UNITED STATES ARMY CORPS OF ENGINEERS, ET AL., PETITIONERS V. AMERON, INC., ET AL. No. 87-163 In the Supreme Court of the United States October Term, 1987 On Writ Of Certiorari To The United States Court Of Appeals For The Third Circuit Brief For The Petitioners PARTIES TO THE PROCEEDING The petitioners, who were defendants in the district court, are the United States Army Corps of Engineers; Frank Carlucci, the Secretary of Defense (substituted for Caspar W. Weinberger pursuant to this Court's Rule 40.3); James C. Miller, III, the Director of the Office of Management and Budget; and Lt. Col. Michael K. Collmeyer, a contracting officer of the Corps of Engineers. The respondents are Ameron, Inc., the plaintiff in the district court; Spiniello Construction Co., a defendant in the district court; the United States Senate and the Speaker and Bipartisan Leadership Group of the House of Representatives, who were granted leave to intervene in the district court; and Charles A. Bowsher, the Comptroller General of the United States, who was granted leave to intervene in the court of appeals. TABLE OF CONTENTS Questions presented Parties to the proceeding Opinions below Jurisdiction Constitutional and statutory provisions involved Statement: A. The statutory scheme B. The response to the stay provisions by the President and other executive officials C. The proceedings in this case Summary of argument Argument: I. The stay provisions of the Competition in Contracting Act violate the separation of powers under the Constitution A. Chadha and Synar establish that Congress may not vest the Comptroller General with the power to control the timing of contracts between Executive Branch agencies and private parties B. The stay provisions cannot be sustained as a necessary and proper means of implementing Congress's legislative powers C. The stay provisions cannot be sustained by analogy to "report and wait" provisions D. The stay provisions of CICA cannot be sustained under a balancing test II. The stay provisions should be severed from the remainder of the procurement-protest subtitle of CICA Conclusion OPINIONS BELOW The opinions of the court of appeals (Pet. App. 1a-58a, 59a-100a) are reported at 809 F.2d 979 and 787 F.2d 875. The opinions of the district court (Pet. App. 108a-132a, 135a-147a) are reported at 607 F. Supp. 962 and 610 F. Supp. 750. JURISDICTION The judgment of the court of appeals on rehearing (Pet. App. 101a-102a) was entered on December 31, 1986, and a petition for rehearing was denied on February 27, 1987 (Pet. App. 105a-106a). On May 20, 1987, Justice Brennan extended the time within which to file a certiorari petition to July 27, 1987. The petition was filed on that date and was granted on March 21, 1988 (J.A. 75). The jurisdiction of this Court is invoked under 28 U.S.C. 1254(1). CONSTITUTIONAL AND STATUTORY PROVISIONS INVOLVED Relevant provisions of Articles I and II of the Constitution; 31 U.S.C. 702 and 703; and the Competition in Contracting Act of 1984, 31 U.S.C. (Supp. III) 3551-3556, are reproduced at Pet. App. 151a-160a. QUESTIONS PRESENTED The protest provisions of the Competition in Contracting Act of 1984 (CICA), 31 U.S.C. (Supp. III) 3551-3556, authorize a private party who wishes to challenge an Executive Branch agency's proposed or actual award of a procurement contract to file a protest with the Comptroller General, an officer of the Legislative Branch who is removable only by Congress. Subject to certain exceptions, CICA requires the agency to refrain from awarding the contract, or to direct the contractor to cease performance of a contract that has already been awarded, until the Comptroller General renders his decision on the protest. The questions presented are: 1. Whether, under the doctrine of separation of powers and this Court's decisions in Bowsher v. Synar, No. 85-1377 (July 7, 1986), and INS v. Chadha, 462 U.S. 919 (1983), Congress may constitutuinally vest power in the Comptroller General to affect the timing of the award or performance of a contract between an Executive Branch agency and a private party. 2. Whether, if the CICA stay provisions are unconstitutional, those provisions should be severed from the remainder of the procurement-protest subtitle of CICA. STATEMENT The case involves the constitutionality of one feature of the bid-protest provisions of the Competition in Contracting Act of 1984 (CICA), 31 U.S.C. 3551-3556. /1/ That feature authorizes the Comptroller General, a Legislative Branch officer who may be removed from office only by Congress (31 U.S.C. 703(e)(1)), to control the timing of the award or performance of a contract between an Executive Branch agency and a private party. A. The Statutory Scheme 1. CICA was enacted as Title VII of Division B of the Deficit Reduction Act of 1984 (DEFRA), Pub. L. No. 98-369, 98 Stat. 1175. Most of CICA consists of extensive substantive amendments to the Federal Property and Administrative Services Act of 1949, Tit. III, 41 U.S.C. (& Supp. III) 251 et seq., which governs procurement by civilian agencies, and the Armed Services Procurement Act of 1947, 10 U.S.C. (& Supp. IV) 2301 et seq., which governs procurement by the Department of Defense (DOD), the Cost Guard, and the National Aeronautics and Space Administration (NASA). Those amendments were designed to promote competition in the procurement of goods and services by mandating the use of competitive procedures except where other methods are expressly authorized, tightening restrictions on noncompetitive procurement, mandating planning and specifications that facilitate competition, prescribing procedures for the evaluation of sealed bids and competitive proposals, and requiring contractors to submit detailed cost and pricing data. See Sections 2711-2714 of DEFRA, 98 Stat. 1175-1185, 41 U.S.C. (Supp. III) 253-254; Sections 2721-2727 of DEFRA, 98 Stat. 1185-1195, 10 U.S.C. (& Supp. IV) 2301-2306, 2310-2311. In addition, CICA amends the Office of Federal Procurement Policy Act of 1974, 41 U.S.C. (& Supp. III) 401 et seq., /2/ to prescribe new notification requirements for the solicitation of bids and proposals; direct each agency to submit an annual report to Congress on competition-promoting measures; and require each agency to designate an advocate for competition, with responsibility to challenge barriers to competition. Section 2732(a) of DEFRA, 98 Stat. 1195-1197, 41 U.S.C. (Supp. III) 417-419. See generally H.R. Conf. Rep. 98-861, 98th Cong., 2d Sess. 1422-1432 (1984); S. Rep. 98-50, 98th Cong., 1st Sess. (1983); S. Rep. 98-297, 98th Cong., 1st Sess. (1983); H.R. Rep. 98-1157, 98th Cong., 2d Sess. (1984); Pet. App. 5a-8a. 2. The final subtitle of CICA, at issue here, establishes a "Procurement Protest System," which authorizes the Comptroller General to entertain objections to agency procurement decisions and requires the agency to stay the award or performance of the contract pending his decision. Section 2741(a) of DEFRA, 98 Stat. 1199-1203, 31 U.S.C. 3551-3556. Under the statutory scheme, a prospective or actual bidder for a procurement contract with an agency of the Executive Branch may challenge the agency's solicitation of bids or its proposed or actual award of a contract by filing a protest with the Comptroller General (Section 3552), who "shall decide" the protest (Section 3553(a)). Upon receipt of the protest, the Comptroller General must immediately notify the federal agency involved (Section 3553(b)(1)). The agency then must submit a report on the protested procurement to the Comptroller General within 25 working days or such longer period as the Comptroller General may allow Section 3553(b)(2)(A) and (B)). /3/ If the agency receives notice of the protest prior to award of the contract, the contract "may not be awarded" while the protest is pending (31 U.S.C. 3553(c)(1)), unless the head of the agency makes a written finding and notifies the Comptroller General that "urgent and compelling circumstances which significantly affect interests of the United States will not permit waiting for the decision of the United States will not permit waiting for the decision of the Comptroller General" (Section 3553(c)(2)). /4/ If the agency receives notice of the protest within 10 days after award of the contract, the agency "shall * * * immediately direct the contractor to cease performance under the contract and to suspend any related activities that may result in additional obligations being incurred by the United States under that contract" (Section 3553(d)(1)). The head of the agency then may authorize performance of the contract while the protest is pending only if he finds that "urgent and compelling circumstances" will not permit waiting for the decision of the Comptroller General or that "performance of the contract is in the best interests of the United States" (Section 3553(d)(2)). The Comptroller General has discretion to determine how long he will retain a bid protest under consideration and therefore how long the contract will be delayed. CICA contemplates that the Comptroller General "shall issue a final decision concerning a protest within 90 working days," but he may extend that time -- and thereby further delay the award or performance of the contract -- if he determines that "the specific circumstances of the protest require a longer period" (31 U.S.C. 3554(a)(1)). CICA also directs the Comptroller General to establish an "express option" for deciding protests that are "suitable for resolution within 45 claendar days" (Section 3554(a)(2)) and permits him summarily to dismiss any protest that he determines "is frivolous or which, on its face, does not state a valid basis for protest" (Section 3554(a)(3)). If the Comptroller General "determines that the solicitation, proposed award, or award does not comply with a statute or regulation," he must recommend that the agency take corrective action -- award the contract to the protester, issue a new solicitation, terminate the contract, or "implement such other recommendations as the Comptroller General determines to be necessary in order to promote compliance with procurement statutes and regulations" (31 U.S.C. 3554(b)(1)). The agency must report to the Comptroller General if it has not fully implemented those recommendations within 60 days (Section 3554(e)(1)). Although the Comptroller General may not insist that the agency comply with his recommendations, he may award a prevailing protester its bid-preparation costs, as well as attorneys' fee and costs incurred in pursuing the protest (Section 3554(c)(1)). Such an award must be paid by the agency "out of funds available * * * for the procurement of property and services" (Section 3554(c)(2)). /5/ b. The Comptroller General's practice of entertaining bid protests predates the enactment of CICA in 1984. The practice originally was an outgrowth of his authority to "settle" accounts (31 U.S.C. 3526), the rationale being that the Comptroller General was offering an opinion on what he considered to be "required of a procurement official in order to clear a public account." Wheelabrator Corp. v. Chafee, 455 F.2d 1306, 1313-1314 (D.C. Cir. 1971). Prior to CICA, however, the Comptroller General had no authority to direct an agency to cease the award or performance of a contract while he had a protest under consideration. 36 Fed. Reg. 24791 (1971). Rather, the Comptroller General's pre-CICA regulations provided that if a protest was filed with the General Accounting Office (GAO) before the contract was awarded, "the agency will not make an award prior to resolution of the protest except as provided in the applicable procurement regulations" (4 C.F.R. 21.4 (1984); see Robert E. Derecktor of Rhode Island, Inc. v. Goldschmidt, 506 F. Supp. 1059, 1061-1062 (D.R.I. 1980)). The applicable "procurement regulations" for executive agencies were contained in the Federal Acquisition Regulation (FAR), which is promulgated jointly by DOD, NASA, and the General Services Administration (GSA) to ensure uniformity in contracting throughout the Executive Branch (see 48 C.F.R. 1.102). The relevant pre-CICA section of the FAR provided that when a protest was received by either the agency or GAO prior to award of the contract, the "award shall not be made until the matter is resolved, unless the contracting officer determines that (i) (t)he materials and services to be contracted for are urgently required; (ii) (d)elivery or performance will be unduly delayed by failure to make award promptly; or (iii) (a) prompt award will otherwise be advantageous to the Government" (48 C.F.R. 14.407-8(b)(4) (1984); see also id. Section 14.407-8(b)(3)). /6/ This standard was far less restrictive than the "urgent and compelling circumstances" test under CICA (31 U.S.C. 3553(c)(2)). Moreover, the FAR did not require that performance be halted if a protest was filed with the agency or GAO after the contract was awarded; rather, the FAR left the handling of post-award protests to the contracting agency, with the suggestion that the contracting officer seek the contractor's agreement to suspend performance pending resolution of the protest (48 C.F.R. 14.407-8(c) (1984)). The bid-protest provisions of CICA were intended to change the fact that "GAO ha(d) no power to stop a contract award or contract performance while a protest is pending" (H.R. Rep. 98-1157, supra, at 24). B. The Response To The Stay Provisions By The President And Other Executive Officials When the President signed the Deficit Reduction Act of 1984, he "vigorously object(ed)" to the provision of CICA that "unconstitutionally attempt to delegate to the Comptroller General of the United States, an officer of Congress, the power to perform duties and responsibilities that in our constitutional system may be performed only by officials of the executive branch" (20 Weekly Comp. Pres. Doc. 1037 (July 18, 1984.)) /7/ Accordingly, the President instructed the Attorney General "to inform all executive branch agencies as soon as possible with respect to how they may comply with the provisions of this bill in a manner consistent with the Consitution" (ibid.). In response to the President's directive, the Attorney General issued an opinion on October 17, 1984, in which he concluded that the authorization for the Comptroller General to affect the timing of contracts between Executive Branch agencies and private parties is unconsitutional and is inseverable from the remainder of the stay provisions in 31 U.S.C. 3553(c) and (d) (J.A. 53, 57). /8/ On November 21, 1984, the Attorney General formally conveyed these conclusions to the Speaker of the House of Representatives and the President of the Senate, pursuant to statutory requirements that he report to Congress whenever the Department of Justice will not defend the constitutionality of an Act of Congress (J.A. 56-67). Pet. App. 117a-118a. Based on the Attorney General's legal conclusions, the Director of the Office of Management and Budget (OMB) instructed all Executive Branch agencies to preceed with the procurement process "as though no (stay) provisions were contained in the Act," although he stated that the agencies "may voluntarily agree to stay procurements pending the resolution of bid protests" and should cooperate with the Comptroller General's investigation of bid protests (OMB Bull. No. 85-8, at 2 (Dec. 17, 1984); Pet. App. 83a-84a n.10; J.A. 52, 54). This position was implemented in CICA-related amendments to the FAR issued in January 1985, which stated that executive agencies need not comply with the stay provisions of CICA, but instead should follow the pre-CICA standards in the FAR governing the award or performance of a contract when a bid protest is pending. 50 Fed. Reg. 2271 (1985), adding 48 C.F.R. 33.104 (preamble), (b) and (c). As the Attorney General explained in his letter to the Speaker of the House and the President of the Senate, the Executive Branch pursued this course in order to "best assure a rapid and definitive judicial resolution of th(e) constitutional issues," since "(a)ny bid protester who is who is aggrieved by an Executive agency's failure to comply with (the CICA stay) provisions may raise the constitutional issues for judicial resolution" (J.A. 67). See Pet. App. 118a. C. The Proceedings In This Case 1. On November 17, 1984, the Army Corps of Engineers solicited bids for the repair of sewer lines at the United States Military Academy at West Point, New York. The invitation required submission of a bond guaranteeing 20% of the bid amount. When the sealed bids were opened, respondent Ameron was the apparent low bidder, with an offer of $1,033.00, approximately $200,000 less than that of the next lowest bidder, respondent Spiniello Construction Company. However, the dollar amount of the bond submitted by Ameron had been altered. Because there was no indication that the surety had agreed to be bound by the change, the Corps of Engineers rejected Ameron's bid, relying on the consistent view of the Corps and the Comptroller General that such a bid is nonresponsive. The contract therefore was awarded to Spiniello. Pet. App. 3a-4a, 110a-111a; J.A. 32-33; C.A. App. 55-72. 2. a. On March 1, 1985, within ten days of the award to Spiniello, Ameron filed a protest with the Comptroller General (C.A. App. 47-49). Three days later, Ameron filed this action challenging the contract award (id. at 4-10). In an opinion dated March 27, 1985, the district court held that Ameron was not entitled to a preliminary injunction based on the merits of its challenge (Pet. App. 112a-115a), because the alteration of the bond created doubt about the surety's obligations and therefore "clearly justified" the Corps of Engineers' rejection of Ameron's bid (id. at 115a). But the court nevertheless entered a preliminary injunction barring Spiniello from performing any work under the contract until the Comptroller General ruled on Ameron's bid protest raising the identical issue (id. at 133a-134a). The court was unpersuaded by petitioners' contention that the CICA provisions requiring such a delay are unconstitutional because they vest the Comptroller General, an officer of the Legislative Branch, with the power to alter the legal rights, duties, and relations of persons outside that Branch (id. at 112a, 122a-123a, 129-130a). The court acknowledged that the Comptroller General "exercises authority over the Executive Branch" under CICA (id. at 128a), but it believed that the Comptroller General "may exercise law enforcement functions" (id. at 126a) because he is appointed by the President, which the court found sufficient to make him an officer of the Executive Branch (id. at 125a-128a). b. The Comptroller General denied Ameron's bid protest on April 29, 1985, almost two months after it was filed. Like the Corps of Engineers and the district court, the Comptroller General concluded that "Ameron's bid was properly rejected as nonresponsive" because of the alteration of the bond. In re Ameron, Inc., No. B-218262 (J.A. 10-13). The district court then made a final disposition of this case in an opinion and orders dated May 28, 1985 (Pet. App. 135a-150a). First, the court granted summary judgment in favor of the Corps of Engineers on Ameron's challenge to the award of the contract to Spiniello (id. at 137a-148a). Second, the court formally declared that the stay provisions of CICA are constitutional and granted summary judgment on that issue in favor of Ameron and the Senate and the Speaker and Bipartisan Leadership Group of the House of Representatives, who had been permitted to intervene (id. at 146a, 149a-150a; see C.A. Supp. App. 41-42). Third, the court entered a permanent injunction that (i) barred the Director of OMB and the Secretary of Defense from applying OMB Bulletin 85-8 or the January 1985 amendments provisions of CICA, and (ii) directed them "to secure the issuance of regulations which comply with and implement 31 U.S.C. Section 3553" (Pet. App. 140a-146a, 150a). c. In response to the district court's broad injunction and the advice of the Attorney General that executive agencies should comply with the CICA stay provisions pending the appeal in this case, the Director of OMB withdrew OMB Bulletin 85-8 (OMB Bull. No. 85-17 (June 4, 1985)) and DOD, NASA and GSA amended the FAR to require executive agencies to stay the award or performance of a contract when a protest is filed with the Comptroller General, unless one of the exceptions in CICA itself is satisfied. 50 Fed. Reg. 25680-25681 (1985); see 48 C.F.R. 33.104(b) and (c). 3. In an opinion dated March 27, 1986, the court of appeals affirmed the district court's holding that the CICA stay provisions are constitutional (Pet. App. 59a-100a). The court of appeals first held that the Comptroller General's ruling on Ameron's protest did not render the case moot, because the question of the constitutionality of CICA is capable of repetition yet evading review (id. at 66a, citing Murphy v. Hunt, 455 U.S. 478, 482 (1982), and Roe v. Wade, 410 U.S. 113, 125 (1973)). The court reasoned that the issue would evade review because protest ordinarily will be resolved by the Comptroller General within 90 days, and tha the controversy is capable of repetition because Ameron is "a company frequently seeking government contracts" and had "represented that it is likely to be faced with a similar situtation again: desiring to protest a contract decision but being unable to obtain the statutorily guaranteed stay while its protest is being reviewed" (Pet. App. 66a). /9/ On the merits, the court declined to reach the question whether the authorization in 31 U.S.C. 703(e)(1) for Congress to remove the Comptroller General is constitutional, because it believed that question was not ripe judicial resolution in the absence of an attempt by Congress to remove the Comptroller General (Pet. App. 72a-74a). The court also noted the parties' agreement that "the key issue in this case is the characterization of the Office of the Comptroller General," since "(i)f the Comptroller General, as the Army argues, is deemed to be an agent of Congress, then his possession of executive powers and duties is arguably unconstitutional" (id. at 68a). But it avoided this difficulty by characterizing the Comptroller General "as a part of a headless 'fourth branch' of government consisting of independent agencies having significant duties in both the legislative and executive branches but residing not entirely within either" (id. at 76a). For this reason, the court held that "the Comptroller General may constitutionally exercise executive functions in reviewing bid protests" (id. at 77a). /10/ The court accordingly affirmed the district court's declaratory judgment that the CICA stay provisions are constitutional, although it narrowed the scope of the injunctive relief (id. at 80a-88a, 102a, 104a). /11/ 4. After the panel rendered its first opinion, this Court handed down its decision in Synar. The Court held in Synar that the Blanced Budget and Emergency Deficit Control Act of 1985, Pub. L. No. 99-177, Tit. III, 99 Stat. 1038, violated the separation of powers by vesting executive powers in the Comptroller General, because Congress has reserved the power to remove the Comptroller General and therefore maintains influence over him. Slip op. 10-16; id. at 6-11 (Stevens, J., concurring in the judgment) (the Comptroller General is an agent of Congress). 5. In light of Synar, the court of appeals granted rehearing and, on December 31, 1986, rendered a new opinion (Pet. App. 1a-58a). The court conceded that "(t)he Supreme Court's decision in Synar was contrary to the reasoning of the panel majority in the first Ameron opinion: the Supreme Court held that for separation of powers purposes the Comptroller General must be regarded as an agent of the legislative branch, and therefore that the Comptorller may not exercise any power which Congress itself may not possess" (id. at 4a-5a; accord, id. at 39a-40a (Garth, J., concurring)). /12/ But the panel nevertheless again held that the stay provisions of CICA are constitutional. a. The majority acknowledged that the Comptroller General's actions under CICA have a binding effect on the timing of the award or performance of a contract between an executive agency and a private party, because "a contract cannot be executed until the protest has been resolved" (Pet. App. 10a). But the court rejected the contentions (i) that INS v. Chadha, 462 U.S. 919 (1983), bars Congress from bringing about that result except by the normal legislative process of bicameral action and presentment to the President, and (ii) that Synar bars Congress from circumventing these limitations by delegating to its agent, the Comptroller General, the power to take action that has a legal effect outside the Legislative Branch (Pet. App. 23a). The court reasoned that Congress's "legislative Powers" under the Constitution include the power to investigate -- and, the court believed, to influence -- contract awards by executive agencies, and that Congress, in enacting CICA, had merely delegated those powers to the Comptroller General (id. at 25a-26a). In the court's view, Congress may "delay procurement activity" -- by means of a stay terminable by an agent of Congress -- in pursuit of its goals of investigating and influencing the actions of an executive agency (id. at 26a & n.9). The majority also rejected the contention that CICA impermissibly authorizes the Comptroller General to participate in the execution of the procurement laws (Pet. App. 27a-31a). The court found it significant that the Comptroller General does not initiate procurement decisions, but rather, "like a court," acts "only in those cases which other parties submit for decision" (id. at 29a); that the agency may override a stay, albeit only in "limited" circumstances (id. at 29a-30a); and that the agency is not bound by the Comptroller General's decision on the protest (id. at 30a). The majority acknowledged that Congress conferred bid-protest powers on the Comptroller General for the specific purpose of causing procurement officials to "go about their business differently" (id. at 34a) and that those officials might "exercise their discretion in ways which are not required by the procurement laws, and which they would not otherwise have chosen, in order to minimize conflict with the Comptroller General" (id. at 15a, 34a). But, adopting a balancing approach (id. at 32a-33a), the majority concluded that this intrusion by the Comptroller General into the procurement process was minimal and was justified by Congress's desire to investigate contract actions while they are still remediable (id. at 34a-36a). b. In a concurring opinion (Pet. App. 38a-44a), Judge Garth believed that the court should attempt to measure "the degree of the alleged intrusion into the authority of the coordinate branch" (id. at 41a). This he regarded as "more of an empirical exercise * * * than it is a theoretical exercise in questioning whether, in embryo, a dangerous violation of principle lurks beneath an apparently benign legislative mechanism" (ibid. (imphasis in original)). Applying that test, Judge Garth concluded that "the stay power granted to the Comptroller General is not of such magnitude that it should be stricken as unconstitutional" (Id. at 44a). /12/ SUMMARY OF ARGUMENT I. The stay provisions of the Competition in Contracting Act authorize the Comptroller General, an agent of Congress who is subject to removal only by Congress, to control the timing of the award or performance of a contract between an agency of the Executive Branch and a private party. This intrusion by the Comptroller General into the execution of the procurement laws cannot be reconciled with the separation of powers between the Legislative and Executive Branches or with this Court's decisions in INS v. Chadha, 462 U.S. 919 (1983), and Bowsher v. Synar, No. 85-1377 (July 7, 1986). The Court held in Chadha that Congress may alter the legal rights, duties, and relations of persons outside the Legislative Branch only by passing a law, in conformity with the bicameralism and presentment requirements of the Constitution. An Synar makes clear that Congress cannot circumvent those requirements by delegating power to the Comptroller General, since Congress retains influence over the Comptroller General by virtue of its statutory authority to remove him from office. The court of appeals erred in holding that the CICA stay provisions could be sustained as furthering Congress's legislative power to investigate procurement by the Executive Branch. Congress's implied power of investigation, like its expressly enumerated prowers, is subject to limitations in the Constitution itself, including the fundamental principle of separation of powers that bars an agent of Congress from controlling activities in an executive agency. Nor can the stay provisions be sustained as furthering a supposed power of Congress, acting through the Comptroller General, to "influence" activities in the Executive Branch. Although Members, committees and agents of Congress often seek to exert such influence, that practice does not find recognition in the Constitution, and it therefore does not furnish a rationale for permitting the Comptroller General to continue a stay of procurement activities by an executive agency until he has had an opportunity to influence them. The CICA stay provisions differ from a report-and-wait mechanism, which mandates postponement of action by the Executive Branch for a determinate period of time specified in a duly enacted law, in order to afford Congress an opportunity to overturn the action by passing a new law. CICA, by contrast, delegates to the Comptroller General, an agent of Congress, the power to determine the length of a stay of procurement activity on a case-by-case basis and is not intended to afford Congress an opportunity to act by legislation. The CICA stay provisions likewise cannot be sustained under a balancing test drawn from Nixon v. Administrator of Gen. Services, 433 U.S. 425 (1977), or CFTC v. Schor, No. 85-621 (July 7, 1986). Those cases did not involve a violation of the structural provisions of the Constitution or an effort by Congress to impose its will on a coordinate Branch by a means short of a duly enacted law, as in Chadha, Synar and this case. But even if a balancing test were appropriate, the interest in facilitating bid-protests does not weigh significantly in favor of vesting an agent of Congress with control over Executive Branch activities, since Congress, without violating the separation of powers, can provide for bid protests to be entertained by boards of contracts appeals in executive agencies or by the courts, as indeed CICA also contemplates. II. The stay provisions are severable from the remainder of the procurement-protest title of CICA, because that remainder is fully operative as a law and serves the important purpose of regulating the Comptroller General's investigation of bid protests. The Court should decline the suggestion that it sever a provision in another statute -- the authorization for Congress to remove the Comptroller General, which was first enacted in the Budget and Accounting Act of 1921 -- in lieu of severing the stay provisions in CICA itself. As this Court recognized in Synar, the removal provision was an important feature of the 1921 Act, because it enables Congress to influence the Comptroller General's various investigatory activities. Moreover, legislation enacted since 1921 confirms Congress's intention that the Comptroller General be an officer of the Legislative Branch who performs his duties on behalf of Congress. Because Congress as a whole gave little attention to the CICA stay provisions when they were enacted, there is no reson to believe that Congress wanted the courts to transform the Office of Comptroller General in order to save the stay provisions. ARGUMENT I. THE STAY PROVISIONS OF THE COMPETITION IN CONTRACTING ACT VIOLATE THE SEPARATION OF POWERS UNDER THE CONSTITUTION A. Chadha and Synar Establish That Congress May Not Vest The Comptroller General With The Power To Control The Timing Of Contracts Between Executive Branch Agencies And Private Parties 1. The first three Articles of the Constitution "'divide the delegated powers of the * * * Federal Government into three defined categories, Legislative, Executive, and Judical'" (Synar, slip op. 6 (quoting Chadha, 462 U.S. at 951)), and they assign each category of delegated powers to a separate Branch: "All legislative Powers * * * shall be vested in a Congress of the United States" (Art. I, Section 1); "The executive Power shall be bested in a President of the United States of America" (Art. II, Section 1, Cl. 1); and "The judicial Power of the United States shall be vested in one supreme Court, and in such inferior Courts as the Congress may from time to time ordain and establish" (Art. III, Section 1). The Constitution also prescribes the manner in which each of the three separate Branches may exercise its specially assigned powers. The legislative power granted by Article I is "'the authority to make laws.'" Buckley v. Valeo, 424 U.S. 1, 139 (1976) (quoting Springer v. Phillippine Island, 277 U.S. 189, 202 (1928)). Indeed, as Alexander Hamilton put it in explaining the import of the Necessary and Proper Clause (Art. I, Section 8, Cl. 18): What is a LEGISLATIVE power but a power of making LAWS? What are the means to execute a LEGISLATIVE power but LAWS? The Federalist No. 33, at 202 (C. Rossiter ed. 1961); accord, M'Culloch v. Maryland, 17 U.S. (4 Wheat.) 316, 412 (1819) ("Could it be necessary to say, that a legislature should exercise legislative powers through the enactment of laws requires the approval of both Houses and presentment to the President (Art. I; Art. I, Section 7, Cls. 2 & 3). These procedural hurdles were intended to guard against oppressive, improvident or ill-considered measures and thereby to stand as formidable barriers between the Legislative Branch on the one hand and the coordinate Branches and the people on the other. Chadha, 462 U.S. at 946-951. The judicial power conferred by Article III, in contrast, limits the federal courts to the adjudication of "Cases" and "Controversies" that are properly brough before them by parties outside the Judicial Branch. This is an essential institutional limitation on the ability of the courts to take action that may profoundly affect the interests of the coordinate Branches and individual members of society (Valley Forge Christian College v. Americans United for Separation of Church & State, Inc., 454 U.S. 464, 471-474 (1982)), and it reflects "'concern about the proper -- and properly limited -- role of the courts in a democratic society'" (Allen v. Wright, 468 U.S. 737, 750 (1984), quoting Warth v. Seldin, 422 U.S. 490, 498 (1975)). Similarly, the executive power granted by Article III is subject to its own limitations, most prominently the fact that, aside from functions conferred on the President by the Constitution itself, the Executive may act only pursuant to and in the manner prescribed by a previously enacted law. See Art. II, Section 3 (the President "shall take Care that the Laws be faithfully executed"); Art. I, Section 9, Cl. 7 ("No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law"); Synar, slip op. 18 ("undoubtedly the content of the Act determines the nature of the executive duty"); cf. Youngstown Sheet & Tube Co. v. Sawyer, 343 U.S. 579, 587-588 (1952). The Framers thus made clear that the three Branches are to "be largely separate from one another" (Buckley, 424 U.S. at 120), and they expressly identified those occasions on which one Branch may depart from its accustomed mode of operation and play a role in the actions of another Branch -- such as the President's veto power (Art. I, Sections 7) and the Senate's advice and consent function (Art. II, Section 2, Cl. 2). But where the Constitution does not expressly authorize one Branch to participate in the affairs of another, such participation is prohibited. Synar, slip op. 7; Chadha, 462 U.S. at 955-956; Buckley, 424 U.S. at 127; see The Federlist Nos. 47 & 48 (J. Madison). This division of powers among the Branches -- and the limitations on the manner in which each Branch may bring its will to bear on the coordinate Branches and the people -- were intended by the Framers to be "the foundation of a structure of government that would protect liberty." Synar, slip op. 6. Under that structure, once Congress has made its policy choice and has passed a law, the exercise of the legislative power is completed and Congress's role with respect to the measure is at an end. Any official responsibility for implementation of the law by the United States Government thereafter devolves upon the Executive Branch in carrying the law into effect, and upon the Judicial Branch in deciding cases of controversies arising under the law. As we explain below, the stay provisions of CICA have two independent but overlapping defects under these separation-of-powers priciples: first, they permit Congress (through the Comptroller General) to intervene in the execution of the law by contracting agencies; and second, they permit Congress (through the Comptroller General) to take action that affects not only executive agencies, to take action that affects not only executive agencies, but also private parties, without following the "finely wrought and exhaustively considered" procedures (Chadha, 462 U.S. at 951)-bicameral approval and presentment to the President-that the Constitution prescribes as necessary prerequisites for Congress to work its will. 2.a. The Framers were especially attentive to Montesquieu's warning that "'there can be no liberty where the legislative and executive powers are united in the same person, or body of magistrates'" (The Federalist No. 47, at 302 (J. Madison)), and they therefore "provided a vigorous legislative branch and a separate and wholly independent executive branch, with each branch responsible ultimately to the people" (Synar, slip op. 6). The President appoints the Officers of the United States who assist him in the execution of the laws, subject to the advice and consent of the Senate (Art. II, Section 2, Cl. 2), and Congress may remove those Officers only upon impeachment by the House and conviction by the Senate (Art. I, Section 2, Cl. 5; Art. I, Section 3, Cl. 6). In Synar, the Court Concluded that "(a) direct congresssional role in the removal of officers charged with the execution of the laws beyond this limited one (of impeachment) is inconsistent with the separation of powers" (slip op. 7). As the Court noted in Synar, this limitation on Congress's power was confirmed by the First Congress's explicit rejection of a congressional role in the removal process (id. at 7-8), and was recognized by the Court's own decisions in Myers v. United States, 272 U.S. 52 (1926), and Humphrey's Executor v. United States, 295 U.S. 602, 626-627 (1935). Slip op. 8-10. These principles were found in Synar to be fully applicable to the Comptroller General, who may be removed from office only by joint resolution of Congress (or impeachment). 31 U.S.C. 703(e)(1). It is irrelevant, the Court explained, whether it seems likely that Congress will actually remove the Comptroller General, because "(t)he Framers recognized that, in the long term, structural protections against abuse of power were critical to preserving liberty. In constitutional terms, the removal powers over the Comptroller General's office dictate that he will be subservient to Congress." Slip op. 14. Moreover, the Court stressed that the removal provision was included in the Budget and Accounting Act, of 1921 (Section 303, 42 Stat. 23-24) for the very purpose of ensuring congressional control over the Comptroller General (slip op. 12-13), and that "political realities" refute the notion that the Comptroller General is free from influence by Congress, because "Congress has consistently viewed the Comptroller General as an officer of the Legislative Branch" (id. at 14-15); id. at 11 (Stevens, J., concurring in the judgment) ("the Comptroller General is properly characterized as an agent of the Congress"). On this basis, the Court held in Synar that Congress had acted unconstitutionally in conferring powers on the Comptroller General under the Balanced Budget and Emergency Deficit Control Act that were executive in nature. By providing for participation in the execution of the Act by an officer who was subject to removal by Congress, "Congress in effect ha(d) retained control over the execution of the Act and ha(d) intruded into the executive function" (slip op. 18); see id. at 16 (the Comptroller General "may not be entrusted with executive powers"). b. The reasoning of Synar compels the conclusion that the stay provisions of CICA are also unconstitutional. Congress could, of course, have directed that the award or performance of some or all government contracts must be delayed for a definite period prescribed by law, just as in Synar Congress could have specified by law the exact amount of the budget reductions. But that is not what Congress did in CICA. Rather, as in Synar, Congress eschewed any definite rule in the law itself and instead vested the Comptroller General with authority to determine the application of the law to particular Executive Branch actions. Under CICA, once a bid protest is filed with the Comptroller General, the contract may not be awarded or if the contract has already been awarded, the agency must direct the contractor to cease performance -- until the Comptroller General renders his decision on the protest. 31 U.S.C. 3553(c) and (d). As a result (and in the absence of exigent circumstances permitting the contracting agency to override the stay under 31 U.S.C. 3553(c)(2) or (d)(2)), the timing of the contract is legally subject to the complete control of the Comptroller General: he may dismiss the protest at any time if he finds that it is "frivolous" or "does not state a valid basis for protest" (Section 3554(a)(3)); he may designate the case for expedited disposition under the "express option" (Section 3554(a)(2); he may delay his decision for 90 working days (Section 3554(a)(1)); or he may extend that time still further if he determines that "specific circumstances of the protest require a longer period" (Section 3554(a)(1)). By thus vesting in the Comptroller General the power to control the timing of a contract between an agency of the Executive Branch and a private party, Congress has "retained control over the execution of the Act" and "intruded into the executive function" (Synar, slip op. 18). Indeed, the legislative history establishes that the very purpose of CICA 's bid-protest provisions was to enable the Comptroller General to intervene in and affect the execution of the procurement laws. As the Conference Report explains, the bid-protest provisions were intended by Congress to be an "enforcement mechanism * * * to insure that the madate for competition is enforced" (H.R. Conf. Rep. 98-861, supra, at 1435). Similarly, the House Report observes that CICA responded to complaints that "GAO has no power to stop a contract award or contract performance while a protest is pending" (H.R. Rep. 98-1157, supra, at 24) and that CICA therefore "establishes an enforcement mechansim which prohibits the award or performance of a contract while a protest is pending" (id. at 25). The court of appeals also acknowledged that Congress conferred bid-protest powers on the Comptroller General for the purpose of causing procurement officials to "go about their business differently" (Pet. App. 34a) and that CICA gives the Comptroller General leverage over the contracting process because procurement officials might find it necessary as a practical matter to exercise their discretion so as to minimize conflict with the Comptroller General and thereby minimize the potential for delay (ibid.). The Constitution prohibits Congress from assuming, either for itself or for its agent, such a role in the execution of the laws. c. Under our system of separated powers, if there is to be a check, external to the Executive Branch, on the execution of the laws, that check must come not from the Legislative Branch (except through the enactment of a new law), but from the Judicial Branch, in a case properly brought before it by a party aggrieved by the executive action. See Chadha, 462 U.S. at 957 n.22; id. at 961-967 (Powell, J., concurring in the judgment). Congress recognized that the Comptroller General's role under CICA would be essentially identical to that of a court (or an adjudicatory body within an executive agency, such as a board of contract appeals (see p. 43, infra)), and that, like a court, he must seek to ensure "that vendors wrongly excluded from competing for government contracts receive equitable relief" (H.R. Conf. Rep. 98-861, supra, at 1435). See H.R. Rep. 98-1157, supra, at 23 ("Although the courts also decide constractual disputes, GAO has become the principal forum for resolving such procurement protests."). /15/ Because of this similarity of functions, Congress felt compelled to provide -- in a section entitled "(n)onexclusivity of remedies"-that the bid -- protest provisions of CICA "do() not give the Comptroller General exclusive jurisdiction over protests" and do not "affect the right of any interested party to file a protest with a contracting agency or to file an action in a district court of the United States of the United States Claims Court" (31 U.S.C. 3556). See also 4 C.F.R. 21.9(a) (GAO will dismiss a bid protest would facilitate his performance of adjudicatory functions that are essentially identical to those assigned to the Executive and Judicial Branches -- rather than facilitate the performance of the legislative function of passing new laws. /16/ Chadha, 462 U.S. at 952-954; Synar, slip op. 21 (Stevens, J., concurring in the judgment). Synar does not permit an officer who is subservient to Congress to intervene in this manner in the affairs of another Branch. 3. The decision below likewise cannot be squared with Chadha. There, the Court held unconstitutional a "legislative veto" provision that permitted one House of Congress to override the Attorney General's decision to suspend the deportation of an alien. The Court reasoned that the one -- House veto conflicted with the constitutional requirement that all actions by the Legilsative Branch that alter "the legal rights, duties, and relations" of persons outside that Branch must be taken by Congress it self, pursuant to the lawmaking provisions in Article I (462 U.S. at 944-959). The Court explained (id. at 954-955 (footnote omitted)): Disagreement with the Attorney General's decision on Chadha's deportation -- that is, Congress' decision to deport Chadha -- no less than Congress' original choice to deligate to the Attorney General the authority to make that decision, involves determinations of policy that Congress can implement in only one way; bicameral passage followed by presentment to the President. Congress must abide by its delegation of authority until that delegation is legislatively altered or revoked. In Synar, the Court relied on Chadha to reinforce its conclusion that Congress may not vest power in the Comptroller General to participate in the execution of the laws (slip op. 11): To permit an officer controlled by Congress to execute the laws would be, in essence, to permit a congressional veto. Congress could simply remove, or threaten to remove, an officer for executing the laws in any fashion found to be unsatisfactory * * * . Of course, all three Branches may take action that has some impact on the legal rights, duties, and relations of persons outside that branch. But as Chadha and Synar recognize, in order for the actions of any one Branch to have a legally binding effect on persons outside that Branch, the action must be consistent with constitutional limitations unique to that Branch. In the case of the Legislative Branch, this means that any action that will have such an effect must be approved by both Houses of Congress and presented to the President. The reasoning of Chadha is fully applicable here. The actions of the Comptroller General under the stay provisions of CICA have a direct legal effect on the "rights, duties, and relations of persons, including * * * Executive Branch officials and (private parties), all outside the lengthening the stay, the Comptroller General, as an responsible contracting officials in the Executive Branch to award or direct performance of the contract at whatever time existing law would otherwise permit. The Comptroller General's actions also affect the rights of private parties -- in this case: (i) the successful bidder (Spiniello), which was denied the benefit of the contract for as long as the Comptroller General chose to keep the protest under submission, but then was granted the right to proceed when the Comptroller General rendered his decision; and (ii) the protester (Ameron), which obtained the benefit of a stay of performance simply by invoking the jurisdiction of the Comptroller General, but then lost its right to a stay by the action of the Comptroller General in ruling on the bid protest. In an analogous case, the District of Columbia Circuit invalidated a statutory provision that "grant(ed) the Appropriations Committees (of the House and Senate) the power to lift a congressionally-imposed restriction on the use of appropriated funds." AFGE v. Pierce, 697 F.2d 303, 306 (1982). Because Synar establishes that "the Comptroller General may not exercise any power which Congress itself may not possess" (Pet. App. 5a), the rationale of Pierce requires the conclusion that the Comptroller General likewise cannot be given the power to "lift the congressionally-imposed restrictions" on the timing of government contracts. Conversely, if the stay provisions of CICA are constitutional, then there would appear to be no reason why Congress could not also pass a statute that in effect delegated the power given to the Comptroller General under CICA to one House or committee of Congress. The leverage over the actions of the Executive Branch that would be afforded by vesting Congress (or its Houses, committees, and agents) with the authority to determine when executive actions may be implemented would substantially erode the structural protections of liberty that are afforded by the separation of powers under the Constitution and this Court's decisions in Chadha and Synar. 4. Respondents seize upon the Court's statement in Synar that the Comptroller General there was given "ultimate authority" to determine the amount of the budget cuts. Slip op. 17. In this case, respondents argue, the Comptroller General does not have such "ultimate authority" because his decision on the merits of the bid protest is not binding on the contracting agency. Senate & Ameron Br. in Opp. 6; Spkr. et al. Br. in opp. 13, 15; see also Lear Siegler, slip op. 3544-3547, 3552. We of course agree with respondents' apparent concession that, under Synar, Congress could not require the contracting agency to follow the decision of the Comptroller General on the merits of a bid protest. See Synar, slip op. 11 & n.5 (Blackmun, J., dissenting); 42 Op. Att'y Gen. 405, 415-416 (1969); Miguel v. McCarl, 291 U.S. 442, 454, 456 (1934); cf. S. Rep. 95-715, 95th Cong., 2d Sess. 17, 23-24 (1978). The Comptroller General's decision in such a situation would embody his interpretation of the applicable law and his ascertainment of the relevant facts -- both of which are integral aspects of the execution of the laws (Synar, slip op. 17) -- and his ruling would operate as a directive to the contracting agency in the same manner as the deficit reduction "report" at issue in Synar (see id. at 17-18). But "congressional meddling with the administration of the law outside of the legislative process is impermissible" (id. at 11 (White, J., dissenting)) whenever it has a legally binding impact in the course of that process, even if it stops short of directing the final disposition. For example in Synar itself, Congress clearly would have been barred from authorizing the Comptroller General to direct the President to sequester funds on a temporary basis, even if the President were free to spend the sequestered funds after the directive expired. Similarly, in Chadha, Congress would have been barred from authorizing one of its Houses to pass a resolution that merely postponed the effective date of the Attorney General's suspension of deportation (and thereby postponed the alien's eligibility for adjustment of status and attendant benefits), even if the Attorney General were free to give effect to his order at a later date. In either case, the directive by the Comptroller General or one House of Congress would have had a binding effect on the "rights, duties, and relations" of the responsible executive official and private parties under existing law -- just as a preliminary injunction entered by a court imposes legal obligations on the defendant and alters the legal relations of the parties for as long as it remains in effect. Walker v. City of Birmingham, 388 U.S. 307 (1967); United States v. United Mine Workers of America, 330 U.S. 258, 289-295 (1947). Similarly, under CICA, the fact that the contracting agency and the successful bidder will not be permanently barred from proceeding with the contract once the Comptroller General lifts the stay does not undo the fact that they are prevented from proceeding for as long as the Comptroller General retains the matter under submission. In an analogous situation, it clearly would be regarded as a radical departure from separation-of-powers principles if Congress passed a statute that (i) provided for a stay of the mandate of an Article III court upon the motion of the losing party to case in order to allow that party to file a "protest" of the court's decision with the Comptroller General, and (ii) vested the Comptroller General with discretion to determine the duration of the stay necessary to enable him to render a decision and submit an amicus "recommendation" to the court. The fact that the Comptroller General would not have "ultimate authority" (in the sense that respondents use that term) over the judgment of the Article III court (cf. Hayburn's Case, 2 U.S. (2 Dall.) 409 (1927); United States v. O'Grady, 89 U.S. (22 Wall.) 641, 647-648 (1874); Chicago & Southern Air Lines v. Waterman S.S. Corp., 333 U.S. 103, 113-114 (1948)) would not eliminate the distinct separation-of-powers defect arising from the Comptroller General's ability to control the timing of the Judicial Branch's disposition of a pending matter. The same defect is present where the matter is pending before the Executive Branch. The foregoing discussion makes clear that the term "ultimate authority" was not used in Synar to suggest that the separation-of-powers principles articulated by the Court apply only where Congress has authorized the Comptroller General to make a permanently binding disposition of a matter pending before the Executive Branch. Rather, the Court's use of the term "ultimate authority" merely emphasized that no other officer, not even the President of the United States, could overrule or disregard the particular action of the Comptroller General there at issue, which concerned the amount of budget cuts for the fiscal year. This case concerns the timing of executive action, and under CICA, the Comptroller General, not the responsible officer of the Executive Branch, has the "ultimate authority" over that issue for as long as the Comptroller General retains the bid protest under submission. Congress's vesting of such interim control in its agent likewise violates the separation of powers, because "as Chadha makes clear, once Congress makes its choice in enacting legislation, its participation ends. Congress can thereafter control the execution of its enactment only indirectly -- by passing new legislation" (Synar, slip op. 18). The procurement decision by an Executive agency involves not only the determination of what to purchase and from whom, but also when the contract shall be awarded or the performance of the contract shall commence. Such questions of timing are essential aspects of administrative decisionmaking, and delay in fact can seriously disrupt the contracting process of executive agencies. See Department of HHS v. FLRA, No. 86-2619 (4th Cir. Apr. 19, 1988) (en banc), slip op. 17. For this reason, under Chadha and Synar, Congress cannot vest in the Comptroller General the power to control that timing. /17/ B. The Stay Provisions Cannot Be Sustained As A Necessary And Proper Means Of Implementing Congress's Legislative Powers 1. In its first opinion, the court of appeals expressly acknowledged that the Comptroller General's powers under CICA are "executive" in nature (Pet. App. 68a, 77a, 79a; id. at 96a-97a (Becker, J., concurring in part)). The court also appeared to acknowledge that the Comptroller General may not be vested with the executive power to alter the timing of the award or performance of a government contract if, for purposes of constitutional analysis, he is an agent of Congress or is subject to its control by virtue of Congress's power of removal (id. at 68a, 74a-75a, 79a-80a; id. at 97a-98a (Becker, J., concurring in part)). The court avoided that result only by holding that the Comptroller General is part of a "headless 'fourth branch' of government" (id. at 76a, 77a, 78a n.5, 79a). As the panel recognized on rehearing (id. at 4a-5a; see p. 13, supra), that reasoning directly conflicts with Synar. It should have followed inexorably that the CICA stay provisions are unconstitutional. Nevertheless, on rehearing, the court again sustained the stay provisions. This time, it concluded that the Comptroller General's powers under CICA are not 'executive" after all, but that giving him control over the length of a stay of contracting activity instead could be justified as a reasonable means of facilitating Congress's exercise of its "legislative" powers -- principally its power of investigating the activities of contracting agnecies (Pet. App. 23a-26a). To be sure, "the power to investigate is inherent in the power to make laws because '(a) legislative body cannot legislate wisely or effectively in the absence of information respecting the conditions which the legislation is intended to affect or change.'" Eastland v. United States Servicemen's Fund, 421 U.S. 491, 504 (1975) (quoting McGrain v. Daugherty, 273 U.S. 135, 175 (1927)); see also Barenblatt v. United States, 360 U.S. 109, 111 (1959); Watkins v. United States, 354 U.S. 178, 187, 194-195 (1957); Kilbourn v. Thompson, 103 U.S. 168 (1880). And this power permits Congress to conduct "probes into departments of the Federal Government to expose corruption, inefficiency or waste" (Watkins, 354 U.S. at 187), especially since the executive departments are created by law and are the subject of potential legislation in virtually all aspects of their operation (Daugherty, 273 U.S. at 177-178). But the invocation of a proper legislative purpose does not insulate the means by which Congress chooses to exercise its powers from other limitations in the Constitution. M'Culloch v. Maryland, 17 U.S. (4 Wheat.) at 421 (Necessary and Proper Clause permits measures that "are not prohibited, but consist(ent) with the letter and spirit of the constitution"). That principle was applied in the separation-of-powers context in Buckley. There, the Court rejected the contention that because Congress has plenary power to regulate elections, it could provide for congressional appointment of Members of the Federal Election Commission. 424 U.S. at 132-135. The Court stated (id. at 135): Congress could not, merely because it concluded that such a measure was 'necessary and proper' to the discharge of its substantive legislative authority, pass a bill of attainder or ex post facto law contrary to the prohibitions contained in Section 9 of Art. I. No more may it vest in itself, or in its officers, the authority to appoint officers of the United States when the Appointments Clause by clear implication prohibits if from doing so. Likewise, in Chadha, Congress's power over naturalization (Art. I, Section 8, Cl. 4) did not justify the exercise of a one-House veto of an executive decision concerning an alien (see 462 U.S. at 940-941); and in Synar, Congress' power over appropriations (Art. I, Section 9, Cl. 7) did not permit it to give the Comptroller General a role in the execution of appropriations laws (see slip op. 6 (White, J., dissenting)). A fortiori, Congress's power to investigate procurement activities of the Executive Branch -- which, in contrast to the powers at issue in Buckley, Chadha and Synar, is not even expressly mentioned in the Constitution -- furnishes no basis for Congress to enact a mechansim that violates the separation of powers under the Constitution. Cf. Watkins, 354 U.S. at 195-201. Moreover, nothing in the nature of Congress' power of investigation suggests that Congress also possesses, as a necessary incident thereto, the power to control the occurrence of events outside the Legislative Branch while it is investigating them (unless, of course, Congress passes a law regulating those events). To the contrary, an investigator typically takes the facts as he finds them. It follows that right of Congress to confer the power of investigation on its committees or agents, such as the Comptroller General, does not imply a right in Congress to confer on its committees or agents the power to control the unfolding of the subject matter being investigated. /18/ 2. The court of appeals appeared to recognize that the sections of CICA that give the Comptroller General authority to control the timing of the award or performance of a contract cannot be justified on the ground that they assist Congress in carrying out its power of investigation. The court therefore held that the stay provisions could be justified as furthering a supposed power of Congress to attempt to influence activities in the Executive Branch -- a power which, the court reasoned, requires that executive activities be frozen until Congress, through its agent, submits its opinion to the responsible executive official. This reasoning is seriously flawed. Congressional investigation of matters in the Executive Branch and elsewhere stands on a far firmer constitutional footing than do congressional efforts to influence decisions as they are being made in the Executive Branch. In explaining the basis of Congress's authority to investigate, the Court has stated that the Houses of Congress "possess not only such powers as are expressly granted to them by the Constitution, but such auxiliary powers as are necessary and appropriate to make the express powers effective" (Daugherty, 273 U.S. at 173). The power to investigate is one such "auxiliary power." By contrast, the ability to "influence" a coordinate Branch through the submission of advice and recommendations or by other means short of passing a law is not an "auxiliary power" that is necessary to make effective Congress's express power to pass laws. Unlike investigation, through which Congress gathers information for use within its own assigned sphere and which therefore is one step in the lawmaking process, the exertion of direct influence on officials of another Branch bypasses the formal lawmaking process altogether and seeks to affect decisions to be made under existing law and outside of Congress's assigned sphere. It is significant in this respect that where the Framers intended to confer on one of the Branches a formal constitutional role in submitting its advice and recommendations to another Branch, they expressly so provided. Compare Art. II, Section 2, Cl. 2 (the President shall have the power, "by and with the Advice and Consent of the Senate," to appoint officers and make treaties); Art. (II, Section 3 (the President "shall from time to time** * * recommend to (Congress's) Consideration such Measures as he shall judge necessary and expedient"). /19/ The fact that the Constitution does not expressly provide for Congress to give advice and make recommendations concerning matters arising the Executive Branch (other than the nomination and appointment of officers and making of treaties) indicates that Congress has no constitutionally based right, as such, to do so -- although of course the practical dialogue between the political Branches may give rise to numerous occasions for committees, Members and agents of Congress to express their views in a manner that does not rise to the level of recognition in the Constitution itself. The Court in fact has recognized this point in considering the scope of the protection afforded by the Speech or debate Clause, Art. I, Section 6, Cl. 1. As the Court stated in Gravel v. United States, 408 U.S. 606, 625 (1972): "Members of Congress are constantly in touch with the Executive Branch of the Government and with administrative agencies pp they may cajole, and exhort with respect to the administration of a federal statute -- but such conduct, though generally done, is not protected legislative activity." /20/ Accord, United States v. Brewster, 408 U.S. 501, 512-513 (1972); Doe v. McMillian, 412 U.S. 306, 315-316 (1973); Hutchinson v. Proxmire, 443 U.S. 111, 131-133 (1979). We do not suggest that it is imporper for Congress to provide for the Comptroller General to express his view on procurement matters. We suggest only that Congress's interest in exerting influence on the Executive Branch by means short of enacting a law is not not part of the "legislative Powers" conferred on Congress by Article I itself and thus is not an interest of independent constitutional stature. /21/ It necessarily follows that Congress's desire to assure that its agent, the Comptroller General, will have an opportunity to exert influence on decisionmaking by officers in the Executive Branch before they carry their procurement decisions into effect does not justify the breach of fundamental separation-of-powers principles that is occasioned by the provisions of CICA that authorize the Comptroller General to determine the duration of stay of procurement activities. C. The Stay Provisions Cannot Be Sustained By Analogy To "Report And Wait" Provisions Respondents contend (Senate & Ameron Br. in Opp. 4, 7-12; Spkr. et al. Br. in Opp. 7, 13) that the stay provisions of CICA resemble the so-called "report-and-wait" device that was discussed in Sibbach v. Wilson & Co., 312 U.S. 1, 14-15 (1941); Chadha, 462 U.S. at 935 n.9; and Alaska Airlines, Inc. v. Brock, No. 85-920 (Mar. 25, 1987), slip op. 11 & n.12. The two devices are, however, quite different; even the court of appeals concluded that "(t)he stay provision at issue in CICA is not a report and wait provision" (Pet. App. 26a n.9). 1. Under a typical report-and-wait provision, an agency must notify Congress of action it has taken, and the effective date of the action is postponed for a determinate period prescribed by law in order to afford Congress itself an opportunity to overturn it by passing a law. Sibbach, for example, involved the statute providing that the Federal Rules of Civil Procedure promulgated by this Court "'shall not take effect until they shall have been reported to Congress by the Attorney General at the beginning of a regular session thereof and until after the close of such session.'" 312 U.S. at 8 (quoting Act of June 19, 1934, ch. 651, Section 2, 48 Stat. 1064). Similarly, in Chadha, the Court observed that if the legislative veto provision was severed, the remainder of the statutory provision there at issue (8 U.S.C. 1254(c)) would resemble a report-and-wait provision: it would require the Attorney General to report a suspension of deportation to Congress, and the order of deporation would not be cancelled until the close of the following Session of Congress, during which time Congress could enact a law overturning the Attorney General's decision (assuming that no other provision of the Constitution barred Congress from singling out an individual alien in this manner) (462 U.S. at 935 & n.8, 954 n.17). Finally, the statute involved in Alaska Airlines required the Secretary of Labor to transmit proposed regulations to committees of the Senate and House and to wait 30 "legislative days" -- defined to mean days furing which both the House of Senate were in session -- before issuing the regulations in final form. Slip op. 11, & n.12, citing 49 U.S.C. App. 1552(f)(3). Thus, the report-and-wait provisions discussed in Sibbach, Chadha and Alaska Airlines each mandated postponement of action by the Judicial or Executive Branch for a period of time that was specified by Congress itself in the authorizing law. Those statutes did not delegate to an agent of Congress within the Legislative Branch, such as the Comptroller General, the power to decide on a case-by-case basis how long the stay of the decision by a coordinate Branch would last. 2. The Senate and Ameron contend (Br. in Opp. 2-3, 9-10), however, that the CICA stay provisions are comparable to those report-and-wait provisions because the length of the delay was determined by Congress's adjournment at the close of a session (in Sibbach and Chadha) or from day to day (in Alaska Airlines, which established the number of elapsed "legislative days"). Respondents argue that because adjournment is congressional action "short of lawmaking" (Senate & Ameron Br. in Opp. 10), Congress may permit the length of a stay under CICA to be determined by other action of the Legislative Branch short of lawmaking -- namely a decision of the Comptroller General. We may assume for present purposes that the statutes in Sabbach, Chadha and Alaska Airlines that tied the delay of Judicial or Executive Branch action to adjournments by Congress present no constitutional difficulties, although the Court did not actually consider that issue in any of those three cases. /22/ But for a number of reasons, it does not follow that the CICA stay provisions are constitutional. a. The principal purpose of a report-and-wait provision is to is to afford Congress the opportunity to overturn administrative action through the passage of a law, which requires bicameral action and presentment to the President. See Sibbach, 312 U.S. at 14-15 & n.17; Chadha, 462 U.S. at 935 & nn.8, 9; Alaska Airlines, slip op. 11 & n.12. Because adjournment terminates Congress's ability to pass such a law, adjournment also may appropriately terminate the stay of administrative action under a statutory report-and-wait provision. By contrast, the purpose of a stay under CICA is not to afford Congress an opportunity to pass a law; as the court below explained, "reports do not necessarily reach Congress (via the Comptroller General's annual summary) until after (contract) execution is completed," and "(o)ften, therefore, legislation based on these reports will come too late to affect the specific executive actions about which Congress receives reports" (Pet. App. 26a n.9). In this case, therefore, there is no valid legislative action that the contracting agency is being required to wait for. /23/ b. The Constitution expressly grants each House of Congress the power to "adjourn from day to day" (Art. I, Section 5, Cl. 1), subject to the consent of the other House for an adjournment of more than three days (Art. I, Section 5, Cl. 4), and a resolution of adjournment is expressly excepted from the requirement of presentment to the President (Art. I, Section 7, Cl. 3). Thus, although the stays imposed by the report-and-wait provisions in Sibbach, Chadha and Alaska Airlines were terminable by action of Congress that did not satisfy the presentment requirement of Article I, the Congressional action question -- adjournment -- is expressly excepted from that requirement. See Chadha, 462 U.S. at 955-956; Synar, slip op. 7. Those report-and-wait provisions therefore furnish no support for vesting stay-terminating power in the Comptroller General, whose actions are not covered by any similar exception to the bicameralism and presentment requirements. c. An adjournment by Congress is an objectively identifiable event that has independent public significance. Adjournment affects the ability of Congress to legislate generally, and it therefore almost invariably occurs without reference to any particular administrative action that has been reported to Congress. As a result, the ability of Congress to lengthen or shorten the stay by deciding when to adjourn is unlikely in itself to give rise to significant influence by Congress over any discrete executive decision. By contrast, a stay of a contract award or performance under CICA is terminated by a decision of the Comptroller General that directly relates to -- and only to -- that contract, and therefore effectively gives the Comptroller General focused discretion to determine when that contract will be awarded or performed. The potential for leverage over the particular executive decision obviously is far greater in that situation than under a typical report-and-wait provision. D. The Stay Provisions Of CICA Cannot Be Sustained Under A Balancing Test 1. The court of appeals erred in believing that the CICA stay provisions could be sustained under a balancing approach drawn from Nixon v. Administrator, 433 U.S. at 443. See Pet. App. 33a-36a. That case did not involve an attempt by Congress to control the actions of the Executive Branch and private parties by means other than through the normal lawmaking process, with its attendant protections of bicameral approval by the House and Senate and presentment to the President. Rather, Nixon v. Administrator rejected a facial challenge, based only on generalized separation-of-powers notions, to a duly enacted law that committed responsiblity for the disposition of presidential materials entirely to officers of the Executive Branch (433 U.S. at 441-445). Although Congress had therefore not exceeded the procedural limitations imposed by the Constitution on its exercise of legislative power, the Court believed that a weighing of interests nevertheless was required in order to determine whether the law impermissibly interfered as a substantive matter with the functions of the Executive Branch (id. at 443-445). Similarly, CFTC v. Schor, supra, also cited by the court below (Pet. App. 35a; id. at 41a-43a (Garth, J., concurring)), involved a claim that the provisions of a duly enacted law impermissibly interfered with the functioning of the Judicial Branch by authorizing the CFTC to adjudicate certain counterclaims; there again was not statutory provision purporting to authorize Congress or its agent to control the actions of a coordinate Branch by means other than through the passage of a law, and the Court in fact stressed that there was "no question of the aggrandizement of congressional power at the expense of a coordinate branch" (slip op. 22). Moreover, Schor involved the distinctive body of law governing the Judicial Branch under Article III (slip op. 23), not a displacement of executive authority under Article II. And the CFTC's jurisdiction over the counterclaims depended on the consent of the parties (slip op. 13-15, 20); here, by contrast, the stay provisions vest discretionary authority in the Comptroller General to disrupt voluntary contractual relationships between executive agencies and private contractors. Accordingly neither Nixon v. Administrator nor CFTC v. Schor supports a balancing approach to the division of powers between the Legislative and Executive Branches where -- as here and in Chadha and Synar -- the challenged action of the Legislative Branch that alters the legal rights, duties and relations of persons outside that Branch does not take the form of a duly enacted law. To the contrary, the Court in Synar held the Comptroller General's powers unconstitutional despite the fact that Congress had confered those powers in response to "fiscal and economic problems of unprecedented magnitude" (slip op. 20) -- a fact that would have weighed heavily in favor of the constitutionality of the statute if a balancing approach had been appropriate. Nor is this an instance in which action by Congress in aid of its legislative powers affects persons outside the Legislative Branch only incidentally and only in their relation to the Legislative Branch -- as is the case, for example, when an Executive Branch official or private party must respond to a congressional subpoena seeking information that will be used in Congress's internal deliberations regarding possible future legislation. Rather, in CICA, Congress has sought to authorize the Comptroller General to regulate primary conduct by an executive agency and private parties that has no relation to Congress's internal legislative deliberations. Cf. Thomas v. Arn, 474 U.S. 140, 146-147 & n.5 (1985); Hanna v. Plumer, 380 U.S. 460, 471-472 (1965); id. at 474-475 (Harlan, J., concurring); United States v. Pyner, 447 U.S. 727, 737 (1980). 2. In any event, a balance of the relevant interests does not support the instrusion into the responsibilities of the Executive Branch brought about by the stay provisions of CICA. The court of appeals relied upon legislative history demonstrating Congress' purpose of asssuring competition in government procurement (Pet. App. 5a-12a). But as explained above (see pp. 2-3, supra), this interest is furthered primarily by CICA's substantive amendments to the procurement laws. See H.R. Conf. Rep. 98-861, supra, at 1421-1434, 1435-1437; H.R. Rep. 98-1157, supra, at 11-23, 23-27; S. Rep. 98-50, supra. The procedural provisions in CICA's bid-protest subtitle were not central to Congress's efforts to promote competition in government procurement. In fact, the legislative history of CICA shows that the procurement-protest subtitle was added to the Deficit Reduction Act of 1984 at the last minute and received virtually no attention by Congress as a whole. /24/ What is more, Congress's interest in affording disappointed bidders a forum for filing protests of contract actions does not require that that responsibility be given to the Comptroller General. As the legislative history shows, Congress understood that the courts and the contracting agencies themselves also entertain bid protests. And by making the GAO process non-exclusive, Congress anticipated that there would be a duplication of remedies. See pp. 24-25, supra. The stay provisions of CICA that confer stay-terminating powers on the Comptroller General therefore are not critical to fulfilling Congress's interest in establishing a workable procurement-protest system. Moreover, CICA itself suggests an alternative approach that would be entirely constitutional. In Section 2713 of DEFRA (98 Stat. 1182), Congress provided that bid protests concerning procurement of data processing equipment could be handled by the GSA Board of Contract Appeals (see 40 U.S.C. (Supp. III) 759(h)), in addition to the Comptroller General. See H.R. Conf. Rep. 98-861, supra, at 1430. The House Report explained (H.R. Rep. 98-1157, supra, at 26): The GSA Board of Contract Appeals has a reputation of being fair and impartial while providing its opinions in a timely fashion. Although Board members are appointed by and accountable to the Administrator, the operation of the Board is outside the scope of GSA's normal everday operations. As such, the Board is looked upon by agencies and the vendor community as an objective forum in which to resolve contractual disputes. The Committee believes the Board is well equipped to provide meaningful relief in this area and should be given a chance to prove it is capable of doing so. The courts also can grant relied, as respondent Ameron sought but was denied by the district court in this case. There simply is no practical necessity for departing from the division of powers between the Legislative and Executive Branches by giving the Comptroller General authority over the timing of contracting actions of the Executive Branch. 3. Although the intrusion by the Comptroller General into the execution of the laws may be less dramatic here than it was in Synar, "'(t)he hydraulic pressure inherent within each of the separate Branches to exceed the outer limits of its power, even to accomplish desirable objectives, must be resisted'" (Synar, slip op. 11 (quoting Chadha, 462 U.S. at 951)). "The Framers recognized that, in the long term, structural protections against abuse of power were critical to preserving liberty" (Synar, slip op. 14). Accordingly, "the carefully defined limits on the power of each Branch must not be eroded" (Chadha, 462 U.S. at 958). The procurement-protest provisions of CICA clearly erode those limits, and they cannot be sustained. II. THE STAY PROVISIONS SHOULD BE SEVERED FROM THE REMAINDER OF THE PROCUREMENT-PROTEST SUBTITLE OF CICA For the reasons stated in Point I, the authorization in 31 U.S.C. 3553(c) and (d) for the Comptroller General to control the timing of the award or performance of a contract between an executive agency and a private party is unconstitutional. The remaining issue concerns the proper remedy, which in turn presents a question of severability. See Synar, slip op. 18. A. The constitutional defect in the procurement-protest subtitle of CICA has no effect on the validity of the other subtitles, which prescribe comprehensive substantive standards and procedures to be followed by all Executive Branch agencies in order to promote competition in contracting. See pp. 2-3, supra. Those other subtitles are the core of CICA, and they are entirely independent of the procurement-protest title; indeed, the bill passed by the Senate, which was the basis for the bill adopted by the DEFRA conference Committee (H.R. Conf. Rep. 98-861, supra, at 1421), contained no section addressing the subject of procurement protests (id. at 1435). See n.24, supra. We also believe that the constitutional defect in the stay provisions need not result in the invalidation of the entire procurement-protest subtitle of CICA, because 31 U.S.C. 3553(c) and (d) may be severed from the remainder of that subtitle. /25/ The Court recently reiterated that "'(u)nless it is evident that the Legislature would not have enacted those provisions which are within its power, independently of that which is not, the invalid part may be dropped if what is left is fully operative as a law'" (Alaska Airlines, slip op. 5-6 (citations omitted)). If the stay provisions are severed from the remainder of the procurement-protest subtitle of CICA, "what is left is fully operative as a law," because the Comptroller General could continue to entertain bid-protests, just as he did before CICA was enacted in 1984. Nor is it "evident" that Congress would have refused to enact the remainder of the procurement-protest subtitle independently of its stay provisions. Even without the stay feature, the protest subtitle serves the important purposes of furnishing a statutory basis for and regulating this activity of the Comptroller General. See H.R. Rep. 98-1157, supra, at 23-25. Thus, if the stay provisions are severed, the contracting agency will be required to furnish relevant information to the Comptroller General (31 U.S.C. 3554(b)(2)); the Comptroller General will be obligated to decide protests (Section 3553(a)) within the time frames in the Act (Section 3554(a)), and to make an appropriate recommendation to the contracting agency if he finds a violation of a law or regulation (Section 3554(b)(1)); the head of the agency will be required to report to the Comptroller General if he does not fully implement that recommendation (Section 3554(e)(1)); and the Comptroller General will be required to submit an annual report to Congress about the protest system, including instances in which his recommendations were not implemented (Section 3554(a)(2)). B. The Senate and Ameron state in passing in their Brief in Opposition (at 18-19) -- apparently suggesting the possibility of an alternative ground for affirmance -- that the Court should consider whether, in lieu of severing the stay provisions from the remainder of CICA, the authorization in 31 U.S.C. 703(e)(1)(B) for Congress to remove the Comptroller General should be severed from the other statutory provisions concerning the creation and duties of that office. The premise presumably is that if the office of Comptroller General were altered in this manner, the incumbent could be vested with "executive" authority to control the timing of a procurement contract between an executive agency and a private party. This approach, however, would work a fundemental change in the office of Comptroller General as it has existed since enactment of the Budget and Accounting Act of 1921. There is no reason to believe that Congress, in enacting CICA, intended to permit a court to bring about that result. The Senate and the other appellants in Synar made a similar argument -- suggesting that the removal provision in 31 U.S.C. 703(e)(1) should be stricken, in lieu of holding that the Comptroller General could not perform the deficit-reduction duties assigned to him under the Balanced Budget and Emergency Deficit Congrol Act of 1985. The Court did not reach the severability issue as such, because of the existence of a "fallback" mechanism in the 1985 Act that provided for Congress to enact the deficit reduction requirements into law. Slip op. 19-20. But the Court nevertheless expressed considerable skepticism about performing the type of "creative and imaginative statutory surgery" that the Senate and Ameron propose here (id. at 20), observing that "(s)everance at this late date of the removal provisions enacted 65 years ago would significantly alter the Comptroller General's office, possibly by making him subservient to the Executive Branch" (id. at 18). /26/ Such "(r)ecasting (of) the Comptroller General as an officer of the Executive Branch," the Court continued, would "alter the balance that Congress had in mind in drafting the Budget and Accounting Act of 1921 and the Balanced Budget and Emergency Deficit Control Act, to say nothing of the wide array of other tasks and duties Congress has assigned the Comptroller General in other statutes" (id at 18-19). For this reason, a severability argument focusing on the removal section "would require this Court to undertake a weighing of the importance Congress attached to the removal provisions in the (1921 Act) as well as in other subsequent enactments against the importance it placed on the (1985 Act)" (id. at 19). As the Court recognized in Synar, the legislative history of the Budget and Accounting Act of 1921 establishes that "(t)he removal provision was an important part of the legislative scheme," because it was intended to be the means by which Congress reserved influence over the Comptroller General and, therefore, over the conduct of his audit of government programs and accounts (slip op. 13). But the significance of the provision extends beyond the influence that is occasioned by the potential for removal standing alone. See id. at 14. The provision also is emblematic of the placement of the office of Comptroller General in the Legislative Branch and of his status as an agent of Congress in the performance of his investigatory, auditing, and other work. See Bowsher v. Merck & Co., 460 U.S. 824, 844 (1983) ("The GAO is an independent agency within the Legislative Branch that exists in large part to serve the needs of Congress."). The Legislative-Branch perspective from which the Comptroller General must perform his tasks is reinforced by the numerous statutory provisions that specifically describe the duties he owes to Congress (Synar, slip op. 6-11 (Stevens, J., concurring in judgment)) and tha independently render him "an agent of the Congress" (id. at 11). Furthermore, during the 65-year period since the creation of the office, Congress repeatedly has made clear that it considers the Comptroller General to be an officer of the Legislative Branch. /27/ For example in the General Accounting Office Act of 1980 (Section 104, 94 Stat. 314-315), Congress provided for the President to select a nominee for the office of Comptroller General from among a list of three individuals recommended by the Speaker of the House and the President pro tempore of the Senate (31 U.S.C. 703(a)(2) and (3)), "because of 'the special interest of both Houses in the choice of an individual whose primary function is to provide assistance to Congress'" (Synar, slip op. 12 n.6, quoting S. Rep. 96-570, 96th Cong., 2d Sess. 10 (1980)); see also S. Rep. 96-570, supra, at 1; H.R. Rep. 96-425, 96th Cong., 1st Sess. 14 (1979). And in the General Accounting Office Personnel Act of 1980, Congress exempted GAO employees from the civil service laws and prescribed special personnel rules for GAO because of the possible conflict of interest that might otherwise result from the fact that GAO is a "legislative branch agency" charged with evaluating Executive Branch agencies (H.R. Rep. 96-494, 96th Cong., 1st Sess. 2 (1979); S. Rep. 96-540, 96th Cong., 1st Sess. 2 (1979)). See Pub. L. No. 96-191, 94 Stat. 27; 5 U.S.C. 2302(a) and (c), 3132(a)(1), 4301(1), 7103(a)(3)(A); 31 U.S.C. 731-755. /28/ Thus, when Congress passed CICA in 1984, it acted against the backdrop of a firmly established practice, reiterated twice in special statutes passed only four years earlier, that GAO is part of the Legislative Branch and performs its auditing and investigatory functions as an agent of Congress. The scant attention that Congress paid to the procurement-protest subtitle when CICA was added to DEFRA at the last minute (see n.24, supra) falls far short of the compelling evidence that would be necessary to demonstrate that Congress regarded the CICA stay provisions as so critical that it would have preferred to work a fundamental change in the nature of the Office of Comptroller General in order to preserve those provisions. In fact, the legislative history of the protest provisions of CICA indicates that Congress simply took the Comptroller General as it found him -- "as an officer of the legislative branch" (H.R. Rep. 98-1157, supra, at 23). CONCLUSION The judgment of the court of appeals should be reversed and the case remanded with directions to enter judgment for the petitioners. Respectfully submitted. CHARLES FRIED Solicitor General JOHN R. BOLTON Assistant Attorney General THOMAS W. MERRILL Deputy Solicitor General EDWIN S. KNEEDLER Assistant to the Solicitor General DOUGLAS N. LETTER THOMAS M. BONDY Attorneys MAY 1988 /1/ All citations to the bid-protest provisions of CICA are to Supplement III to the 1982 edition of Title 31. /2/ The 1974 Act "establish(ed) an Office of Federal Procurement Policy in the Office of Management and Budget to provide overall direction of procurement policies, regulations, procedures, and forms for executive agencies in accordance with appliable laws" (31 U.S.C. 402(b)). See 41 U.S.C. 404. /3/ If the Comptroller General finds that the case is suitable for expedited treatment under 41 U.S.C. 3554(a)(2) (see pp. 4-5, infra), the agency must submit its report within 10 working days (Section 3553(b)(2)(C)). If the Comptroller General dismisses the protest under 31 U.S.C. 3554(a)(3) (see p. 5, infra), the agency need not submit a report (Section 3553(b)(3)). /4/ The agency head may not make such a finding "unless the award of the contract is otherwise likely to occur within 30 days thereafter" (31 U.S.C. 3553(c)(3)). /5/ The Comptroller General recently announced a new policy under which "the costs of filing and pursuing a protest generally should be granted whenever a protest is sustained based on more than some technical violation of statute or regulation, whether or not other remedies also are appropriate" (52 Fed. Reg. 46448 (1987)). The Comptroller General also has adopted new procedures permitting GAO to conduct hearings and make findings of fact on issues raised in the protest. 4 C.R.R. 21.5(b); see 52 Fed. Reg. 46449 (1987). Finally, the Comptroller General has taken the position that he, not the contracting agency, may make the final determination whether agency documents concerning the procurement decision will be made available to the protester and other parties under applicable standards. 4 C.F.R. 21.3(c)-(h); see 52 Fed. Reg. 46446-46447 (1987). /6/ The FAR provisions made clear that "award need not be withheld pending final disposition by the GAO of the protest," but that notice of intent to proceed should be furnished to GAO (48 C.F.R. 14.407-8(b)(3) (1984)). /7/ Compare Bowsher v. Synar, No. 85-1377 (July 7, 1986), slip op. 3 n.1. The President pointed out that "(t)he administration's position on the unconstitutionality of these provisions was clearly articulated to Congress by the Department of Justice on April 20, 1984" (20 Weekly Comp. Pres. Doc. 1037 (July 18, 1984)). See J.A. 57; H.R. Rep. 98-1157, supra, at 59 & n.1. /8/ The Attorney General also concluded that the Comptroller General cannot constitutionally make a binding award of the costs of preparing a bid or pursuing a protest (J.A. 53). /9/ Apparently, the representation to which the court of appeals referred in holding that the controversy is capable of repetition was the statement in the Joint Brief for Ameron and the Senate as Appelles (at 55) that "(Ameron) bids periodically on government contracts, and will face a recurring need to make decisions on the filing of bid protests under CICA." The Joint Brief added (at 55 n.49): Ameron has filed at least one previous bid protest, Decision of the Comptroller General, B-172840 (July 13, 1971) (available July 19, 1985 on WESTLAW, CG file). See also 55 Comp. Gen. 955 (1976) (Ameron was supplier to low bidder)." Compare Honig v. Doe, No. 86-728 (Jan. 20, 1988), slip op. 10-16. /10/ In a separate opinion (Pet. App. 88a-100a), Judge Becker concluded that the Comptroller General is an officer of the Legislative Branch (id. at 89a-92a) and that his critical functions under CICA are not "legislative" in nature (id. at 93a-94a), but he nevertheless concluded that the conferral of these "executive-judcial powers" on the Comptroller General was constitutional because they did not threaten "individual liberty" (id. at 96a-98a). /11/ The court of appeals concluded that the injunctive relief granted by the district court, which appeared to bind petitioners throughout the United States (Pet. App. 2a-3a n.1, 150a), was too broad (id. at 80a-87a). In the court's view, because the Senate and the Speaker and Bipartisan Leadership Group of the House did not have independent standing to seek injunctive relief, any such relief must be confined to that which respondent Ameron could obtain (id. at 81a-82a). The court therefore modified the injunction to require petitioners to comply with 31 U.S.C. 3553 only in connection with Ameron's bid protest of March 1, 1985 (Pet. App. 86a-87a). However, the status quo that has existed since the district court entered its government-wide injunction has been maintained, because the interim amendment to the FAR requiring exceptive agencies to follow the CICA stay provisions pending the appeal in this case has not been rescinded, and OMB Bulletin 85-8 has been reinstated. See pp. 10-11, supra. This voluntary continuation of the conditions that were imposed by the district court's injunction does not render this case moot. See Honig v. Doe, slip op. 13-15; Chicago Teachers Union, Local No. 1 v. Hudson, 475 U.S. 292, 299, 305 n.14 (1986); County of Los Angeles v. Davis, 440 U.S. 625, 631 (1979); United States v. W.T. Grant Co., 345 U.S. 629, 632 (1953). /12/ The court likewise recognized that after Synar, it could no longer avoid, on ripeness grounds, the question whether Congress's power to remove the Comptroller General barred it from vesting him with authority to affect the timing of government contracts (Pet. App. 13a-15a; see Synar, slip op 12). The court further recognized that Synar forecloses Judge Becker's prior view (see n.10, supra) that there is no separation-of-powers violation in the absence of a demonstrable threat to individual liberty (Pet. App. 4a n.2; id. at 39a n.1 (Garth, J., concurring)). /13/ A panel of the Ninth Circuit also has recently held that the stay provisions of CICA are constitutional, albeit on grounds somewhat different from those adopted by the Third Circuit in this case. See Lear Siegler, Inc. v. Lehman, No. 85-5670 (Mar. 23, 1988). The Lear Siegler panel stated that Chadha and Synar offer "superficial support" for the proposition that "Congress and its agents are forbidden from 'executing the law' * * * where doing so affects actors outside the legislative branch" (slip. op. 3543). But the Lear Siegler panel read Chadha and Synar to bar such involvement only where Congress or its agent exercises "ultimate authority" in a way that permanently alters legal rights of persons outside the Legislative Branch (id. at 3544-3547), not where the legislative agent "temporarily 'bind(s)'" such persons, as under CICA (id. at 3550-3552). After thus finding the "formal" requirements of Chadha and Synar inapplicable (id. at 3547), the court applied balancing test and held that Congress's interests in promoting competition in intrusion into the contracting process (id. at 3552-3555). On May 6, 1988, the government filed a petition for rehearing in Lear Siegler and requested that the petition be held pending this Court's decision in the instant case. Two district courts have also rejected constitutional challenges to CICA's stay provisions. Parola v. Weinberger, No. C-85-20303-WAI (N.D. Cal. Feb. 13, 1987), appeal pending, No. 86-2963 (9th Cir.), Universal Shipping Co. v. United States, 652 F. Supp. 668 (D.D.C. 1987), appeal pending, No. 87-5120 (D.C. Cir.). /14/ See also The Federalist No. 75, at 450 (A. Hamilton) ("(T)he essence of the legislative authority is to enact laws, or, in other words, to prescribe rules for the regulation of society."). /15/ The Comptroller General has acknowledged that his authority under CICA is judicial in nature. He explained in the preamble to the first set of regulations implementing the protest subtitle of CICA that "(o)ne important purpose of the bid protest forum is to provide a procedure through which provate parties may enforce the substantive provisions of the (CICA)." 49 Fed. Reg. 49419 (1984). See also 52 Fed. Reg. 46448 (1987) (a person who files a protest with GAO acts as a "private attorney general"). The court of appeals also recognized that the Comptroller General acts "like a court" under CICA (Pet. App. 29a). /16/ The duplication of the judicial function is especially vivid in this case, because Ameron respondent sought from the district court, but was based on the merits of its challenge to the selection of Spiniello. But Ameron did obtain a preliminary injunction barring performance of the contract until the Comptroller General ruled on that same challenge. See 9-10, supra. That preliminary injunction had essentially the same effect as the Comptroller General's continuation of the statutory stay of Spiniello's performance while he considered Ameron's challenge. /17/ Contrary to respondents' contention (Senate & Ameron Br. in Opp. 14; Comp. Gen. Br. in Opp. 9), the fact that the agency may proceed with the contract if the head of the agency makes the requisite finding of exigent circumstances (see 31 U.S.C. 3553(c) and (d)) does not undermine the conclusion that the Comptroller General, rather than an officer of the Executive Branch, retains "ultimate authority" over the timing on the contract in those cases in which the agency head cannot make such a finding. /18/ As Montesquieu observed in The Spirit of Laws Bk. XI, ch. 6, at 208 (Carrithers ed. 1977): "(I)t is not proper * * * that the legislative power should have a right to stop the executive. For as the execution has its natural limits, it is useless to confine it; besides the executive power is generally employed in momentary operations. * * * But if the legislative power in a free government has no right to stay the executive, it has a right and ought to have the means of examining in what manner its laws have been executed." /19/ Cf. Art. II, Section 2, Cl. 1 (the President "may require the Opinion, in writing, of the principal Officer in each of the executive Departments, upon any Subject relating to the Duties of their respective Offices"). /20/ See also Burton v. United States, 202 U.S. 344, 367-368 (1906) ("The proper discharge of (his) duties does not require a Senator to appear before an executive Department in order to enforce his particular views, or the views of others, in respect of matters committed to that Department for determination," although "(h)e may often do so without impropriety."). /21/ The decisions cited by the court of appeals (Pet. App. 25a-26a) indicate only that a contracting officer in an executive agency might properly decline to enter into a contract or terminate a contract for the convenience of the government in light of views expressed by the Comptroller General or a congressional committee; those decisions do not hold that the ability to exert influence on individual contracting decisions is a necessary part of Congress's legislative powers under Article I. See City of Alexandria v. United States, 737 F.2d 1022, 1025-1027 (Fed. Cir. 1984); Schlesinger v. United States, 390 F.2d 702, 710 (Ct. Cl. 1968); John Reiner & Co. v. United States, 325 F.2d 438, 442-443 (Ct. Cl. 1963). /22/ Under a statute such as that at issue in Alaska Airlines, intrasession recesses or adjournments have the effect of enlarging the period of time necessary for the specified number of "legislative days" to elapse. The Constitution does not contemplate that Congress may frustrate actions of the Executive Branch simply by declining to be in session. See Art. I, Section 7, Cl. 2 (Pocket Veto Clause); Art. II, Section 2, Cl. 3 (Recess Appointments Clause). /23/ Moreover, in Sibbach, Chadha and Alaska Airlines, Congress by law had prescribed a stay of all Judicial or Executive Branch actions in the specified category, and the stay therefore was automatically triggered whenever the Judicial or Executive Branch entity took such action. Under CICA, by contrast, Congress did not mandate a stay of all contracting decisions, and a stay therefore is not automatically triggered whenever an executive agency makes a contracting decision. Instead, the stay is triggered only when a private party files a protest with GAO. This feature underscores the fact that the CICA stay mechanism principally serves the interests of individual parties in contract disputes pending in a non-legislative forum, rather than legislative interests of more general applicability that typically underlie a report-and-wait provision. /24/ CICA was fashioned by the conference committee on the bill that was enacted as DEFRA. H.R. Conf. Rep. 98-861, supra, at 1421. The Senate had added to the DEFRA bill the substance of S. 338, 98th Cong., 1st Sess. (1983) (see 130 Cong. Rec. S5020-S5027 (daily ed. Apr. 30, 1984)), a competition-in-contracting bill that previously had passed the Senate. 129 Cong. Rec. S15998-S16009 (daily ed. Nov. 11, 1983). But the floor amendment to DEFRA in the Senate did no contain a procurement-protest subtitle. Ibid.; H.R. Conf. Rep. 98-861, supra, at 1435. The House version of the DEFRA bill did not contain any competition-in-contracting title. H.R. Conf. Rep. 98-861, supra, at 1421. However, two bills had been introduced in the House that addressed the subject of competition in contracting: H.R. 2545, 98th Cong., 1st Sess. (1983), which was still pending before the House Armed Services Committee, and H.R. 5184, 98th Cong., 2d Sess. (1984), which although it had been ordered reported out of the House Committee on Government Operations on May 9, 1984, was not actually reported to the House (with a printed report) until October 10, 1984, well after DEFRA was passed by Congress and approved by the President on July 18, 1984. See H.R. Rep. 98-1157, supra, at 1, 10, 61 n.11; 130 Cong. Rec. H11829 (daily ed. Oct. 10, 1984). CICA represents a compromise worked out by the DEFRA conference committee between S. 338 and the two House bills, and the procurement-protest provisions were added to the DEFRA bill at that time. H.R. Conf. Rep. 98-861, supra, at 1435. For this reason, the protest provisions did not come before either House of Congress until the last minute, when they voted on the conference report on DEFRA -- a 700-page bill with enormous budgetary consequences that overshadowed CICA in its entirety, not to mention CICA's bid-protest subtitle. Not surprisingly, CICA was not even mentioned during the Senate debate on the conference report (130 Cong. Rec. S8371-S8422 (daily ed. June 27, 1984)), and there were only a few references to CICA (which included passing references to the bid-protest mechanism, but not specifically to the stay feature) during the brief House debate (id. at H7091 (remarks of Rep. Mitchell); id. at 7102 (remarks of Rep. Horton); id. at 7107 (remarks of Rep. Brooks); ibid. (remarks of Rep. Stratton)). /25/ The provisions imposing a stay when a protest is filed and lifting the stay when the Comptroller General dismisses the protest or renders a decision are inextricably intertwined, and 31 U.S.C. 3553(c) and (d) therefore must be severed in their entirety. Cf. Pierce, 697 F.2d at 307. If only the provision for limiting the stay were severed, the mere filing of a protest would result in a permanent stay of the award or performance of the contract, unless the contracting agency was able to make the requisite finding of exigent circumstances. Nor could difficulties be avoided by limiting the duration of such a stay to 90 working days, the time within which Congress expected the Comptroller General to render his decision. 31 U.S.C. 3554(a)(1). That approach would require redrafting, not severing, and it would result in an automatic stay for 90 working days (18 weeks) even if the protest was frivolous, since the Comptroller General would not be empowered to shorten the stay by dismissing a petition under 31 U.S.C. 3554(a)(3). That safety valve is critical, because it "reflects the intent of the conferees to keep proper contract awards or due performance of contracts from being interrupted by technicalities which interested parties in bad faith might otherwise attempt to exploit." H.R. Conf. Rep. 98-861, supra, at 1436-1437. /26/ Compare Morgan v. TVA, 115 F.2d 990, 993 (6th Cir. 1940), cert. denied, 312 U.S. 701 (1941); cf. Shurtleff v. United States, 189 U.S. 311, 315-316 (1903); Parsons v. United States, 167 U.S. 324, 343 (1897); In re Hennen, 38 U.S. (13 Pet.) 230, 259-260 (1839). /27/ The Reorganization Acts of 1945 and 1949 specified that the Comptroller General and GAO are "a part of the legislative branch of the Government" (Section 7, 59 Stat. 616; Section 7, 63 Stat. 205), and in the Accounting and Auditing Act of 1950, Congress directed that the auditing of government accounts shall be "conducted by the Comptroller General of the United States as an agent of the Congress" (Section 111(d), 64 Stat. 835). /28/ See also 2 U.S.C. 701(e), 703(b) (GAO is part of the "legislative branch" for purposes of financial disclosure reporting). In addition, appropriations for GAO are set forth annually in the Legislative Branch Appropriations Act. See e.g., Pub. L. No. 99-151, 99 Stat. 792; Pub. L. No. 99-591, Section 101(j), 100 Stat. 3341-287; Pub. L. No. 99-500, Section 101(j), 100 Stat. 1783-287; H.R. Conf. Rep. 99-805, 99th Cong., 2d Sess. 6 (1986). See also Pub. L. No. 100-120, Section 101(a)(1), 101 Stat. 789.