proposal after PAFB issued a request for information on utility systems privatization. Xerxe sought $72 million in damages, claiming violations of confidentiality provisions under the Federal Acquisition Regulations (FAR), notably FAR 15.608 and 15.609. The Court of Federal Claims found that Xerxe did not fulfill the requirements for proprietary protection under these FAR provisions, specifically failing to mark restricted data correctly on each sheet of its proposal. The Federal Circuit upheld this decision upon de novo review, stressing the importance of adhering to the plain language of the FAR. Consequently, Xerxe's claim was rejected, affirming the judgment in favor of the United States.

Legal Issues Addressed

Marking Requirements for Unsolicited Proposals

Application: The court found that Xerxe Group, Inc. failed to mark each sheet of its proposal with the necessary restrictive legend, which was critical to its claim for protection under the FAR.

Reasoning: The Court of Federal Claims ruled in Xerxe Group, Inc. v. United States that while Xerxe marked its title page correctly, it failed to mark each sheet of restricted data as required, having only marked its cover letter and a company profile.

Protection of Proprietary Information under Federal Acquisition Regulations

Application: The court determined that Xerxe Group, Inc. did not comply with the requirements under FAR 15.608 and 15.609 to protect its proposal as proprietary, resulting in the rejection of its confidentiality claims.

Reasoning: The Court of Federal Claims concluded that Xerxe did not meet the necessary requirements for its information to be protected under these FAR provisions, thereby negating any protection against disclosure.

Standard of Review for Summary Judgment

Application: The Federal Circuit reviewed the summary judgment de novo, emphasizing the interpretation of FAR provisions based on their plain language.

Reasoning: The Federal Circuit has jurisdiction over the appeal and reviews the summary judgment and legal interpretations de novo.