Boards of Contract Appeals (ASBCA,
CBCA, PSBCA, and GAOCAB)
Jurisdiction/Standing/Timeliness/Contract
Disputes Act (CDA) Issues
Definition of
Claim
In
Hanley
Industries, the ASBCA decided that a letter from the
Contracting Officer revoking acceptance of items under the
"Inspection" clause and reserving the
Government's right to quantify the amount it associated
with this action at a later date was not a CDA claim and,
therefore, could not be appealed by the contractor.
In
G & R Service Co. , the CBCA dismissed an appeal for
lack of jurisdiction because the underlying demands for
"not-to-exceed" amounts did not constitute a CDA
claim for a sum certain.
In The
Minesen Co., the ASBCA dismissed an appeal because the
agency's allegedly continuing failure to cure an alleged
breach at issue in another pending appeal did not create
new claim that could be appealed separately.
In J.
P. Donovan Construction., the ASBCA dismissed the
entire claim as lacking a sum certain because the
contractor stated it would be adding an approximate amount
of G&A expenses onto its subcontractor's sum certain
claim.
In Northrop
Grumman Systems Corp, Space Systems Division, the
ASBCA held that (i) an alternative legal theory first
raised in post-hearing briefs but based on the same
operative facts as the theory in original claim was not a
new claim; (ii) it lacked jurisdiction over an
"improper exercise of option" claim because that
claim was not encompassed by the claim submitted to the
Contracting Officer; and (iii) a portion of an appeal
involving allegations not stated in a sum certain was
severable from the remainder of claim and, therefore, did
not require dismissal of the entire claim.
In
Parsons
Global Services,
the ASBCA dismissed the appeal for lack of CDA
jurisdiction because the contractor had omitted all the
normal steps for determining (and invoicing the Government
for) its subcontractor's indirect costs, and, therefore,
Government had never been in a position to dispute any of
these costs.
Submission of
Claim to Contracting Officer
Todd Pacific Shipyards discusses the standards for CDA
jurisdiction over "new" and revised claims not
yet presented to a Contracting Officer for decision.
On reconsideration in Wimberly,
Allison, Tong & Goo, the ASBCA affirmed its
decision to dismiss a government claim when the
Contracting Officer rescinded his decision after an appeal
had been filed; the Board reasoned that the government
claim was not for a sum certain and, therefore, that the
Board lacked CDA jurisdiction.
Several claims by
Guy
W. Parker d/b/a Parker International were
dismissed/denied by the ASBCA for various reasons: res judicata
on a claim related to the Contracting Officer's authority;
the fact that another claim had not been submitted to the
Contracting Officer for a decision; and a lack of evidence
or any contractual basis for claims related to government
property.
In Starwin
Industries, the ASBCA decided it lacked jurisdiction
over the quantum portion of an appeal from a default
termination because no quantum claim had been submitted to
the Contracting Officer for a decision.
In
Ron
Anderson Construction Co., the CBCA denied the
Government's motion to dismiss the contractor's appeals
for lack of subject matter jurisdiction. The Board
concluded from the "totality of the
circumstances" that a request for a decision by the
Contracting Officer was implied in the contractor's
original cost proposals.
In
Walsh/Davis
Joint Venture, the CBCA denied the Government's motion
to reconsider the Board's earlier decision refusing to
dismiss a claim for lack of jurisdiction. The Government
argued that it had not been presented to the Contracting
Officer for a decision. The Board concluded it was based
on the same operative facts as a claim that had been.
In Nova
Group, the ASBCA concluded it lacked jurisdiction to
enforce unilateral modifications the Government had
issued to recoup amounts paid to the contractor because
those mods were not the subject of the contractor's claims
or a Contracting Officer's decision.
In
Macrosystems,
the CBCA dismissed an appeal for lack of CDA jurisdiction
because the contractor did not file a claim following a
termination for convenience.
In
Shaw
Environmental, Inc., the ASBCA struck allegations from
the contractor's complaint that were not part of its
original claim to the Contracting Officer.
Statute
of Limitations
Todd Pacific Shipyards discusses the time when a claim
accrues for purposes of CDA jurisdiction. In Bernard
Cap Co., the ASBCA dismissed several claims as time
barred.
In JRS
Management, the ASBCA held that laches barred a
contractor's claim even though the CDA's statute of
limitations was not applicable.
In
Systems
Development Corp., the Board dismissed a claim as
barred by the CDA's statute of limitations because it
"accrued" more than six years before it was
submitted to the Contracting Officer for a decision.
In
Cardinal
Maintenance Service, the ASBCA dismissed the portions
of the contractor's claims time barred by the CDA's
six-year statute of limitations.
Jurisdiction
In Versar,
Inc., the ASBCA held it (i) lacked jurisdiction to
decide the contractor's request that Board order specific
performance (i.e., that the Government rescind a
"red" performance rating) but (ii) had
jurisdiction to decide whether the rating was appropriate.
In Smoke
Blotter, the ASBCA held it lacked CDA jurisdiction
over a contractor's protest of the issuance of a delivery
order to its competitor.
In Colonna's
Shipyard, the ASBCA distinguished what it cannot do
(grant a request for specific performance or injunctive
relief, e.g., by ordering the Government to change a
contractor's performance rating) from what it can do
(determine whether a particular performance rating
breached a contract requirement or provision).
In
, which the CBCA described as nonprecedential,
the CBCA dismissed an appeal for lack of jurisdiction
because there was no underlying contract--oral assurances
by a government official who was not a Contracting Officer
did not create a contract.
In
Eyak
Technology, the CBCA denied DHS' motion to dismiss an
appeal for lack of jurisdiction. The Government had relied
on the fact that the complaint requested, inter alia,
specific performance and injunctive relief. The Board
replied: "DHS neglects to refer to Eyak's prayer
for damages resulting from DHS's actions. We may grant
or deny Eyak's request for an equitable adjustment to
the contract resulting from DHS's actions in this
matter. While this alone provides a basis to deny DHS's
motion, we note that we are not limited to granting only
the relief sought in the complaint. . . . . In reaching the
decision on damages, the Board is likely to interpret the
contract and determine the validity of the three contract
modifications in issue. The net effect of a favorable
determination for Eyak could well provide the relief that
Eyak desires. The failure of Eyak to properly articulate
the remedy available from the Board does not deprive us of
jurisdiction over this matter."
In
Rockies
Express Pipeline, the CBCA held that a duly executed
"Precedent Agreement" (in which the Government
agreed to execute transportation contracts with the
contractor if the contractor would build a pipeline)
was a contract within the meaning of the CDA. The Board
also found that a Disputes clause purporting to give
exclusive jurisdiction in federal district court "to
the fullest extent allowed by law" must give way to
the CDA's choice of forums.
The ASBCA dismissed Sygnetics'
appeal for lack of CDA jurisdiction because the original
certification was not signed. In
Western
Plains Disposal, however, the Board denied a
government motion to dismiss an appeal for lack of
jurisdiction because the Board found that submission of a
Certification of Current Cost of Pricing Data instead of a
CDA certification was a correctable error.
In Inchcape
Shipping Services, the ASBCA analyzed whether the
claims before it involved maritime contracts, and,
therefore, admiralty jurisdiction.
In A.
Montano Electrical Contractor, the ASBCA held it
lacked CDA jurisdiction over a direct claim by a
subcontractor for monies allegedly owed it by its prime
contractor where the sub's claim was not sponsored by the
prime or a surety.
In Utility
Construction Co., the ASBCA held that a claim, which
stated the amount being claimed, satisfied the CDA
requirement for a sum certain, even though the Government
complained it could not ascertain how the delay portion of
the claim had been calculated.
In MAC
International FZE, the ASBCA held it lacked CDA
jurisdiction over claims for payment pursuant to orders
under an ID/IQ contract between the contractor and
Coalition Provisional Authority ("CPA"), funded
with Iraqi funds, for delivery of vehicles because the CPA
was not U.S. government agency subject to the CDA.
In
Kellogg
Brown & Root Services, the ASBCA denied a
government motion to dismiss (for lack of subject matter
jurisdiction under CDA) a claim for unpaid invoices on a
contract unilaterally transferred by the Corps of
Engineers to the Interim Iraqi Government and thereafter
funded by Development Fund for Iraq funds, which are
nonappropriated funds. The Board was forced to look to the
Restatement of Contracts for guidance concerning
assignments and delegations since neither the
Anti-Assignment Act nor any other similar federal law
covers a government transfer of a contract.
In
Lockheed
Martin Aspen Med Services, the
CBCA held it had CDA jurisdiction
over an appeal from a denial of a claim filed by one member of a
Contractor Team Arrangement because, according to the
solicitation's terms, each team member was in privity of
contract with the Government. (Note--this will not be the
result under most teaming agreements).
The
ASBCA dismissed an appeal by Tefirom
Insaat Enerji Sanayi ve Ticaret A.S. because the
contractor failed to provide a CDA certification.
In
Kelly-Ryan,
the ASBCA denied the Government's motion to dismiss as
premature (or, alternatively to stay proceedings
concerning) an appeal from a deemed denial of a $36
million claim of more than 3,500 pages after the
Contracting Officer had informed the contractor that a
decision would require a year from the time the claim was
originally submitted. The Board found that time period to
be unreasonable; I'm not so sure.
In
C.E.M.E.S.
S.p.A. , the ASBCA dismissed an appeal for lack of a
CDA certification.
Costs and Cost
Accounting Standards (CAS)
Medtek lost its appeal at the CBCA because it
failed to offer relevant evidence to prove any of its
three areas of claimed costs: extra construction costs;
lost profits; and attorneys fees.
In
The
Boeing Co., the CBCA held that the contractor was not
entitled to recover its "common costs" of a
defense against a False Claims Act suit, i.e.,
those costs attributable to both the successful and
unsuccessful portions of its defense.
Changes/Constructive Changes/Contract
Interpretation/Breach/Authority
In American
Ordnance, the ASBCA found the Government responsible
for excusable and compensable delays resulting from (i)
defective specifications; (ii) withholding of superior
knowledge; and (iii) breach of the implied duties of
cooperation and noninterference. The Board found that (i)
the Government's technical data package was seriously
defective, (ii) the Government failed to communicate its
superior knowledge of the problems to the contractor;
(iii) the contractor did not assume the risk of these
issues by, inter alia, entering a fixed-price
contract; and (iv) the Government compounded the problem
by its improper administration of contract performance as
these issues came to light.
In HMRTECH2,
LLC, the ASBCA held that a contractor's graduation
from the 8(a) program did not give the Government the
right to deny the contractor a fair opportunity to
continue to compete for further task orders for the
duration of a multiple-award schedule contract.
In Solid
State Electronics Corp., the ASBCA denied a
contractor's claim for costs of expedited delivery because
government employee who requested it did not have
authority to change the contract.
In the
Dixie
Construction Co., the contractor had a requirements
contract, which included the standard "Order
Limitations" clause (FAR 52.216-19). That clause
provided, inter alia, that the contractor was not
required to accept an order in excess of $500,000
(paragraph (b)) and that the Government was not required
to order part of a requirement from the contractor if the
whole requirement was more than $500,000 (paragraph (c)).
The Government had placed several orders in excess of
$500,000 with the contractor under both the predecessor
contract and the current contract (and the contractor
routinely had accepted such orders). The contractor filed
a breach claim when the Government ordered one such large
job from another firm without giving the contractor a shot
at accepting it. The Board granted summary judgment
in favor of the Government, reasoning that paragraph (c)
of the "Order Limitations" clause meant the
Government was free to bypass the contractor for any order
exceeding $500,000. I would have thought that, read
together (and in the contexts of (i) a requirements
contract and (ii) the course of dealing between these
parties), paragraphs (b) and (c) meant that the Government
should have offered the contractor a shot at the
above-$500,000 order and, then, if the contractor had
refused the order, the Government would not have been
bound to break the order into smaller pieces for him.
In PGDC/Teng,
Joint Venture, the ASBCA granted the Government's
motion to dismiss the contractor's claim for contract
reformation because there was no basis for its theories of
(i) breach of a duty to disclose superior knowledge, (ii)
mutual mistake, or (iii) unilateral mistake.
In Sigal
Construction Corp., the CBCA granted the contractor's
motion for summary judgment only as to entitlement,
finding the contractor entitled to recover lost profits
when, after award, Government did not provide it with all
the contractually required unit-priced work but, instead,
sought a better price from another contractor. The Board
wrote in part: "The
parties agree that by precluding Sigal from performing
some of the unit price work, GSA constructively terminated
for convenience a portion of the contract. One of the few
limitations on the Government�s right to terminate for
convenience is that the Government may not terminate
simply to get a better price for performing needed work.
[citation omitted] That is what GSA did here. It was a
breach of the contract."
In Qatar
International Trading Co., the ASBCA denied the
contractor's claim for fraudulent phone charges on illegal
clones of satellite phones the contractor had provided to
the Government.
In DWBH
Services, the ASBCA denied a claim that maintaining
lawns in areas where housing was demolished during
contract performance was outside the scope of the
contract.
In
Global Ship Systems, the CBCA dismissed an appeal because the
Government fulfilled terms of a settlement agreement even
though it applied amount owed to contractor to offset the
contractor's debt on another contract.
In denying the Government's motion
for summary judgment in ALK
Services, the CBCA noted that ordering the minimum
quantity in an ID/IQ contract does not automatically
insulate the Government from a claim of breach of the
covenant of good faith and fair dealing for failure to
consider the contractor for additional work.
In United
Healthcare Partners, the ASBCA held that, despite the
fact that a solicitation was labeled as an
"RFQ," repeated and clear language in the
document indicated the requested quote would become part
of a bilateral contract. The Board noted that the
Government's contrary view would result in an unreasonable
interpretation that would permit it to order a significant
number of increased services for free.
In Northrop
Grumman Systems Corp, Space Systems Division, the
ASBCA found that no government actions or inactions
(including remaining silent and nodding during the
contractor's presentation and shaking hands with him
afterwards) created a binding contract.
Nova Group lost its ASBCA appeals of (i) its Type I and
Type II Differing Site Conditions claims due to
insufficient evidence and (ii) its delay claim because it
did not comply with a contract requirement to present a
CPM analysis to support it.
In
Charleston
Marine Containers, the CBCA granted the contractor
summary relief based on its interpretation of FAR
52.247-64 ("Preference for Privately-Owned, U.S.-Flag
Commercial Vessels") and DFARS 252.247-7023
("Transportation of Supplies by Sea") because
neither of those clauses nor anything else in the contract
mentioned the possibility that the contractor would be
required to use Priority Two (P2) service, which is what
the Government had demanded of it.
In Shawview
Cleaners, the ASBCA held that the contractor was not
entitled to rely on alleged representations by government
employees that the wage determination attached to contract
was just a suggestion and not mandatory.
In Thorington
Electrical and Construction Co., the ASBCA granted the
Government's motion for summary judgment because an
unambiguous release barred the contractor's claim.
In Tekkon
Engineering Co. , the ASBCA held that (i) the
contractor did not prove the elements required to
establish a prior course of dealing; (ii) the contractor
was not entitled to adjustments under the EPA clause, in
part because there were no established prices on which to
base those adjustments; (iii) the contractor's subjective,
unexpressed reading of the contract, which was never
communicated to the Contracting Officer, could not form
the basis for its interpretation; and (iv) because the
Government was not required to place any orders during an
option period (and did not do so), the contractor could
not recover costs associated with that option period.
In AECOM
Government Services, the ASBCA granted the
Government's motion for summary judgment that the
contractor was not entitled to recover F.I.C.A. taxes on
offshore subsidiaries first imposed by the HEART Act six
months after the award of its fixed-price contract, at
least based on the contractor's theory of breach of the
implied warranty of good faith and fair dealing. The Board
noted that the contractor's alternative theory of mutual
mistake was not involved in the summary judgment
motion.
In
J.
A. McAmis, the
ASBCA held that the contractor was entitled to recover
increased haul costs and delay costs after haul routes to
the site became unavailable due to a local ordinance
passed after award (and rejected the Government's attempts
to rely on the "Permits and Responsibilities
Clause" and the sovereign acts doctrine to avoid this
result); but the contractor was not entitled to recover
its costs of the rejection of rock that complied with the
specifications because the contractor did not establish
the Government had rejected the rock.
The
CBCA denied
Arun
Enterprises' appeal
from a GSA claim for
unpaid rent and capital improvement deposits under a
building lease because the contractor presented no
credible evidence to support its contention that it was
entitled to adjustments to the building rental.
In
Nu-Way
Concrete Co., the CBCA denied a claim for extra work under
constructive change and implied ratification theories because
(i) the Contracting Officer did not require or ratify the
extra work allegedly ordered by the inspectors and warned the
contractor not to do it; and (ii) the contractor's proof of
quantum conflicted with its certification of costs and was
"inconsistent, incredible, and incomprehensible."
In
C.E.M.E.S.
S.p.A. , the ASBCA denied an appeal because (i) an
authorized Contracting Officer did not change the sequence
of work and (ii) although the contractor was worried about
the presence of unexploded ordnance in the construction
site and took extra precautions based on its fears, it did
not encounter any and, therefore, could not recover for a
Differing Site Condition.
In
Thorington
Electrical and Construction Co., the ASBCA held that,
in a firm, fixed-price construction contract, absent an
EPA clause, the contractor was not entitled to recover its
increased costs for asphalt caused by an unusually large
spike in gasoline prices.
Inspection
The ASBCA
held the Government did not unreasonably delay
consideration of, or improperly reject, a subcontractor's
submittals in a construction contract in Clark
Construction.
In Laser
Manufacturing, the ASBCA denied a claim for alleged
changes in inspection and acceptance criteria.
The ASBCA
denied the request for reconsideration by American
Renovation and Construction Co. concerning the Board's
earlier decision upholding the Government's revocation of
acceptance of the contractor's work despite its claims of
defective specifications.
Terminations
The ASBCA upheld the default
termination of ZIOS
Corporation.
The CBCA upheld the default
termination of (and subsequent government claims for
liquidated damages and excess reprocurement costs against) C-Shore
International, rejecting the contractor's contention
that the Government's claims were untimely and dismissing
the contractor's cross complaint for lack of jurisdiction
because that claim had not been submitted to the
Contracting Officer for a decision.
In Yonir
Technologies Inc. , the ASBCA upheld a default
termination based on the contractor's failure of first
article testing.
In
AmerescoSolutions,
the ASBCA denied the contractor's motion for summary
judgment in a default termination appeal because the
contractor did not establish the Government had waived the
due date under the "unusual circumstances" legal
standard required to establish waiver in a
construction contract default termination appeal.
In
Smart
Power Systems, the ASBCA granted the Government's
motion for summary judgment and upheld a default
termination for failure to make progress because the
contractor failed to cure its performance after (or
provide an adequate response to) a cure notice.
Purchase Order and Task Orders
In HMRTECH2,
LLC, the ASBCA held that a contractor's graduation
from the 8(a) program did not give the Government the
right to deny the contractor a fair opportunity to
continue to compete for further task orders for the
duration of a multiple-award schedule contract.
Quantum
In Symbion
Ozdil Joint Venture, the ASBCA decided that claims for
extra work on a contract that was subsequently terminated
for convenience should be priced at the unit price stated
in the contract specifications rather than at cost
pursuant to the "Changes" clause.
In States
Roofing, the ASBCA determined the
quantum owed the contractor after the Court of Appeals for
the Federal Circuit reversed
and remanded the Board's prior decision.
SUFI Network Services, Inc., squeezed even more money out of
the ASBCA after the contractor already had seen its
recovery double as a result of the Board's prior
decision on its request for reconsideration.
In Whiting-Turner
Contracting Co., which principally involved questions
of accord and satisfaction and the interpretation of
releases in bilateral modifications, the ASBCA held that
the contractor was not entitled to interest on claims
because its contract was with a nonappropriated fund
instrumentality.
In ALKAI
Consultants, the ASBCA determined some of the types of
costs that are recoverable under the commercial items
"Termination for Convenience" clause (FAR
52.212-4).
In
W.
G. Yates & Sons Construction Co., the contractor had a
fixed-price construction contract incorporating a
Davis-Bacon Act wage determination, which required a wage
rate of $10 per hour (this, and the following, figures are
fictionalized for the sake of simplicity). Part of the
contract price was attributable to a subcontract, which
was bid on the basis of an estimated 5,000 hours of labor
covered by the wage determination. After award, the
Government discovered it had used the incorrect wage
determination in the contract, so it retroactively
incorporated a revised wage determination that called for
wages of $20 per hour. The subcontractor ended up
incurring 10,000 hours to complete the job. The contractor
submitted a claim under the " Changes" clause on
behalf of its sub for 10,000 hours (the sub's total
performance hours) times the $10 difference between
the erroneous and revised wage determination hourly rates,
plus associated profit and overhead. The Government argued
that (i) the claim should only be for the originally
estimated 5,000 hours times the $10 difference and (ii) it
should not include any added overhead and profit.
The case involves questions concerning the proper
measurement of an equitable adjustment under the "
Changes" clause and whether the " Changes"
clause was even the appropriate vehicle for recovery. The
CBCA opted for the contractor's method of calculation.
In
Nu-Way
Concrete Co., the CBCA denied a claim for extra work under
constructive change and implied ratification theories because
(i) the Contracting Officer did not require or ratify the
extra work allegedly ordered by the inspectors and warned the
contractor not to do it; and (ii) the contractor's proof of
quantum conflicted with its certification of costs and was
"inconsistent, incredible, and incomprehensible."
Procedure
The CBCA was not persuaded by a
contractor's contentions that its change of counsel and
its counsel's illness excused its failure to file a timely
request to reconsider an order dismissing an appeal for
failure
to prosecute.
The ASBCA rejected a contractor's
request for a mistrial
based on its contention that the Government, inter alia,
had tampered with the hearing transcript.
In Kaman
Precision Products, the ASBCA refused the Government's
request to stay proceedings on an appeal from a default
termination (and related claims) during the pendancy of an
FCA claim against the contractor in district court. The
Board reasoned that the stigma associated with a default
termination that did not involve the allegations in the
FCA suit outweighed the Government's interest in the stay.
(The Board did permit a brief stay on one issue directly
related to the FCA suit).
In Thorington
Electrical and Construction Co., the ASBCA denied a
performance and payment bond surety's motion to intervene
in an appeal because the surety was not a contractor with
respect to the claims involved in the appeals.
In General
Dynamics Ordnance and Tactical Systems, the ASBCA held
it had the authority to (and, therefore, did) grant
appellant's request for a protective order allowing it
access to certain discovery materials involving trade
secrets, but then stayed that decision for 60 days to
allow the Government to assess its litigation options,
including a possible appeal to the Federal Circuit.
The CBCA denied Springcar's motion
to re-open the record and reconsider the Board's prior
decision because (i) the Board could rely on a
quantum exhibit in the record to which the contractor had
not objected, especially when the contractor had the
opportunity to, and did not, question a hearing witness
about its methodology, and (ii) and the fact that the
contractor allegedly had been "surprised" by
testimony at the hearing did not excuse its failure to
pursue the subject at the time, especially because the
person identified in the testimony had been on the
Government's discovery list.
In Bruce
E. Zoeller, the ASBCA denied the contractor's motions
for sanctions against the Government for failing to
produce discovery documents that the Government was unable
to locate.
In
Kellogg
Brown & Root Services, the ASBCA denied government
motions to stay appeals pending resolution of a suit under
the False Claims Act because (i) there was insufficient
similarity between the actions; (ii) the Government did
not establish there would be prejudice to its suit from
proceeding with the board appeals; and (iii) the
indefinite length of requested stay weighed against
granting it.
Equal Access to Justice Act
In Lasmer
Industries, the ASBCA held that the Government's
rescission of a claim, which resulted in the Board's
dismissal of the contractor's appeal, did not make the
contractor a "prevailing party" entitled to and
EAJA award.
Court of Federal
Claims
Contract Disputes
Act (CDA) / Tucker Act / Jurisdiction / Standing
In U.
S. Home, the court held it had jurisdiction over
claims for breach of contracts for the sale of real
property but lacked jurisdiction over various claims based
on CERCLA because it is not a money-mandating statute.
In Paradigm
Learning, the court held it had CDA jurisdiction over
a claim that the Government breached a schedule contract
by disclosing proprietary information included in
delivered items under the contract in violation of the
contract and a related nondisclosure agreement.
In Allstar
Mayflower , the court held that a claim for
reimbursement of PowerTrack Fees under transportation
services contracts was governed by the three-year statute
of limitations of the Interstate Commerce Act rather than
by the six-year statute of the CDA.
In Todd
Construction, the court held that, although
contractors may have CDA claims against government
performance evaluations that do not comply with FAR
36.201, Todd failed to allege a causal connection between
the Government's alleged procedural flaws in conducting
the evaluation and any injury to Todd (i.e., an
error in the final evaluation rating). The court also
concluded there was no abuse of discretion by the
Government in its ultimate finding that plaintiff's
performance was unsatisfactory.
In Gonzalez-McCaulley
Investment Group, the court (over the Government's
objection) has granted one plaintiff leave to amend a
complaint that failed to include the jurisdictional
allegations required by the rules for both a CDA claim and
a bid protest.
In Peninsula
Group Capital Corp., the court found it lacked
jurisdiction over a dispute because the parties had never
entered into a written contract at the conclusion of
negotiations.
In BLR
Group of America, on reconsideration of its prior
decision, the court dismissed the contractor's suit
for lack of jurisdiction because the contractor's written
objections to an unfavorable CPAR did not constitute a CDA
claim. There was no demand for a decision by the
Contracting Officer, and the Contracting Officer
reasonably interpreted the submission as comments
submitted pursuant to FAR 42.1503(b). It should be
noted that the case does not stand for the proposition
that an objection to a CPAR evaluation can never be a CDA
claim--only that the contractor's submission in this case
was not sufficient to identify itself as a such a claim.
Subsequently, the
court denied the contractor's motion
for partial reconsideration because
neither the contractor's comments disagreeing with the
Government's performance assessment report nor the
contractor's counsel's email to the Contracting Officer
attempting to convince her to withdraw or change the
Government's evaluation constituted a CDA claim. The court
notes that two inquiries beyond examining the regulatory
definition of a CDA claim are required: "First,
. . . the court must examine the intent of the contractor
as expressed in the submission. . . . Second, the court is
required . . . to look beyond the [regulatory] definition
of a CDA claim and take into account the particular facts
of the case."
In
YRC,
Inc., the court held it lacked jurisdiction over a
subcontractor's claim against the Government for payments
a defaulted contractor failed to make to it because there
was no express or implied-in-fact contract between the
plaintiff and the Government and because the federal
officials who dealt with plaintiff and made arrangements
to make some payments to it had no authority to contract
on behalf of the Government.
In L.A.
Ruiz Assocs., the court held it lacked jurisdiction
over a contractor's counterclaim in response to an
affirmative claim by the Government because there was no
showing the two claims arose from the same set of
operative facts, and the contractor had not submitted its
counterclaim to the Contracting Officer for a decision;
the court, however, did find jurisdiction over the
contractor's claim for a declaratory judgment to the
effect that Government's affirmative claim against the
contractor was null and void.
In FloorPro,
the court found a case was not barred by the Statute of
Limitations because the contractor had diligently pursued
its rights even though circumstances had conspired to drag
things out for many years.
In System
Planning Corp., the court held that the Tucker Act's
six-year Statute of Limitations does not apply to claims
by a contractor who has elected to proceed under the CDA.
In International
Industrial Park, the court held that because a barter
agreement for the relocation of an easement in
return for an undertaking to pave roads on the easement
was not a contract within meaning of the CDA, the
plaintiff was not required to file a claim with the
Contracting Officer prior to filing suit in court.
In Environmental
Safety Consultants, the court (pursuant to Rules
12(b)(1) and 12(b)(6)) dismissed PPA, takings, and
punitive damages claims, as well as (i) a claim first
submitted when the firm was no longer a contractor with
the United States and (ii) a claim barred by the CDA's
statute of limitations.
In Malinda
Baldwin, the court held that failing to submit a
written demand to the Contracting Officer and to specify a
sum certain are not "harmless errors" that can
be overcome by reference to the plaintiff's
"intent," but, rather, are fatal CDA
jurisdictional flaws.
Changes/Breach/Contract
Interpretation/Defective Specs/Authority
In BioFunction,
the court denied the plaintiff's claim because (i) the
government employee who allegedly entered a "side
agreement" to a Postal Service contract lacked
contracting authority and, in any event, (ii) the
plaintiff did not establish that the side agreement
provided for any monetary compensation.
In United
Constructors, the court denied (i) a Type I Differing
Site Conditions claim because the conditions were
reasonably foreseeable at time of bidding and (ii) a
constructive acceleration claim because contractor's own
actions contributed to the delay.
In
D'Andrea
Brothers, LLC, the court denied the
Government's summary judgment motion to dismiss a claim
that it had violated its obligation of good faith and fair
dealing under a CRADA by "bad-mouthing" HooAH!
energy bars.
The court awarded plaintiffs
approximately $9,000,000 in the Fireman's
Fund case, which concerned construction at the
Montgomery Point Lock and Dam Project on the White River
in eastern Arkansas and various claims involving defective
specifications, breach of the covenant of good faith and
fair dealing, the responsibility for labor shortages and
resulting increased wages, critical path analyses, delay
claims, and government counterclaims.
In
Parsons-UXB
Joint-Venture, the court denied the Government's motion
for summary judgment, which was based on the Government's
argument that the Limitation of Cost or Limitation of Funds
clause precluded the contractor's recovery for state general
excise taxes because the contractor had reason to foresee the
cost overrun when there was still funding available and when
the contractor could have protected itself by stopping work.
Costs;
Cost Accounting Standards (CAS)
In the latest decisions in the Raytheon
and General
Electric segment closing cases, the court granted the
Government's motions for partial summary judgment and held
that (i) Raytheon's post retirement benefit costs
are not pension costs under CAS 412 and cannot be included
in segment closing adjustments under CAS 413 and (ii)
General Electric's Pay-As-You-Go post-retirement benefit
costs are not covered by CAS 413 and cannot be included in
segment closing adjustments.
Release; Accord and
Satisfaction
In IMS
Engineers-Architects , the court held that a
contractor knew about Government's improper contract
administration and termination prior to the time it signed
a release, which was, therefore, knowing, valid, and
enforceable.
In Shell
Oil, the court held that neither the Anti-Deficiency
Act nor settlement agreements closing out certain WWII gas
production contracts in the late 1940s insulated the
Government from liability for CERCLA clean-up costs. The
court based its finding on the contracts'
"Taxes" clause, which required the Government to
reimburse the contractors for "any new or additional
taxes, fees, or charges, other than income, excess
profits, or corporate franchise taxes, which Seller may be
required to pay by any municipal, state, or federal law in
the United States or any foreign country to collect or pay
by reason of the production, manufacture, sale or delivery
of the [avgas]." The court concluded CERCLA clean-up
costs were a "charge" within the meaning of that
clause.
Quantum
The court awarded Englewood
Terrace Limited Partnership contract damages for HUD's
breach of a housing assistance payment (HAP) contract but
rejected the contractor's claim for "lost equity
damages" for failure of proof.
Equal
Access to Justice Act (EAJA)/Attorneys Fees/Litigation
Expenses/CDA Interest/Prompt Payment Act Interest
In The
Dallas Irrigation District, the court had occasion to
address many elements of EAJA awards including, inter
alia, attorney fees, a request for an enhanced award,
COLA, paralegal fees, legal research expenses, attorney
travel expenses, deposition, hearing, and trial transcript
costs.
The court held that The
Marquardt Co. was not entitled to either CDA or PPA
interest on the time required for Government to make
payments under a global settlement agreement of various
underlying contracts because the agreement was not a
contract within the meaning of those statutes, because it
did not provide for a definite time for payment to be
made, and because it provided a different remedy if
payment were not made.
In United
Partition Systems, after concluding that the
contractor was entitled to an EAJA award because the
Government's position in the litigation was not
"substantially justified," the court noted that
the "precise question at hand is whether an
expenditure listed as a 'cost' under 28 U.S.C. § 1920 is
recoverable as an 'expense' under 28 U.S.C. §
2412(d)(1)(A), particularly in an instance where 'costs'
were not awarded to the plaintiff." The court held
that it is.
Procedure
In Bell
BCI, the court held that, when there is no just reason
for a delay, a contractor may obtain immediate recovery in
the form of partial summary judgment on claims affirmed on
appeal without waiting for its remaining claims to be
resolved.
In Scott
Timber, the court decided to allow testimony from a
remote site via videoconference from a witness who was too
far from Washington to travel easily to the hearing. The
court also granted a motion to exclude all other persons
from the room from which the witness would be testifying
to avoid any possible prejudice from having
representatives of one party, but not the other, present
during the testimony.
In Croman
Corp., the court refused to allow the Government to
re-open discovery six months after it had closed, in order
to explore possible fraud counterclaims the Government
claimed it belatedly noticed in reviewing responses to the
original discovery requests.
Court of Appeals for
the Federal Circuit
Jurisdiction/Standing/Res
Judicata
The CAFC, in Resource
Conservation Group, held that the Court of Federal
Claims does not have jurisdiction over
nonprocurement protests under 28 U.S.C. 1491(b)(1), but
does have jurisdiction over claims for breach of an
implied-in-fact contract under 1491(a)(1) for claims where
the Administrative Dispute Resolution Act (ADRA) does not
provide a remedy. Thus, according to the court, the ADRA
did not repeal the Court of Federal Claims pre-existing
jurisdiction over implied-in-fact contracts in
nonprocurement cases.
In M.
Maropakis Carpentry, the court, over a vigorous
dissent, affirmed the Court of Federal Claims and held
"that a contractor
seeking an adjustment of contract terms must meet the
jurisdictional requirements and procedural prerequisites
of the CDA, whether asserting the claim against the
government as an affirmative claim or as a defense to a
government action."
In
a nonprecedential decision, the court reversed the Court
of Federal Claims and held that Norma
C. Sullivan and Donald E. Sullivan, who were injured
by car driven by Postal Service contractor's employee,
could not maintain an action against the Postal Service
for breach of contract as third party beneficiaries for
the Postal Service's failure to enforce a contract
provision requiring the contractor to obtain additional
insurance because that failure was not a breach of the
contract (which did not require the Postal Service to
enforce the provision).
Contract
Interpretation/Changes/Authority/Breach
In Precision
Pine & Timber, the CAFC reversed the
Court of Federal Claims and held that the Forest Service
did not breach either (i) an express warranty (because
none existed) or (ii) the duty of good faith and fair
dealing (because the Government's actions did not target
the plaintiff) in suspending timber harvesting contracts
in 1996 while the Forest Service engaged in consultations
with the Fish & Wildlife Service regarding an
endangered species (the spotted owl) that were required by
another court in separate litigation.
The CAFC also reversed
the Court of Federal Claims in the Agredano
case and held the "as is where is" warnings at a
federal vehicle auction meant the Government bore no
responsibility on a theory of breach of an implied
warranty when the purchasers had to spend a year in a
Mexican prison after hidden marijuana was discovered in
the vehicle.
In DLT
Solutions , the court reversed the prior
ASBCA decision and held that, following the
termination of the contractor, the Government did not
replace contracted-for software in violation of a delivery
order's Non-Substitution clause.
In
vacating the judgment of, and remanding the case to, the
Court of Federal Claims, the CAFC held, in Klamath
Irrigation District, that impossibility of performance
is a factor to be taken into account in considering the
sovereign acts doctrine.
Costs/Cost
Accounting Standards
In the important ATK
Thiokol decision, the court affirmed the Court of
Federal Claims and held that, for purposes of determining
whether costs qualify as IR&D costs, the phrase
"required in the performance of a contract" in
the definition of IR&D costs means the same thing as
it does in the definition of B&P costs, i.e.
"costs that are specifically required by the
contract," not "costs that are
necessary in order to perform the contract."
The Air Force lost its appeal to the
CAFC of the ASBCA's decision in the Lockheed
Martin case concerning whether the F-22 contract was
an "affected CAS-covered contract" within the
meaning of FAR 30.602(3)(1993) concerning a change in cost
accounting practices.
In
Arctic
Slope Native Ass'n, the court affirmed the CBCA and
held that (i) the contractor was not entitled to
reimbursement for costs that exceeded available
appropriations because the contract contained explicit
"subject to the availability of appropriated
funds" and "not to exceed" language; and
(ii) the Government did not breach the contract by failing
to request additional appropriations because there was no
contractual requirement that it do so. The court also
rejected the contractor's argument that the statutory
funds were sufficient to reimburse its costs, alone. The
court noted that, if it were to allow this approach, and
all similarly situated contractors also used it, the
result would be total reimbursements exceeding the
available appropriations, which would circumvent the
explicit cap included in the statute, itself.
This
website links to resources on the web concerning
government contracting. It is not intended to provide
legal advice. Moreover, I do not vouch for the
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