Boards of Contract Appeals (ASBCA,
CBCA, PSBCA, and GAOCAB)
Jurisdiction/Standing/Timeliness/Contract
Disputes Act (CDA) Issues
In Tobias
Schunck, the CBCA held that a notice of appeal sent by
Federal Express, which did not arrive at the Board until 91
days after the contractor had received the Contracting
Officer's decision, was untimely.
In
Lockheed
Martin Services, Inc., the ASBCA denied (for lack of
jurisdiction) the Government motion for partial summary
judgment seeking return of license costs previously paid to
the contractor because there was no underlying decision by the
Contracting Officer asserting the claim.
In Kellogg
Brown & Root Services, Inc., the ASBCA exercised its
discretion and dismissed two appeals without prejudice under
ASBCA Rule 30 because False Claims Act litigation had been
instituted in federal district court covering the same claims.
In Servicios
y Obras Isetan S.L., the ASBCA dismissed an appeal because
the underlying contract had been obtained through fraud in the
inducement (the submission of fictitious documents) and,
therefore, was void ab initio.
In
Executive
Personnel Services, Inc., the CBCA dismissed an appeal
filed 92 days after receipt of the Contracting Officer's
decision, as untimely. However, in Premier
Group, the ASBCA denied the Government's motion to dismiss
an appeal as untimely due to the lack of a postmark on an
appeal that was received by the Board more than 90 days after
the contractor received the Contracting Officer's decision.
The Board accepted as sufficient a declaration from the
appellant's attorney that he placed the notice appeal in a
U.S. Postal Service mail receptacle on the 90th day.
In
CB
of Bozeman, Inc., dba Maintenance Patrol, the ASBCA held
that the Government's failure to notify the contractor of its
appeal rights in a Contracting Officer's
"memorandum" denying a claim, coupled with
subsequent actions that led contractor to believe the
Government was reconsidering its decision, excused the
contractor's failure to appeal the original
"decision" within 90 days. On the merits, however,
the Board held that yearly releases executed by the contractor
precluded its subsequent claims for additional SCA wage
increases.
In
Fluor
Corp., the ASBCA held that (for purposes of determining
whether certain government claims were barred by the CDA's
six-year statute of limitations) (i) the Government's CAS
noncompliance claim first accrued as of date the Government
completed its CAS noncompliance audit for all payments made to
contractor prior to that date; and (ii) thereafter, the
Government's claims were in the nature of a continuing claim
that accrued for each subsequent payment to the contractor as
it was made.
Jurisdiction
In Tele-Consultants,
Inc., the ASBCA held (i) that the appellant need only
allege a contract existed in order to establish the Board's
jurisdiction and (ii) that whether such a contract actually
was formed goes to the merits of the appeal.
In
JRS
Management, the CBCA held it lacked jurisdiction over a
claim that relied on the same operative facts (the
Government's allegedly improper performance evaluations) as a
prior claim that had not been timely appealed to the Board.
In
Temescal
Plaza, LLC, the PSBCA held it lacked jurisdiction over
(i) a contractor's claims for specific performance and
equitable relief, (ii) monetary claims not previously
presented to the Contracting Officer for a decision, and
(iii) an indemnification claim prematurely brought before
the contractor had been found liable. The Board, however,
retained jurisdiction over the contractor's claim for
interpretation of a contractual provision.
In
Taj
Al Safa Co., the ASBCA dismissed (without prejudice) an
appeal for lack of CDA jurisdiction because it was
questionable whether the contractor's emails constituted a
demand for a Contracting Officer's decision on a claim for a
sum certain, but, in any event, there was no certification of
an amount sought in excess of $100,000.
In United
Healthcare Partners, Inc., the ASBCA dismissed the
monetary portion of an appeal from a termination for cause
because the contractor had not previously submitted that part
of the claim to the Contracting Officer for a decision.
In Selrico
Services, Inc., the CBCA held it had jurisdiction over a claim that
the Government had improperly offset against appellant's contract funds
that Government had mistakenly paid to another contractor (even
though the Government contended the two entities were one and the same).
In
Impact
Associates, Inc., the ASBCA held it lacked jurisdiction
over a claim under a Corps of Engineers FSS task order because
the dispute involved the interpretation of provisions in the
FSS contract, itself, which must be decided by the GSA
schedule Contracting Officer, rather than by the Corps' KO.
In
R&G
Food Services, Inc. d/b/a Port-A-Pit Catering, the CBCA
held it lacked CDA jurisdiction over claim for "not less
than" a specified amount because the claim was not for a
sum certain.
In MOQA
- AQYOL JV, LTD , the ASBCA denied the Government's
motion to disqualify an individual from representing the
contractor before the Board because the motion was based on an
alleged violation of a criminal statute, and the Board lacks
jurisdiction to make such determinations.
In
Soto
Construction Co. the CBCA dismissed an untimely appeal for lack of
jurisdiction, reasoning that the reference in the Contracting
Officer's decision to the right to appeal to "the agency
board of contract appeals" was sufficient and rejecting
the contractor's allegation that the generic reference misled
it into believing it would be appealing to some department of
the procuring agency.
In MAC
International FZE, the ASBCA held it lacked jurisdiction
over claims for PPA interest because the contract was not with
the Government (see prior
decision) and no PPA claim had been submitted to the
Contracting Officer for a decision.
In
Environmental
Safety Consultants, Inc., the ASBCA granted the
Government's motion to dismiss the contractor's appeal because
the underlying invoice, which had resubmitted an earlier
routine progress payment request, included neither a request
for a Contracting Officer's decision nor the the required CDA
certification. However,
in Tricon
Timber, LLC, the CBCA held that in the circumstances of
the case, the contractor's submission satisfied the
requirements for a CDA claim even though it was labeled an
"invoice," and the fact that the Contracting
Officer's subsequent decision did not advise the contractor of
its appeal rights did not deprive the contractor of the right
to appeal.
In
Hart
Ventures, Inc., d/b/a A-1 Fire Services, the CBCA held it
lacked jurisdiction over an appeal from the termination of a
blanket purchase agreement because such agreements are not
contracts.
In Corporate
Systems Resources, Inc., the ASBCA held it lacked jurisdiction
over a claim by a subcontractor under a Washington
Metropolitan Transit Authority prime contract.
In Hewlett-Packard
Co., the ASBCA held it had jurisdiction over a dispute
involving Army delivery orders because the resolution of the
appeal required the interpretation of only those delivery
orders, not the underlying GSA schedule contract or BPA.
In
Summit
Commerce Pointe, LLC , the CBCA dismissed an appeal by the
assignee of lease for lack of jurisdiction because the
Government had not accepted the assignment.
In
EHR
Doctors, Inc., the CBCA dismissed another appeal for lack
of jurisdiction because it involved an uncertified claim in
excess of $100,000. The ASBCA dismissed two more appeals for
the same reason: Baghdadi
Swords Co. and Lael
Al Sahab & Co.
In Amina
Enterprise Group, LTD, the ASBCA held that gratuitous
statements in a pro se appellant's notice of appeal
from a default termination regarding remedies the Board does
not have the power to grant and a possible future contractor
claim did not deprive the Board of jurisdiction over this
appeal.
In
Allen
Jerry Oliver, the PSBCA dismissed an appeal filed absent
an underlying claim and a Contracting Officer's decision.
In Redmond
City Center, L.L.C., the PSBCA denied the Postal Service's
motion to dismiss for lack of jurisdiction and held that an
employee of one firm was specifically authorized to submit the
claim and then the notice of appeal as the representative of
the actual party in interest.
In Postal
Group, LLC, the PSBCA denied the Postal Service's motion
to dismiss a claim under a theory of laches because the Postal
Service had not shown it was prejudiced by any delay in the
claim submission.
In International
Oil Trading Co., the ASBCA held that it has CDA
jurisdiction over the Government's affirmative defense that
contracts were obtained by bribery and were void ab initio.
In
Protecting
the Homeland Innovations, LLC, a non-CDA appeal involving
the Washington Metropolitan Area Transit Authority (WMATA),
the ASBCA held it lacked jurisdiction over a contractor's
claim of promissory estoppel because it involved the assertion
of a contract implied-in-law, and the WMATA had not waived
sovereign immunity with respect to such claims.
In Xerox
Corp., the ASBCA dismissed (for lack of jurisdiction) an
appeal involving an Army National Guard Bureau delivery order
because resolving the dispute would require interpretation of
the underlying FSS contract, which is a matter for the GSA's
Contracting Officer and the CBCA.
In Kellogg
Brown & Root Services, Inc., the ASBCA exercised its
discretion and denied the Government's motion to dismiss a
nonmonetary appeal regarding the proper interpretation of a
contract clause even though the Government had not taken any
action (in years) to enforce its interpretation by denying any
costs involved in the dispute.
In Henry
Stranahan, the ASBCA held it lacked jurisdiction over an
appeal from a decision to debar a contractor. In Alalamiah
Technology Group Co. (K.S.C.C.), the ASBCA held it lacked
jurisdiction over an appeal by disappointed bidder.
In
Mawaraa
AlBihar Co., the ASBCA held it lacked jurisdiction over an
uncertified claim in excess of $100,000.
In
EJB
Facilities Services, the ASBCA denied both (i) the
contractor's motion to dismiss a government claim for fire
damages because the Board found it is was just different
theory of recovery for the same claim previously decided by
the Contracting Officer, and (ii) the Government's motion to
dismiss the contractor's complaint as a request for
declaratory relief not previously decided by Contracting
Officer because the Complaint was just a response to the
Government's claim that included a suggestion as to why the
Board should deny that claim.
In
Ft.
McCoy Shipping & Services, the ASBCA held that it had
CDA jurisdiction over an appeal commenced by a letter
submitted directly to the Contracting Officer within 90 days
of the his decision on a claim because the letter (i) referenced the
Contracting Officer's decision, (ii) included the contract number,
(iii) expressed dissatisfaction with the decision, (iv) made
it clear that the contractor was seeking resolution by a higher authority, and
(v) stated: "This letter serves as my notice of intent to appeal."
In
CB
of Bozeman, Inc., dba Maintenance Patrol, the ASBCA held
that the Government's failure to notify the contractor of its
appeal rights in a Contracting Officer's
"memorandum" denying a claim, coupled with
subsequent actions that led contractor to believe the
Government was reconsidering its decision, excused the
contractor's failure to appeal the original
"decision" within 90 days. On the merits, however,
the Board held that yearly releases executed by the contractor
precluded its subsequent claims for additional SCA wage
increases.
In
Development
& Evolution Construction Co., the ASBCA held it lacked
CDA jurisdiction over an appeal demanding a convenience
termination settlement amount in excess of $100,000 because
none of the prior termination settlement proposals submitted
to the C.O. had been certified, even though the most recent of
those proposals had been for less than $100,000.
In
Metag
Insaat Ticaret A.S., the ASBCA held that, under the concept of a
"deemed denial," the Board had jurisdiction over an appeal
which had been filed with the Board (i) before the C.O. had issued a
decision on the underlying claim and (ii) less than 60 days after that
original claim had been filed with the C.O., because, at the time the
Government had moved to dismiss the claim for lack of jurisdiction,
and indeed even as of the date of the Board's decision on that motion,
the C.O. still had not issued a decision on claim (and many
more than 60 days had, by then, elapsed).
In
Public
Warehousing Co. K.S.C., the ASBCA held that the Contracting
Officer's repeated delays (totaling more than four years) in issuing a
decision on the contractor's claim (in order to wait for judicial
outcomes in separate fraud cases) gave rise to an appealable deemed
denial.
In
Linc
Government Services, LLC , the ASBCA held that (i) given
all the surrounding circumstances, the contractor's letters to
the Government implicitly requested Contracting Officer's
decisions concerning the interpretation of the contract's
terms and, therefore, were valid CDA claims; and (ii) the
contractor complied with the CDA's requirements by sending its
claim letter to the Contracting Officer identified in the
contract, and the fact that a new Contracting Officer (with a
different address) had been assigned without notice to the
contractor did not invalidate the claim submission.
In
Duncan
Aviation, Inc., the ASBCA held that (i) a claim
certification submitted subsequent to, but clearly
referencing, a prior REA essentially converted the REA into a
CDA claim; and (ii) a request for a Contracting Officer's
decision was implicit in the correspondence read as a whole.
In
The
Boeing Co., the ASBCA (i) refused the contractor's request
to dismiss claims related to several contracts simply because
the Government had misidentified one contract number and (ii)
allowed the Government to correct the number in the record.
In
WorleyParsons
International, Inc., the ASBCA held it lacked CDA
jurisdiction over a government claim against only one member
of a JV, when the JV was the contracting entity.
Changes/Constructive Changes/Contract
Interpretation/Breach/Authority
In
Drennon
Construction & Consulting, Inc., which involved a
contract to widen a road, the work was delayed and truncated
after a hill the contractor was required to excavate
collapsed, and the CBCA held that the collapse was due
to defective specifications and a differing site condition,
making the resulting period of suspension of the work
unreasonable per se and entitling the contractor to
compensation.
In Lacey
Newday Consulting LLC, the CBCA denied the contractor's
claim that a mistake in bid justified a higher price for
ground beef because, under the RFQ, the contractor
accepted the Government's "offer" (purchase order)
by delivering in accordance with the terms of the purchase
order.
In ECC,
International, the ASBCA denied all delay claims by a
construction contractor for various constructive changes,
including defective government-furnished property,
interference with performance, and acceleration, most of which
boiled down to the contractor's belief that the Government's
representatives had been too strict in enforcing the
contract's requirements.
In ThinkQ,
Inc., the ASBCA held that the Government's was the only
reasonable interpretation of term "utilized" in the
"Placing Orders" clause.
In New
Iraq Company 2003, the CBCA held it lacked jurisdiction
over an appeal from a decision by an Army Contracting Officer.
In Jaynes
Corp., the ASBCA relied on the rule of contract
interpretation that contracts must be read as a whole in
finding for the contractor because the Government's
interpretation would have rendered several portions of the
contract "inoperative, meaningless, and useless."
In Colorado
River Materials, Inc., d/b/a NAC Construction, the ASBCA
held (i) that a written, bilateral settlement agreement, which
applied to "all claims and all potential claims"
related to a contract, acted as an accord and satisfaction and
(ii) that there was no evidence in the record to support the
contractor's contention that the Government had misled
contractor into believing its claim was excepted from the
agreement and was still being considered by Government.
In
ALK
Services, Inc., although the CBCA agreed with the
contractor that contracts for grounds maintenance services at
various national cemeteries were requirements contracts and
recognized that the contractor had presented some anecdotal
evidence that the Government had diverted some work that
should have been performed by the contractor to the
Government's own employees, the Board nevertheless held that
the contractor had failed to present sufficient evidence to
establish either bad faith by the Government in failing to
exercise an annual option or to quantify the damages allegedly
flowing from the diversion of work.
The ASBCA, in Troy
Eagle Group, granted the Government's motion for summary
judgment that delays in performance of a contract in Iraq
caused by gate and border closures, road blockages, and
requirements that shipments be made in military convoys,
whether ordered by the United States (in its sovereign
capacity) or the Iraqi government, were not compensable.
In
TigerSwan,
Inc., the Government (i) initially awarded a contract to
the plaintiff for security services in Iraq, (ii) then (in the
midst of protests filed by competing offerors, including the
incumbent) terminated the contract for convenience after it
concluded it no longer needed many of the services; (iii)
awarded a second contract for a reduced scope of work to the
plaintiff after a quick turnaround solicitation limited to the
original competitors; (iv) but then terminated that contract
for convenience as well (and awarded a sole source contract to
the incumbent, which was already operating under a bridge
contract due to the prior protests) on the basis that the
protests and the resulting stop work order and delays had made
it impossible for the plaintiff to mobilize and complete the
work in a timely manner. The court denied the Government's
motion to dismiss the plaintiff's claims for breach of
contract based on its objections to the terminations for
convenience, but granted the motion to dismiss its bid protest
claims for bid preparation costs, because it had not bid on
the sole source contract, which had been completed by the time
of the decision.
In
Lakeshore
Engineering Services, Inc., the court granted the
Government's motion for summary judgment and held the
contractor was not entitled to recover under any of its
theories (including, inter alia, breach of the warranty
of specifications, mutual mistake, and unilateral mistake) for
price increases based on alleged discrepancies between local
prices and those contained in a pricing book incorporated in
the solicitation because the book contained explicit warnings
that those prices might not be accurate and that the
contractor should verify pricing for itself and should adjust
its bidding coefficient accordingly.
In
Raytheon
Missile Systems Co., the ASBCA first imputed DESC JP-10
fuel price increases to the contracting party (NAVAIR) and
then held that NAVAIR breached its implied duty not to hinder
or interfere with the contractor's performance by subjecting
the contractor to fuel price increases caused by conditions
outside the set of risks the contractor assumed in its
fixed-price contract.
In Tiger
Enterprises, Inc., the ASBCA denied the contractor's
appeal, finding that the Government had properly paid the
contract amounts directly to a bank under valid assignment,
despite all sorts of procedural objections raised by the
contractor.
In
Turner
Construction Co., the CBCA held that, where a contract
required the parties to attempt to negotiate a final, fixed
contract price after performance had reached a certain point
but the parties had failed to reach agreement, nothing
precluded the contractor from subsequently submitting a claim
for an equitable adjustment for its reasonable costs of
performance.
In Glasgow
Investigative Solutions, Inc., the ASBCA granted the
Government's motion for summary judgment that options were
properly exercised and, in doing so, rejected the contractor's
contention that FAR 52.217-8 (Option to Extend Services) can
only be used to extend the contract term after all other
options have been fully exercised and is intended only for
situations at the end of a contract when the Government needs
extra time to transition to a new contractor.
In Jaynes
Corporation, the ASBCA held that the Government's improper
interpretation of the contract led to its rejection of the
contractor's submittal of Schedule 40 pipe that complied with
ASTM A135.
In
CAE
USA, Inc., the ASBCA granted the Government partial
summary judgment on a contractor's equitable adjustment claims
that it was entitled (on a theory of unilateral mistake,
failure to disclose superior knowledge, or breach of the
implied covenant of good faith and fair dealing) to
recover fringe benefit costs it had been required to pay
under a collective bargaining agreement as the successor
contractor pursuant to the Service Contract Act.
In
The
Ducke Group LLC, dba Haven House Veterans Resource, the
CBCA denied a contractor's claim for alleged expenses not
recouped due to the Government's alleged underutilization of
contract to provide room and board for homeless veterans at a
fixed per diem rate because the contract was neither a
cost-reimbursable nor a requirements contract, and because it
did not contain a guaranteed minimum quantity.
In
IAP
World Services, Inc., the CBCA granted an appeal from the
denial of a claim for excess costs under an FFP contract
because the contractor originally had followed the
Government's directions to base its bid on certain costs
related to service calls published in the solicitation that
turned out to be inaccurate in practice.
In
Atlantic
Dry Dock Corp., the ASBCA denied a claim for the costs of
painting the allegedly unexpected vertical square footage area
on a ship because there was no proof the Government had
superior knowledge as to the actual vertical square footage
and no clear proof of a trade practice to include a
contingency of only 20% for such painting in a bid.
In
James
A. Cummings, Inc., the CBCA held that the Government's
rejection of a type of piping permitted by the contract (and
its requirement that the contractor use steel piping instead)
was a compensable change.
In
response to the Government's motion for summary judgment in The
Ravens Group, Inc., the court held that a contractor (i)
was not entitled to recover allegedly excess costs for
servicing three units not identified in the original contract
because the total number of units it serviced did not exceed
total number contemplated by contract, and (ii) could not use
the jury verdict method to calculate its alleged damages
because the contract required it to track labor hours to
determine any excess costs, which it had failed to do, and
sufficient records existed for it to reconstruct such
hours. The court left questions regarding the
Government's allegedly negligent estimates for determination
at the trial on the merits.
In
Bluebird
Communications, Inc., the ASBCA granted the Government's
motion for summary judgment and denied the contractor's claim
for allegedly unamortized capital improvement costs based on a
theory of mutual mistake because the contract had been fully
performed, and the contractor simply had not priced it
adequately to recover such costs within the performance
period.
In
600
Second Street Holdings LLC the CBCA held that the fact
that a lessor had, in the past, charged less than the maximum
amount allowed by a lease for additional parking spaces did
not preclude it from raising the charge to the maximum amount.
In Baghdad
Fallujah Co., the ASBCA dismissed an appeal for failure to
certify a claim in excess of $100,000.
In Dongbuk
R&U Engineering Co., the ASBCA dismissed another
appeal because a contract obtained through fraudulent
misrepresentations was void ab initio. Similarly, in Honeywell
International, Inc., the ASBCA held that portions of a
delivery order were illegal or invalid terms that the Board
lacked jurisdiction to enforce.
In Dragados
USA, Inc., the ASBCA disagreed with the specific contract
interpretation arguments of both parties and used the rules of
contract interpretation to arrive at the plain meaning of a
disputed specification paragraph.
In Optimum
Services, Inc., the ASBCA held that the contractor had
failed to prove the elements of a Type I Differing Site
Condition and was the party who was primarily responsible for
project delays involving submittal reviews.
In Mylene
Will Co., L.L.C., the ASBCA denied a Type I Differing Site
Condition claim because the contractor did not prove it was
damaged by the differing conditions.
In B.A.E.
Systems Technology Services, the ASBCA used principles of
contract interpretation to conclude that, although the
contract was not a "model of clarity," it
established that the repair of a generator damaged during a
fire was covered by the cost reimbursable depot
maintenance/repair CLIN rather than the fixed-price
organizational and intermediate maintenance/repair CLIN.
In
Systems
Integration & Management, Inc., the CBCA held that the
contractor was entitled to payment (plus Prompt Payment Act
interest) for invoices it submitted on various delivery orders
for completed work, with adequate supporting documentation,
which the agency had refused to pay without any adequate
justification.
In
BYA
International, LLC, the ASBCA granted the Government's
motion for summary judgment because the contractor had not
followed the contract's requirements for obtaining approval to
use a different method than specified for constructing
exterior walls.
In
Tiger
Enterprises, Inc., the ASBCA held that the Government
properly made lease payments directly to the bank/assignee
(rather than to the contractor/assignor) under a bridge
contract because the Government was merely continuing the
proper procedure it had followed under the basic contract, the
proceeds of which had been assigned to the bank.
In
Project
Solutions Group, a decision it noted was nonprecedential,
the CBCA held that excessively high relative humidity levels
encountered by a contractor at the installation site for new
flooring were not the result of a compensable, latent
differing site condition but likely were caused by fact that
the contractor repeatedly watered the area to keep down the
dust.
In
Jane
Mobley Assocs., the CBCA held that the overwhelming weight
of the evidence established that an extension to a fixed-price
contract was, itself, fixed-price (rather than T&M) so
that the actual hours worked by the contractor were irrelevant
to the amount it was entitled to bill.
Kap-Sum
Properties, LLC,
involved the unusual situation where a lessor claimed the
Government/lessee had anticipatorily repudiated its building
lease. The lessor, therefore, terminated the lease and made a
claim for breach damages associated with its attempts to
release the space. The CBCA held that the Government had not
repudiated the lease and that the lessor should have simply
made a claim for delay damages as a result of the Government's
delays in providing build-out drawings.
In
PAW
& Assocs., LLC, the ASBCA held that the Government did
not breach an ID/IQ contract by failing to award a specific
task order to the contractor during an option period because
the Government already had met its obligation to order the
minimum quantity. Denying the Government's motions to dismiss,
the Board retained jurisdiction over the contractor's claims
that the Government had breached both (i) the implied-in-fact contractual duty to provide
the contractor a fair opportunity to be considered for the issuance of a task
order and (ii) the underlying ID/IQ contract (by failing to
protect the proprietary information in the contractor's task
order proposal).
In
Reliable
Contracting Group, LLC, the CBCA denied the contractor's
claim of improper rejection because the generators it
had offered had been in storage for the previous four
years and, therefore, did not meet the contract's requirements
that they be new and available for testing at their
manufacturing facility.
In
CMEC
ARC Electric JV, LLC, the CBCA denied the contractor's
claim for extra compensation to deliver an item clearly
required by the contract specifications.
In
VSE
Corp., the CBCA held that the contractor was liable for
damage caused by Hurricane Irene to government vehicles stored
by, and in the care and possession of, the contractor.
In
Walterboro
Motor Sales Co., the CBCA denied the purchaser's claim for
the cost of repairs to a vehicle purchased at a government
auction because the vehicle had not been misdescribed in the
auction materials.
Terminations/Liquidated
Damages/Government Claims
In
American
AquaSource, Inc., the ASBCA upheld a termination for cause
of a contract to supply purified water because the
contractor's performance during the 49 day period between the
missed delivery date and the termination (conducting a site
survey, being notified by its construction contractor that it
might be liable for liquidated damages, and using minimal
efforts to find an alternate source of water) was not
sufficiently substantial to constitute reliance on the alleged
waiver of the delivery date.
In
Red
Sea Engineers & Constructors, Inc., the ASBCA upheld a
default termination because (i) the construction contractor's
delay was not excused by the Government's withholding of
progress payments and its refusal to process related documents
in a situation where the Government had expressed reasonable
concerns that, due to the contractor's lack of progress,
earlier payments had overpaid the contractor; and (ii) a
four-month forbearance period after the Government's warning
that it was reserving its rights did not waive the completion
date, especially because the contractor had continued to
submit optimistic (though inaccurate) reports of its progress
during that period.
In
Expediters
Worldwide USA, Inc., the CBCA sustained an appeal of the
default termination of an auction sales contract for a barge
because (i) the bid description omitted mention of the large
amount of water in the barge's ballast tanks, which would have
to be disposed of, and (ii) the Contracting Officer failed to
inform the buyer of an agency's availability to undertake that
disposal, which failure breached the Government's duty to
cooperate with the contractor in the performance of the
contract.
In
Payne
Enterprises, the CBCA held that declining prices for the timber,
an overall economic decline, and a precipitous drop in housing starts and housing remodeling resulting in a
steep decline in the demand for hardwood lumber did not excuse
the contractor's failure to complete a timber sales contract.
In Strand
Hunt Construction, Inc., the ASBCA held (in a 23-page
opinion by the majority) that (i) the contract completion date
was the date originally proposed by the contractor and
accepted by the Government, despite the fact that, in
bilateral modifications, both parties erroneously continued to
refer to the completion date in the solicitation until the
dispute arose; and (ii) the contractor was entitled to the
remission of liquidated damages to the extent of, the
unreasonable portion of a stop work order and the Contracting
Officer's failure (a) to act within reasonable period of time
to resolve punch list items and (b) to concede beneficial
occupancy occurred at same time as substantial completion. Two
dissents (one of which ran to 130 pages) disagreed with the
majority's position concerning the completion date.
In ADT
Construction Group, Inc., the ASBCA upheld a default
termination based on (i) the contractor's failure to meet the
original completion date and an interim construction date on a
revised schedule; (ii) the contractor's lack of progress,
indicating it was unlikely to meet any new completion date;
and (iii) the contractor's failure to provide adequate
assurances that it would or could complete the contract absent
additional financial support to which it was not entitled
under the contract. The Board rejected a plethora of excuses
offered by the contractor, including what the Board viewed as
a tardy spoliation claim.
Previously,
in Environmental
Safety Consultants, Inc., the ASBCA sustained a contractor's
appeal from a default termination because the Government
delayed 11 months beyond the stated completion date before
terminating, thus waiving the original date without
establishing a new one. The Government appealed the decision
to the Court of Appeals for the Federal Circuit, but then
agreed to a dismissal of that appeal. Most recently, the
Government returned to the Board and filed a motion for relief
from the original judgment. The Board denied
the Government's motion because it was based on a slew of
arguments that had already been rejected or were too late to
raise at this late date.
In
Gargoyles,
Inc., the ASBCA upheld the termination for cause of a
commercial items contract for light armored vehicles because,
without a valid excuse, the contractor failed to deliver
within the required delivery schedule. The Board noted that a
warning letter issued by the Government after the delivery
date had passed was actually a "show cause" notice
even through it referred to itself as a cure notice and both
parties had consistently referred to it as such.
In
Commissioning
Solutions Global, LLC, the ASBCA upheld the
termination for cause of a fixed-price contract because
the contractor refused to perform absent a price increase.
The Board) rejected the contractor's argument that a
drawing was illegible because its condition was patent
before award, and the contractor did not rely on it in
order to perform.
In
Bruce
E. Zoeller, the ASBCA granted the Government's motion
for summary judgment as to the contractor's claims of
superior knowledge and bad faith in a lease cancellation
and also rejected the contractor's claim that the Board,
itself, had been unfair to it.
In
Free&Ben,
the CBCA upheld the agency's assessment of liquidated
damages for a buyer's failure to make timely payment for
an item bought at an online auction.
In
Donaldson
Enterprises, Inc., the ASBCA upheld a government
deduction against the contractor's delivery order invoice
for the value of government property converted (taken) by
a subcontractor.
In GMS
Hawaii Corp., the ASBCA denied a claim for termination
costs because the contract permitted termination without
liability in the circumstances of this case.
In Platinum
Logistics Services Co., the ASBCA upheld a termination for
default because the contractor had repeatedly failed to
provide conforming items and, in response to a cure notice,
had failed to give the Government assurances it would comply
with contract in the future.
In
TTF,
L.L.C., the ASBCA held that a purchase order had lapsed as
a matter of law because the firm had failed to timely deliver
supplies that met the specification requirements, and the
items it did attempt to deliver were nonconforming because
they did not fulfill the requirement that they be manufactured
by a HUBZone business.
In
Selrico
Services, Inc., the CBCA held that the Government had
satisfied the requirements of 31 U.S.C. 3716(a) before
offsetting money otherwise owed to the contractor under a USMS
contract against money improperly paid to the same payee under
a separate Army contract.
In
Dace
Enterprises, LLC, the ASBCA held that the Government
properly terminated a contract for cause because the
contractor was not authorized by the manufacturer to
provide (resell) required support for specified systems
and, thus, could not fulfill terms of contract.
In
Russell
Sand & Gravel Co., over the Government's strenuous
objections, the CBCA determined that most of costs claimed
in the contractor's convenience termination settlement
proposal were recoverable.
In
Earthstar
Construction and Logistics Co., the ASBCA upheld a
termination for cause due to the contractor's failure to
deliver "new" items, as required by the
contract.
Costs, Defective
Pricing, and Cost
Accounting Standards (CAS)
In the
Lockheed
Martin Aeronautics Co. defective pricing case, the ASBCA
held that the Government had utterly failed to prove that the
alleged nondisclosure of cost or pricing data had resulted in
any increase in the negotiated price.
In Dynamics
Research Corp., the ASBCA held that a contractor which had
failed to comply with the notice requirement of the
"Limitation of Government Obligation" clause (i.e.,
that it notify the Government at least 90 days before its
incurred costs were expected to equal 85% of the then-allotted
funds) could not recover for costs in excess of the allotted
funding.
In
PHI
Applied Physical Sciences, Inc., the ASBCA held that FAR
52.232-20 (the "Limitation of Cost" clause) barred
the contractor's claim for increased costs under a CPFF
contract because the contractor failed to provide the notice
of cost overruns required by that clause, and the Contracting
Officer never issued a notice that the estimated cost of the
contract had been increased.
In
PHI
Applied Physical Sciences, Inc., the ASBCA denied a claim
for a cost overrun because the contractor failed to give the
required notice under FAR 52.232-20 (Limitation of Cost) and
the Contracting Officer did not authorize incurrence of the
costs.
In Parsons-UXB
Joint Venture, the ASBCA addressed several issues arising
under a Navy contract concerning the allowability of various
costs incurred by individual members of a joint venture in a
dispute with Hawaii over amounts owed for Hawaii's general
excise tax.
In
The
Boeing Co., the ASBCA held that the "Limitation
of Funds" clause limited the amount the prime
contractor could recover for subcontract settlement costs
after a convenience termination.
Quantum
In South
Carolina Public Service Authority, a decision limited to
quantum after a prior finding of entitlement, the ASBCA held
that the contractor was entitled to indemnification from the
Government for the full amount a jury awarded to third party
landowners for flooding damages in a separate action against
the contractor, plus CDA interest from the time the contractor
submitted its indemnification claim to the Government.
In Joe
Phillips, the ASBCA used the jury verdict method to reduce
the 79% profit rate sought by the contractor for the
Government's improper diversion of work under a requirements
contract to approximately 30%. [Subsequently, the Board denied
the Government's request for reconsideration]
In EJB
Facilities Services, the ASBCA agreed with the contractor
that the pricing of a deductive change order should be based
on the contractor's estimated costs to perform the deleted work
(which relied on the actual historical costs of performance)
rather than the contractor's original proposal, as the
Government had argued.
Discovery/Procedure
In Kurtis
Parker, an appeal from a government claim for liquidated
damages, the CBCA dismissed for failure to prosecute because
the appellant failed to respond to the Government's reasonable
request for documentation supporting the appellant's
contentions.
In
Sammy's
Delivery Service, the PSBCA denied the Government's
motion in limine to preclude the contractor from
contesting the existence or amount of a debt on a
government claim based, inter alia, on the
contractor's prior acknowledgment of the debt. The Board
noted, however, that the Government could present evidence
of the prior admissions to counter the contractor's
current contentions.
In Tri-County
Contractors, Inc., the ASBCA denied the Government's
motion for summary judgment because of material issues of fact
concerning whether the Contracting Officer should have known
that the contractor's signature on a general release in
connection with a final invoice was not intended to release
two previously-submitted claims.
In
Proteus,
Inc. , the CBCA denied the Government's motion to dismiss
the contractor's appeal for failure to prosecute because the
Board found that both parties had engaged in "a pattern of non-egregious, albeit frustrating, delay."
In Laguna
Construction Co., the ASBCA granted the Government's
motion to stay the proceedings pending related criminal
proceedings against three principal officers of the contractor
(and four officers of its subcontractor).
The CBCA
dismissed an appeal by Ryll
International, LLC for failure to prosecute after the
contractor essentially disappeared, did not answer her phone,
and failed to respond to several messages regarding a
scheduled video conference hearing.
In
Ensign-Bickford
Aerospace & Defense Co., the ASBCA denied the
Government's motion for the dispositive sanction of an adverse
inference against the contractor for discarding evidence
(tested items) primarily because the Government had not
demonstrated it was prejudiced since other evidence was still
available on the issue in question.
In Government
Technical Services, LLC, the ASBCA partially granted a pro
se appellant's motion to dismiss without prejudice
under Rule 30 due to a pending criminal matter in another
forum, but noted that the dismissal would be deemed to be with
prejudice unless either party moved to reinstate the appeal
within one year.
In Laguna
Construction Co., the ASBCA granted the Government's
motion to amend its answer to include the affirmative defense
of fraud after the contractor's vice president pleaded guilty
to soliciting and receiving kickbacks from subcontractors on a
number of contracts, including the one involved in the current
appeal.
In
Bruce
E. Zoeller , the ASBCA held that a motion for
reconsideration filed 32 minutes past the expiration of
the 30-day deadline would not be considered.
Equal Access to Justice Act
In J.
F. Taylor, Inc., the ASBCA denied the contractor's EAJA
application in a dispute over executive compensation costs because the
Government's litigation position, though it did not prevail, was substantially
justified in that (i) it was supported by legal precedent;
(ii) the method for which Government argued was the
longstanding method used in the DCAA audit manual; (iii) the
statistical evidence presented by the contractor at the
hearing was a new approach; and (iv) the Government prevailed
on some individual aspects of dispute.
In
Environmental
Safety Consultants, Inc., the ASBCA denied the
contractor's EAJA application because, although it did not
prevail, the Government's litigation position (no waiver
of delivery prior to default termination) was
substantially justified.
Court of Federal
Claims
Contract Disputes
Act (CDA) / Tucker Act / Jurisdiction / Standing
In
Estes
Express Lines, the court held it lacked Tucker
Act jurisdiction over an action brought by a motor
carrier/subcontractor that had no privity of contract with
the Government.
In
Westlands
Water District, the court dismissed claims based on
various breach-of-contract theories because they all
assumed a contractual obligation by the Government to
provide drainage to the plaintiff, which the court held
did not exist, and because many of the claims were
time-barred by the statute of limitations.
In
Red
Hawk Construction, Inc., the court dismissed a subcontractor's claim (i.e., that the
Government's Contracting Officer had fraudulently dispersed
funds in violation of the Anti-Assignment Act) because the
subcontractor had no privity of contractor with the Government
and was not (and could not have been) an assignee under the
facts of this case.
In
Kellogg
Brown & Root Services, Inc., because the contract
award fee provisions at issue were ambiguous on the issue of
whether the Contracting Officer had discretion to ignore the
contract's mathematical system for calculating the award fee,
the court denied the Government's
preliminary motion to dismiss contractor's claims that the
Contracting Officer's decision awarding no fee to the
contractor despite its high numerical scores (i) breached the
contract and (ii) was arbitrary and ambiguous, but did dismiss
the claims that the decision (i) breached the implied covenant
of good faith and fair dealing and (ii) violated FAR 16.401.
In
DaVita,
Inc., the court denied the Government's
motion to dismiss and held it had jurisdiction over a
plaintiff's (i) non-CDA claim for a declaratory judgment that
the VA had improperly failed to pay the plaintiff for
authorizations for dialysis treatments issued pursuant to 38
C.F.R. 17.36; and (ii) its CDA claim requesting an
interpretation of a 2009 contract as authorizing certain of
the treatments for which Government also failed to pay
the plaintiff. The court held that the latter claim was a
nonmonetary claim in the way the plaintiff had presented it to
the Contracting Officer and, therefore, was not subject to the
CDA's requirement that monetary claims be stated as a sum
certain.
In
Diversified
Maintenance Systems, Inc., the court dismissed a complaint for lack of jurisdiction because the
contractor failed to establish it had submitted a claim to the
Contracting Officer for a decision. The interesting thing is
that this was the contractor's second try at this suit, the first
one meeting the same fate.
In
Crewzers
Fire Crew Transport, Inc., the court held it lacked jurisdiction over a firm's claims related to
the Government's termination for cause of a BPA because a BPA
is not a contract and, under it, the plaintiff had made no
binding commitments to the Government. In a companion
case, the court reached the same result where the
Government had issued a convenience termination of another BPA
involving the same firm. In both cases, the terminations were
based on the firm's alleged "breaches" of the BPA.
In
Aeroplate
Corp., the court denied (for lack of
jurisdiction) two subcontractors' motions to intervene in a
contract case to enforce an equitable lien on funds the agency
had set aside for the project or owed to the prime
contractor/plaintiff.
In
Sperient
Corp., the court (i) held that the
plaintiff's Phase II Small Business Innovation Research (SBIR)
R&D contracts were procurement contracts covered by the
CDA and, therefore, (ii) dismissed the suit for lack of
jurisdiction because the plaintiff had not obtained a
Contracting Officer's decision on its claims.
In
Coffee
Connections, Inc., the court that CDA language
requiring, inter alia, a claim in a sum certain,
which had been improperly inserted in the Disputes clause
of a non-CDA AAFES concessions contract, was
unenforceable.
Changes/Breach/Contract
Interpretation/Defective Specs/Authority
In
Shell
Oil Co., et al., the court held
that the "Taxes" clause included in the contracts in
dispute did not contemplate indemnification claims by
contractors for later-imposed CERCLA clean-up costs after the
contracts ended.
In
Sundowner
102, LLC, the court held that the use of the phrase
"long term" in an ID/IQ contract to lease
aircraft to the Government for a base term of one year
with seven one-year options did not obligate the
Government to exercise the options.
In
1200
Sixth Street, LLC, the court dismissed the contractor's breach of contract claim
because the Government's actions did not strictly comply
with requirements of option provision, and, therefore, the
Government had not exercised the option the contractor
claimed had been breached.
In
Hernandez,
Kroone and Assocs., the court held that
(i) the actions of the parties before the dispute arose
demonstrated that the plaintiff's proposal formed a part of
the resulting contract, and, therefore, a subsequent
modification merely making that fact clear was not a change to
the contract; but (ii) the unorthodox way the contract was
negotiated had given rise to legitimate issues concerning
its scope, and, therefore, the Government's counterclaims in
fraud could not be sustained.
In
Bay
County, Florida, the court held that,
under the Christian doctrine, the Government could not
rely on the provisions of a clause it had improperly included
in a contract, but, instead, was bound by the terms of the
clause it should have included.
In
Thomas
F. Neenan, the court held that a draft
lease agreement did not amount to a binding contract because
it was not signed by the Contracting Officer and the
government employee who assured the plaintiff that "it's
a deal" did not have the authority to bind the
Government.
In
Bay
County, Florida, the court held that,
under the Christian doctrine, the Government could not
rely on the provisions of a clause it had improperly included
in a contract, but, instead, was bound by the terms of the
clause it should have included.
In
Sigma
Construction, Inc., a/k/a Sigma Services, Inc., the court dismissed the suit, holding that an oral
agreement by the Contracting Officer and the contractor to
settle a convenience termination claim was not enforceable
against the Government because (i) it was not in writing as
required by FAR Part 49, and (ii) the Contracting
Officer lacked the authority to enter into an oral contract.
In
Englewood
Terrace Limited Partnership, on remand from the CAFC,
the court reduced its original award of more than $3
million in damages for lost profits resulting from a
breach of contract to zero because it said the plaintiff
had failed to prove the amount of damages resulting from
the breach. Subsequently, in 2015, the CAFC
affirmed the CoFC's decision.
In
Chapman
Law Firm, LPA, the court held that (i) the plaintiff's
affirmative claims were forfeited under the Special Plea
in Fraud statute because the plaintiff had submitted
falsified routine inspection reports under its contract,
and (ii) the plaintiff was liable for monetary penalties
for four such falsified submissions under the Civil False
Claims Act.
In
Kenneth
Earman, the court rejected the plaintiff's claims on
various jurisdictional and contract interpretation
grounds, including the following: (i) the plaintiff
presented no evidence of its own mistake to support its
mutual mistake claim; (ii) a statute relied on by the
plaintiff had not been incorporated into the contract
(despite the Government's concession during the litigation
that it had been!); and (iii) another provision had not
been incorporated by the Christian doctrine because the
contract at issue was not a procurement contract, and the
clause in question was not a "mandatory contract
clause[] which express[es] a significant or deeply ingrained strand of public procurement
policy."
In
Jemal’s Lazriv Water, LLC
(for purposes of applying a building lease's tax adjustment
clause), the court interpreted a provision
stating that the base year taxes included "the real estate taxes for the first 12-month period of the lease term coincident
with full assessment."
Terminations
In
Ulysses,
Inc., the court held that, although the
Government was justified in canceling one purchase order
because the contractor was supplying its own part rather than
the one specified in the RFQ and the order, the Government's
cancellation of a second order was unreasonable (and should be
converted to a T for C) because neither the second RFQ nor
plaintiff's quotation specified a particular part, and
plaintiff reasonably believed that the reference in the
purchase order was just historical. (A significant factor in
the court's decision that a contract had been formed from the
second RFQ was that the plaintiff had almost finished
manufacturing the full quantity of items before the disconnect
was discovered.) The court denied the Government's
counterclaims in fraud in large part because plaintiff's
claims were based on its clearly stated disagreement with
Government's view of the legal issues involved in the dispute.
In
Zip-O-Log
Mills, Inc., d/b/a Zip-O Timber Co., the court held that a timber
sales contract was effectively terminated for convenience when
the Government ceased actions that would permit it to fulfill
its obligations, not the years-later date when the Government
finally acknowledged the obvious by sending a termination
letter.
In
Coffee
Connections, Inc., the court held that (i) CDA language
requiring, inter alia, a claim in a sum certain, which
had been improperly inserted in the Disputes clause of a
non-CDA AAFES concessions contract, was unenforceable; and
(ii) AAFES properly terminated the contract for unsanitary
conditions under a Default clause that permitted immediate
termination by either party for a breach by the other.
Costs;
Cost Accounting Standards (CAS)
In a
236-page opinion (the majority of which is devoted to tracing
the history of government procurement generally and limits on
recovery of profit in government contracts in particular from
the Constitution and the Revolutionary War through the Civil
War, WWI and WWII (and most of the wars between) and on up to
the present), the ASBCA, in Space
Gateway Support, LLC, held that former FAR 45.302.3(c)
(now revised and relocated to 15.404-4(c)(3)) prohibited the
contractor from recovering profit on the cost of equipment
purchased pursuant to directions from the Government.
In
Sikorsky
Aircraft Corp., the court denied the Government's claim
that a contractor had violated CAS 418-50 in allocating its
material overhead costs. Specifically, the court determined
that (i) because the management and supervision costs contained within the materiel overhead pool were insignificant relative to the
entire pool, CAS 418-50(e) rather than CAS 418–50(d) applied;
and (ii) because the first two allocation bases permitted by
that subsection (e) were impractical to use in this case, the
contractor had properly reverted to the third alternative
base--in the contractor's situation, direct labor--which complied
with that subsection because that allocation base varied in proportion to materiel overhead costs
during the relevant periods and, thus, was an acceptable means of measuring the resources consumed in
connection with pool activities.
In Unisys
Corp., the court held that, after making
the appropriate CAS 413 segment closing adjustments, the
contractor did not owe the Government any additional amounts
claimed by the Government.
In General
Electric Co., the court granted partial summary
judgments to each side and reserved the remaining issues for
trial in a dispute over the appropriate segment closing
adjustment under CAS 413.50(c)(12).
In
General
Motors Corp., the court (i) held that,
under original CAS 413.50(e)(12), the contractor was entitled
to include pension benefit improvements adopted in the regular
course of business just prior to a segment closing in the
contractor's segment closing adjustment calculation and, in
the process, (ii) denied the Government's contentions (a) that
such inclusion would result in an "inequitable
calculation" and (b) that an alternate segment closing
adjustment date should be used in order to exclude those
benefits.
Discovery,
Evidence, Procedure
In
Larrye
Cheaves, the court excluded an expert's report
offered by the plaintiff as evidence of trade usage of an
allegedly ambiguous contract term because the court
concluded that the contract was not ambiguous and that it
already incorporated the trade usage in question.
In
Sikorsky
Aircraft Corp., the court denied the
Government's post-decision motion to effectively dissolve a
protective order while an appeal of the case was still pending
at the Federal Circuit.
Fraud
In
Hernandez,
Kroone and Assocs., the court held that
(i) the actions of the parties before the dispute arose
demonstrated that the plaintiff's proposal formed a part of
the resulting contract, and, therefore, a subsequent
modification merely making that fact clear was not a change to
the contract; but (ii) the unorthodox way the contract was
negotiated had given rise to legitimate issues concerning
its scope, and, therefore, the Government's counterclaims in
fraud could not be sustained.
In
Gulf
Group General Enterprises Co., W.L.L., the court analyzed the propriety of three terminations
and a claim for delay and extra work in light of (i)
government counterclaims alleging violations of the False
Claims Act and (ii) (with regard to the delay claim) the
affirmative defense of the Sovereign Acts doctrine.
EAJA/Attorneys
Fees
In
SUFI
Network Services, Inc., the court held that the
contractor was entitled to recover ~$697,000 in attorneys
fees as a result of its successful suit for government
breach of a NAFI contract not covered by the CDA or FAR
because its attorneys' recorded hours and hourly rates
were reasonable.
Court of Appeals for
the Federal Circuit
Jurisdiction/Standing/Res
Judicata
In
Northrop
Grumman Computing Systems, the court reversed the
Court of Federal Claims and held that, despite
omitting information concerning third-party
financing arrangements related to Anti-Assignment Act
issues, the contractor's original claim letter gave the
Contracting Officer adequate notice of the amount and
basis of its breach of contract claim and, therefore, was
sufficient under the CDA.
In Sharp
Electronics Corp. , the court affirmed the ASBCA's prior decision dismissing an
appeal for lack of jurisdiction and held that, under FAR
8.406-6, only the GSA's Contracting Officer has the authority
to decide disputes involving, even in part, the interpretation
of FSS contract provisions and that an ordering agency
Contracting Officer lacks such authority, even when the
dispute also involves purchase order provisions.
Costs/CAS
In
General
Dynamics Corp., the court affirmed the ASBCA's prior decision that the
contractor's use of a partial-year asset valuation in computing its retirement plan forward pricing
rates was noncompliant with CAS 412.
In
Rockies
Express Pipeline LLC, the court held that, although the CBCA had correctly concluded
that the Government had breached a contract, the Board had
improperly limited the contractor's damages based on a flawed
assumption as to the Government's rights after the breach
when, in fact, the contractor was entitled to damages through
the end of the contract term.
Fraud/Anti-Kickback
In
Kellogg
Brown & Root Services, Inc., the court upheld much of the CoFC's prior decision
but held it erred in (i) failing to impute the contractor's
employees' actions to the contractor for purposes of the
Government's counterclaim under the Anti-Kickback Act and (ii)
calculating the base fee due the contractor.
EAJA
In
White
Buffalo Construction, Inc., a nonprecedential
decision, the Court of Appeals for the Federal Circuit
agreed with the CoFC that the Government's decision
shortly before trial to convert a default termination to a
termination for convenience mooted the plaintiff's claim
for attorneys' fees under the EAJA.
Supreme Court
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