When I was a young FOIA attorney at the Department of Justice’s Office of
Information and Privacy (OIP), it was a far simpler time, especially in
regard to unit prices. When someone called OIP for advice about what to do
for a request about what do when they got a FOIA request for unit prices,
the reply was simple, “release them” we told callers.
Not anymore. At least not without a lot of analysis. All of the confusion
stems from a pair of cases brought by McDonnell Douglas Corp. The first,
McDonnell Douglas Corp. v. NASA, 180 F.3d 303 (D.C. Cir. 1999),
reh’g en banc denied, No. 98-5251 (D.C. Cir. Oct. 6, 1999), put the
concept of withholding unit prices in play.1
Three years later, in McDonnell Douglas Corp. v. United States
Department of the Air Force, 215 F. Supp. 2d 200 (D.D.C. 2002), the
District Court for the District of Columbia ruled that the government had
made a detailed analysis and that release of unit prices would not cause
substantial competitive harm to McDonnell Douglas. Unfortunately for those
wishing for the simpler days of yore, the litigation did not end there. On
appeal to the District Court of Appeals for the District of Columbia,
McDonnell Douglas prevailed.
In McDonnell Douglas Corp. v. United States Department of the Air Force,
375 F.3d 1182 (D.C. Cir. 2004), a divided court held that two categories
of CLIN prices could not be released despite the district court’s finding.
The majority rejected the district court’s conclusion that the Air Force
had properly found there was no substantial competitive harm in releasing
two of these categories of prices at issue. A very strongly worded dissent
by Judge Merrick Garland was also part of the decision.
This split decision only further complicates the unit price question. In
early October, the government filed a petition for rehearing and suggested
that the case be heard en banc (heard by all of the Judges for the D.C.
Court of Appeals). Thus, confusion on this issue will reign at last until
there is resolution of this matter by either the entire D.C. Circuit, or
the Supreme Court. The rules as they currently exist from the two
McDonnell Douglas cases are difficult for agencies to understand and
follow. The Department of Justice won’t issue definitive guidance until
they know if the decision in the second McDonnell Douglas case is the
actual conclusive ruling on this issue. Unfortunately, for FOIA
requesters, submitters and agency personnel, the day Department of Justice
(and the rest of the FOIA community) knows if the McDonnell Douglas II is
the law with regard to unit prices may be a long way off.
1 The term “unit prices” is used in the FOIA context interchangeably with the term “contract line item number (CLIN) prices.”