Document: 543 U.S. 631 CHEROKEE NATION OF OKLAHOMA ET AL.v.LEAVITT, SECRETARY HEALTH AND HUMAN SERVICES, AL. No. 02-1472. Supreme Court of United States. Argued November 9, 2004. Decided March 1, 2005* The Indian Self-Determination and Education Assistance Act (Act) authorizes the Government tribes to enter into contracts in which promise supply federally funded services that a agency normally would provide, 25 U. S. C. § 450f(a); requires pay, inter alia, tribe's "contract support costs," are "reasonable costs" federal not have incurred, but tribe incur managing program, 450j-1(a)(2). Here, each Tribe agreed health provided by Department Health Human Services' Service, included an annual funding agreement with pay contract costs. In instance, refused full amount promised because Congress had appropriated sufficient funds. first case, Tribes submitted administrative payment claims under Contract Disputes 1978, Interior (the appropriations manager) denied. They then brought breach-of-contract action. District found against them, Tenth Circuit affirmed. second Cherokee Nation Interior, Board Appeals ordered paid. Federal Held: is legally bound at issue. Pp. 636-647. (a) argues it its promises relevant costs only if funds, contends did do this instance. It does deny promised, failed, costs; that, were these ordinary procurement contracts, be binding; year more than amounts issue; those Acts no statutory restrictions; where makes such appropriations, clear inference arises intend impose binding as long has unrestricted funds here, cannot back out on grounds insufficient appropriations. Thus, order show binding, must something special about fails so here. 636-638. (b) Government's initial argument creates unique nature differentiating from standard should bear risk lump-sum appropriation will contract. general, Act's language runs counter view, strongly suggesting instead Congress, respect promise's nature, meant treat alike made contractual promises. uses "contract" 426 times describe promise, refers "a ... for breach law gives remedy, or performance recognizes duty," Restatement (Second) Contracts 1. Payment described provision containing sample "Contract," 450l(c), contractors entitled "money damages" refuses 450m-1(a). Nor general purposes any treatment. points statement need spend "in excess awarded," kind often appears contracts; "no [self-determination] shall construed contract," 450b(j), context, seems designed relieve technical burdens may accompany procurement, weaken contract's nature. 638-640. (c) Neither phrases proviso renders nonbinding. One phrase — "the Secretary required reduce programs, projects, activities serving make available another tribe," 450j-1(b) nonbinding, since contained When happens admits contractor even allocated purpose. That used satisfy important needs e. g., cost running Service matter, there nothing convince anything rule applies other subjects "to availability appropriations," ibid. also help Government. adequate provides convincing special, rather ordinary, interpretation phrase. Legislative history shows Executive Branch officials wanted discretionary authority allocate too small all granted authority. And provisions, 450j-1(c)(2), points, provide support. 640-645. (d) Finally, 314 later-enacted 1999 Appropriations Act, states "earmarked committee reports payments total fiscal years 1994 through 1998 purposes." rejects statute merely clarifies earlier ambiguous was wrongly read unrestricted. Earlier statutes ambiguous, restrictive Committee Reports binding. Because exists, unambiguously interpreted retroactively bar arising 1997 contracts. raise serious constitutional issues undoing governmental obligations. adopts intended forbid use unspent unpaid So interpreted, recovery 645-647. 02-1472, 311 F. 3d 1054, reversed; 03-853, 334 1075, affirmed; both cases remanded. BREYER, J., delivered opinion Court, STEVENS, O'CONNOR, KENNEDY, SOUTER, THOMAS, GINSBURG, JJ., joined. SCALIA, filed concurring part, post, p. 647. REHNQUIST, took part decision cases. CERTIORARI TO THE UNITED STATES COURT APPEALS FOR TENTH CIRCUIT. Lloyd B. Miller argued cause petitioners 02-1472 respondent 03-853. With him briefs Arthur Lazarus, Jr., Harry R. Sachse, William Perry, Carter G. Phillips, Stephen Kinnaird. Sri Srinivasan parties brief Acting Solicitor General Clement, Assistant Attorney Keisler, Deputy Kneedler, Barbara Biddle, Jeffrica Jenkins Lee, Alex M. Azar II.† JUSTICE BREYER Court. 1 States two entered agreements certain incurred during (FYs) 1997. question before us whether We conclude they are. 2 * (Act), 88 Stat. 2203, amended, 450 et seq. (2000 ed. Supp. II), services, example tribal otherwise provide. See see 450a(b). specifies costs, including expenses. §§ 450j-1(a)(1) (2). Administrative expenses include (1) spent "for operation progra[m]" itself managed 450j-1(a)(1), (2) issue 3 defines nonetheless organization" acting "as contractor" ensure compliance terms prudent management." Ibid. "[C]ontract can indirect auditing financial management 450j-1(a)(3)(A)(ii); direct workers' compensation insurance, 450j-1(a)(3)(A)(i); startup 450j-1(a)(5). Most "generally calculated applying `indirect rate' payable Tribe." Brief Parties 7; 450b(f)-(g). 4 case concerns Shoshone-Paiute FYs 1996 1994, 1995, 1996. contract, agency, provided. See, App. 88-92 (Shoshone-Paiute Tribal Compact), 173-175 (Compact between Nation). Each "Annual Funding Agreement" id., 104-128, 253-264. because, says, appropriate 5 Both began proceedings. seeking 92 2383, 41 601 seq., 450m-1(a), (d), 458cc(h), (which manages appropriations). 150-151, 201-203. denied their claim; action Eastern Oklahoma $3.5 million (Shoshone-Paiute) $3.4 (Cherokee Okla. v. Thompson, 1059 (CA10 2002). Tribes. States, 190 2d 1248 (ED 2001). 1054 (2002). 6 Interior. 229-230. A contracting officer claims; reversed ruling, ordering $8.5 damages. Okla., 1999-2 BCA ¶ 30,462, 150488; Pet. Cert. pp. 38a-40a. sought judicial review Circuit. affirmed Board's determination Tribe. Thompson 1075 (2003). 7 light identical opposite results Courts reached, we certiorari. now affirm Circuit's judgment favor Nation, reverse II 8 failed pay. Its sole defense consists if, so. 9 effect concedes yet more. point far here (between $1.277 billion $1.419 billion) carry out," Act." 107 1408 (1993); 108 2527-2528 (1994); 110 1321-189 (1996); 3009-212 3009-213 (1996). These restriction. 10 (and amici) add, first, said 11 fundamental principle appropriates without statutorily restricting what done restrictions, indicia legislative how expected establish legal requirements agency." Lincoln Vigil, 508 182, 192 (1993) (internal quotation marks omitted). 12 International Union, Auto., Aerospace & Agricultural Implement Workers America Donovan, 746 855, 860-861 (CADC 1984) (Scalia, J.); Blackhawk Heating Plumbing Co. 224 Ct. Cl. 111, 135, n. 622 539, 552, (1980). 13 amici second, issue, "insufficient "subject agency's made. Ferris 27 542, 546 (1892) ("A who one several persons paid chargeable knowledge administration, nor his rights affected impaired maladministration diversion, illegal, objects"); Blackhawk, supra, 2d, 9. 14 As said, denies none this. demonstrate precisely tries, fails, do. 15 initially "self-determination contrac[t]" "unique, government-to-government nature" differentiates "standard government contracts." 4. bargain arm's length, 24, charge other, similar tribes; (though cover own contracts) prove 23-25. elected "ste[p] shoes agency," 25, like agency; enjoys entitlement receive 24-25. Rather, portion it, entire sum private might well entitled. Id., 24. 16 finds treatment pursuant pointing stating "`no . contract,'" 23 (quoting 450b(j) (alterations original)). supplementary says deliver "`in awarded,'" 24 450l(c); citing 458aaa-7(k)). 17 our fall short providing needs. view. suggests (say, contracts). example, word promise; set some way (1979). describes setting forth "Contract." U.S.C. 450l(c) (Model Agreement 1(a)(1), (b)(4)). Further, accordance Act. 450m-1(a); 450m-1(d), 458cc(h). 18 seeks greater self-reliance "effective meaningful participation people" in, less "Federal domination" of, "programs for, to, Indians." reflects congressional concern past failure adequately reimburse tribes' require future. 450j-1(g); 450j-1(a), (d)(2). 19 specific points—stating 1(b)(5))—does Cf. 18. This e.g., 48 CFR 52.232-20(d)(2) (2004) (sample "Limitation Cost" clause); generally W. Keyes, Under Acquisition Regulation 32.38, 724 (3d 2003). find statute's contract." 450b(j). 3-4.6001 (1976) (applying rules contracts); Rep. 100-274, (1987) (noting application "resulted excessive paperwork unduly burdensome reporting requirements"); 18-19 (describing apply "greatly reduc[e]" bureaucracy associated them). indication believed accepted current claim mutual self-awareness among contractors, tribes, Government, contractors. Compare 23-24 Ferris, Cl., 546. B 20 next proviso, states: 21 "Notwithstanding subchapter, subchapter [1] subject [2] organization subchapter." (emphasis bracketed numbers added). 22 believes italicized phrases, taken separately together, render begin [2]. phrase, nonbinding doing devote "programs, 27-36. inadequate, however, least up fact—found Circuit, 3d, 1093-1094, nowhere denied— 636-638, tells say, "if fund purpose assumes obligations exhaust funds." Lincoln, U.S., 192; 9; 26 though (as statutes' concerned) unavailable critically need, namely, "inherent functions," Service's central Washington office. 9-10, 27-34. purpose, albeit potentially very If alternative rescue best effort unpersuasive. forbids performing functions. 458aaa-6(c)(1)(A)(ii); 450f(a)(2)(E), 1(a)(2)). Language kind, kinds source contractually legitimate here). 28 recognize agencies sometimes believe fulfilling obligation. But expects avoid situations, refraining making essential commitments; asking advance protect needed earmarks; added Congress; or, necessary, using while leaving free pursue remedies broke promise. New York Airways, Inc. 177 800, 808-811, 369 F.2d 743, 747-748 (1966) (per curiam); 31 1341(a)(1)(A) (B) (Anti-Deficiency Act); (Contract 1304 (Judgment Fund); Accounting Office, Principles Law 6-17 6-19 (2d 1992) (hereinafter GAO Redbook). denying matter law, different 29 Phrase appropriations." 450j-1(b). either. 2716(a)(1); 42 6249(b)(4), 12206(d)(1). party negotiate prior beginning become unless until year. 133-138, F.2d, 551-553; Redbook 4-6 2004); 6-6 6-8, 1992). lacks bind regard 546; 809-813, 748-749; Dougherty 496, 503 (1883); (providing authority, absence appropriation). Since [1], ordinarily understood, 30 again interpretation. "an affirmative grant adjust levels based original). arguing, (on basis language) right disregard reasonably appropriation. shoulder burden explaining why, context give contract-related interpretation, showing contrary. uniform comparable statutes, lest uncertainty undermine contractors' confidence paid, turn increase purchasing goods services. Franconia Associates 536 129, 142 (2002); Winstar Corp., 518 839, 884-885, (1996) (plurality opinion); 913 (BREYER, concurring); Lynch 292 571, 580 (1934). 32 history, 41-42 (citing, 48, 57), liked exercise into; provisions points. 450j-1(c)(2) (requiring report underpayments costs); (Appropriations FY 1994) $7.5 "initial expanded" "shall remain available" expended); 2528 (same 1995); 1996); 1997). adopt proviso. C 33 later enacted statute, Related Agencies 1999, says: 34 [the] earmarked 112 2681-288 35 45-50. adds "earmarked," i.e., restricted, 48. been spent. 12. "are for" unlawful Tribes' claims. 45-48. 36 open bars Just Congress' enactment 314, Department's considered present ones held Alamo Navajo School Bd., Miccosukee 1998-2 29,831, 147681 (1997), 29,832, 147699 (1998). contemporaneously issued draft document suggested costs." 206-209. Indeed, referred unobligated cost" debts. 206-207. Section 314's simply forbidding leftover 37 On alone either reasonable. considerations. undo repudiates obligation violate Constitution. Winstar, 875-876 Perry 294 330, 350-351 (1935); Lynch, 579-580; Klein, Wall. 128, 144-147 (1872); also, opinion) practical disadvantages flowing repudiation); (same). disfavored. Clark Martinez, ante, 380-382; Zadvydas Davis, 533 678, 689 (2001); Edward J. DeBartolo Corp. Florida Gulf Coast Building Constr. Trades Council, 485 568, 575 (1988). consideration tips balance retroactive 38 relying offers third. (citing Red Lion Broadcasting FCC, 395 367, 380-381 (1969)). ambiguous. S., 860-861; No exists. therefore accept 314. 39 Hence we, left adopt, concluding circumstances. Zadvydas, 689; cf. 1092. 40 For reasons, Circuit; remand further proceedings consistent opinion. ordered. CHIEF Notes: Together 03-853,Leavitt, Services Oklahoma, certiorari &#x2020; Briefs curiae urging reversal affirmance 03-853 National American Indians DuMont; Tunica-Biloxi Louisiana Michael P. Gross Bryant Rogers. Ian Heath Gershengorn, Donald Verrilli, Herbert L. Fenster, Robin Conrad Chamber Commerce al. Geoffrey D. Strommer, Joseph H. Webster, Charles A. Hobbs Seldovia Village amicus curiae. 43 part. 44 I join Court's except reliance, 640, Senate Report meaning most indicates intent Congress—and realistically, probably requirement members vote on, probability read, text staff-generated report. fiction say expresses Congress. event inadequately expressed enacted, looking for. virtue cited allure) wants.

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