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2018 Procurement Review--Contract Disputes



 

Boards of Contract Appeals (ASBCA, CBCA, PSBCA, and GAOCAB)

Jurisdiction/Standing/Timeliness/Contract Disputes Act (CDA) Issues    

There are always plenty of decisions reminding us that it is crucial to follow the regulations for filing, appealing, and prosecuting claims. In Westlake Farms, Inc., the CBCA dismissed an appeal for lack of jurisdiction because it was filed more than 90 days after the contractor's receipt of the Contracting Officer's decision. In Rover Construction Co., the ASBCA dismissed an appeal for failure to prosecute due to the contractor's unexplained failure to file a brief by scheduled date set by the Board. The ASBCA dismissed an appeal by Hill Contracting Co., because the contractor failed to respond to an order to show that it was represented by a person meeting the requirements of Board Rule 15(a). In [Redacted], ASBCA No. 60783 (Feb. 8, 2018), the ASBCA dismissed an appeal because the contractor failed to rebut the Government's contention that the issue had been released in a settlement agreement.

In Khenj Logistics Group, the ASBCA dismissed an appeal because the contractor neglected to submit its claim for more than six years after the Contracting Officer failed to honor a commitment to pay for materials. 

In Green Valley Co., the ASBCA held that the contractor's failure to submit its claim within the six year limitations period was not excused by the pendency of the Government's suit against the contractor in District Court or by the contractor's fear that the Government would respond to the claim by asserting a fraud-based defense. Subsequently, the ASBCA denied the contractor's motion for reconsideration.

In Horton Construction Co., the ASBCA held that: (i) a contractor that had been decertified by the State of Louisiana, but then reinstated retroactive to the date of decertification, had the legal capacity to maintain its appeal at Board; and (ii) even in the unlikely event that the individual that had signed the CDA claim certification (as the company's vice president and as the executrix of its deceased owner's estate) were ultimately proven to have lacked authority to do so, that would not deprive the Board of jurisdiction because it would be a curable defect in the certification.

In Anis Avasta Construction Co., the ASBCA held that, absent contemporary evidence that there was a contract or that the appellant had performed any work under it, the doctrine of laches barred  a claim for the alleged work because the contractor waited five years to submit the claim.

In Acsential Technologies, Inc., the ASBCA dismissed an appeal filed by the contractor's construction manager after the contractor failed to respond to orders from the Board to show that its representative met the requirements of Board Rule 15(a).

In ServiTodo LLC, the CBCA dismissed an appeal for failure to state a claim because the 8(a) contractor, which had entered a global settlement agreement with HHS that barred all further claims under the contracts at issue, could not bring a separate claim under the same contracts against the SBA simply because the contractor was dissatisfied with the settlement amount, the SBA having acted only as an agent to bring HHS and the contractor together under the 8(a) program.

In its latest decision in the JBG/Federal Center, L.L.C. appeal, the CBCA denied the contractor's motion for partial reconsideration of the Board's earlier decision and reaffirmed the Board's view that the Government's claim for reimbursement of excess taxes was, in these circumstances, a continuing claim not barred in its entirety by the six-year limitations period.

In Aerospace Facilities Group, Inc., the ASBCA found an appeal filed more than 90 days after a default termination decision to be timely because, even though the Contracting Officer never used the term "reconsider," the Government's emails to, and statements during teleconferences with, the contractor following the termination reasonably led contractor to believe the termination decision was not final and was being reconsidered. However, in RAKS Fire Sprinkler LLC, the CBCA dismissed (as untimely) an appeal filed 92 days after the contractor's receipt of a revised notice of termination adding an explanation of its appeal rights that had been missing from the original document.

In Eur-Pac Corp., the ASBCA dismissed (as untimely) two appeals filed two days beyond the 90-day window because the contractor's email to the Contracting Officer within the 90-day window (stating the company "is not recognizing these cancellations and is filing protest to your action. . . . This needs to be elevated to the next level in your chain of command for resolution and I expect to hear from them directly.") was not sufficient evidence of an intent to appeal to the Board.

In a decision the Board states is intended to resolve conflicting decisions from its predecessor boards, the CBCA held that Hof Construction, Inc.'s appeals from two government claims (a default termination and a consequent assessment of liquidated damages) were untimely (even though the Contracting Officer's decisions on both claims omitted significant language supposedly required by the CDA concerning the contractor's appeal rights) because the contractor had "not shown reasonable, detrimental reliance on a defect in the notice of appeal rights that could extend the appeal period by enough to make the appeal timely as to either claim."

In United Liquid Gas Co. d/b/a United Pacific Energy, the CBCA dismissed (as time barred) the Government's claims for invoice overpayments made more than six years prior to the Contracting Officer's decision asserting the Government's claims.

In Piedmont-Independence Square, LLC, the CBCA held, inter alia, that: (i) as a matter of well-established contract law, the contractor was not entitled to recover lost rent as a consequence of government delays to the completion of renovation work prior to the start of a 15-year building lease; and (ii) the contractor's appeal on the issue of the Government's offset of its costs to purchase IT equipment was untimely because it was not filed within 90 days of the Contracting Officer's decision that had clearly described the Government's claim, included a sum certain, and notified the contractor of its appeal rights, even though that decision had been issued in response to the contractor's REA.

In PRN Assocs., Inc., the ASBCA dismissed appeals as moot after the Government rescinded its decisions on its claims against the contractor.

Over a dissent, the ASBCA held in Parsons Evergreene, LLC, that FAR 22.406-1 does not create a cause of action for contractors who seek to recover the costs associated with the Government's untimely investigation of complaints related to labor standards.

In Delta Industries, Inc., the ASBCA: (i) declined to dismiss (as premature) an appeal filed 20 days after the submission of the claim to the Contracting Officer because, as of the date of the Board's decision on the Government's motion to dismiss, which was more than six months after claim was submitted, the Contracting Officer's decision still had not issued; and (ii) denied the Government's motion to dismiss, which argued that the Board lacked jurisdiction over the withdrawal of a unilateral purchase order, because the contractor's appeal alleged the existence of a bilateral contract (so it was the Government's motion that was essentially found to be premature).

In Electric Boat Corp., the ASBCA held that the prime's claim was barred by the six-year limitations period in part because: (i) the prime's and sub's claims had different accrual dates; (ii) the prime was not required to wait to file its claim at the same time as the sub; (iii) the claim accrual date is not suspended while a party performs an analysis to determine the precise amount of damages; and (iv) neither the continuing claim doctrine nor equitable tolling were available to the prime to extend the claim accrual date in this situation.

        Jurisdiction

In First Nationwide Holdings LLC, the PSBCA held that the Debt Collection Act does not give the Board the authority to order a delay in the Government's collection of offsets pending the outcome of proceedings at the Board.    

The ASBCA dismissed a claim by Tawhid Afzali Construction Co. for lack of jurisdiction because (i) the evidence indicated the contract at issue had been awarded to a different contractor altogether, and (ii) the claim did not state the amount of money the purported contractor was claiming.

In John C. Grimberg Co., the ASBCA held: (i) it had jurisdiction over a count for superior knowledge added in an amended Complaint because that new count was based on the same operative facts as the original claim; and (ii) any prejudice that might otherwise be attributed to the tardy submission of the amended Complaint on the eve of the original hearing date was mitigated by fact that the hearing had since been postponed and the Government, therefore, had time to respond to the amended Complaint, e.g., by deposing additional witnesses.

In Alcazar Trades, Inc., the CBCA dismissed an appeal for lack of jurisdiction because the DOL has exclusive jurisdiction to decide whether a new collective bargaining agreement should form the basis for a revised wage determination in a contract.

In Corbin's Trucking, Inc., the PSBCA dismissed an appeal for lack of jurisdiction because a letter terminating a contract pursuant to the Postal Service's "Termination with Notice" clause (which provides for termination by either party on 60 days’ notice without cost) is not an appealable Contracting Officer's decision (as opposed to a termination for default).

In John Shaw LLC d/b/a Shaw Building Maintenance, the ASBCA dismissed the contractor's claims for punitive damages (because the Board lacks authority to award them) and for "missed opportunities" (because these are consequential damages that are too remote and speculative to be recovered against the Government). Subsequently, the ASBCA denied the contractor's motion for leave to amend its complaint to include a count for exemplary damages. In a subsequent John Shaw LLC decision, the ASBCA: (i) dismissed a claim for unpaid invoices because the contractor previously acknowledged having received payment; (ii) dismissed a claim for missed opportunities (lost profits) on contracts other than those at issue in the appeal because such speculative, consequential damages are too remote;  (iii) dismissed a claim for exemplary (punitive) damages for lack of jurisdiction; (iv) denied the contractor's motion for reconsideration of a prior board decision denying the contractor's motion to compel discovery because, inter alia, the requested discovery concerned claims the Board had dismissed; and (v) denied the contractor's motion to reconsider portions of various precedential board cases decided 17 years in the past.

In Areyana Group of Construction Co., the ASBCA dismissed an appeal because the  contractor had had failed to certify its claim in excess of $100,000. The ASBCA dismissed appeals by  Areyana Group of Construction Co. and Sea Cycle Construction Co. for failure to certify their claims. In Mayberry Enterprises, LLC, the CBCA dismissed, for lack of jurisdiction, the contractor's uncertified monetary claims in excess of $100,000, but retained jurisdiction over individual, segregable claims that were less than that amount.

In PROTEC GmbH, the ASBCA held it had jurisdiction over appeals from Contracting Officer's decisions that were not based on the suspicion of fraud even though the contractor was under investigation for possible fraud.

In Afghan Washington Construction Co., the ASBCA dismissed an appeal filed from a fake email address by an individual who apparently was impersonating the contractor's President.

In Duke Univ., following the CAFC's precedent in Securiforce International America, the CBCA held it lacked jurisdiction over a unquantified, uncertified claim purportedly for contract interpretation, which, if granted, would entitle the contractor to costs already incurred when the claim was submitted--costs that could (and, therefore, should) have been quantified in the original claim letter.

In Devin Richardson, the CBCA dismissed an appeal not based on a CDA procurement contract for lack of jurisdiction. In Hill-Rom Co., the Board dismissed an appeal signed by the contractor's credit department supervisor, because she was not an "authorized representative" of the company.

In Precision Metals Corp., the ASBCA dismissed an appeal for lack of jurisdiction because: (i) the appeal was filed more than 90 days after the contractor's receipt of a termination notice; and (ii) the Contracting Officer had not reconsidered the termination decision.

In Cooper/Ports America, LLC, the ASBCA denied the Government's motion to dismiss for lack of jurisdiction, holding that a valid novation agreement making the appellant the successor in interest entitled it to pursue a claim that had accrued prior to execution of the novation.

In Western Trading Co., the ASBCA dismissed an appeal for lack of jurisdiction because it was not filed within 90 days of the default termination at issue (actually four years had passed).

In Michaelson, Connor & Boul, over a dissent, the CBCA held it had jurisdiction to hear an appeal based on the same operative facts as those contained in the claim presented to the Contracting Officer, even though, as stated in the heading to one section of the Board's opinion, the contractor's Complaint on appeal "Fail[ed] to Set Forth Facts Supporting the Existence of a Contract or Legal Theory for Its Claim. . . ."

In Fluor Federal Solutions, LLC, the ASBCA held it had jurisdiction over a claim for an estimated amount that included a detailed explanation of how the estimate was calculated.

In PROTEC GmbH, the ASBCA: (i) denied the Government's motion to strike the portion of the Complaint requesting the Board to remand the case to require the Contracting Officer to revisit his performance (CPAR) evaluation because that request was not considered a demand for specific performance and was within Board's jurisdiction; but (ii) granted the Government's motion to strike the portions of the Complaint specifically seeking quantum meruit recovery, because the Board lacks jurisdiction over such requests.

In Walker Development & Trading Group, Inc., the CBCA denied the Government's motion to strike the portions of the contractor's Complaint beyond its challenge to a default termination for lack of jurisdiction, finding the challenged sections were based on the same operative facts as the claims presented to the Contracting Officer: "[The contractor] describes the same course of events that it alleged in its claims, but sometimes characterizes the events differently and uses different labels to set forth its legal theories."

In NVS Technologies, Inc. appeal, the CBCA dismissed a claim for "lost profits" first raised during board proceedings on appeal because it was a new claim factually and legally distinct from references to lost opportunity costs discussed in the claim previously submitted to the Contracting Officer.

In Godwin Corp., the ASBCA held that the Government's undertaking to review additional documentation in connection with a partial termination after the 90-day appeal period had passed did not extend the deadline.

In B&F Distributors, LLC, the CBCA dismissed (as untimely) an appeal filed nearly eight years after the Contracting Officer's decision, holding essentially that a reference in the decision to an attachment (a spreadsheet) that was missing from the document did not render the decision defective so as to toll the appeal period.

In H2L1-CSC, JV, the ASBCA dismissed another appeal for lack of jurisdiction because the contractor's attempt to convert an REA into a claim simply by means of a telephone call was ineffective.

In Parwan Group Co., the ASBCA held it lacked jurisdiction over the counts in the contractor's Complaint alleging: (i) commercial impracticality (because those allegations differed materially from the allegations in the original claim to the Contracting Officer, which concerned contract interpretation involving the allegedly unanticipated costs of a change in Afghan law that required the contractor to provide security escorts for shipments); (ii) equitable estoppel (because these allegations, too, differed from those in the original claim, which alleged neither misleading conduct by the Government nor reliance thereon by the contractor); and (iii) breach of the implied duty to cooperate (because the original claim did not allege any unreasonableness by the Government in attempting to resolve the contractor's requests for reimbursement). The Board dismissed two other sections of the Complaint for failure to state a claim upon which relief could be granted: (i) allegations of entitlement to relief under the Changes clause (because there was no allegation of a written change order); and allegations of a constructive change (because there was no allegation the change was ordered by the Government--in fact, the contractor conceded the change was necessitated by Afghan law).

In Elkton UCCC, LCC, the CBCA dismissed an appeal for lack of jurisdiction because (even though the Contracting Officer had issued a "final decision" that notified the contractor of its appeal rights) the contractor's letter to the Contracting Officer was neither a monetary claim (lacking a statement of a sum certain) nor a claim for the interpretation of contract terms (containing no substantive issues for interpretation).

In Hensel Phelps Construction Co., the ASBCA: (i) held it lacked jurisdiction over a Contracting Officer's "decision" revoking prior acceptance of the contractor's work,  demanding replacement of the allegedly defective work, and threatening a set-off "currently estimated at $2,900,000" if the contractor did not complete the replacement by a stated date, because, to be a valid Government monetary claim, it would have required a sum certain; but (ii) exercised jurisdiction over the contractor's appeal from the same decision, in which the contractor sought only a declaratory judgment from the Board that the contractor had fulfilled its obligations under the contract without the need of performing the repairs the Contracting Officer had demanded.

In Coastal Environmental Group, Inc., the ASBCA held that: (i) under the applicable law of the contractor's state of incorporation, the corporation's dissolution after the date of a default termination did not deprive the contractor of its right to contest the termination; (ii) the  Government's termination for failure to make progress was reasonable because 50 days prior to the contract completion date, the contractor notified the Government it "intended" to mobilize "within the next three weeks" where it had previously provided the Government a schedule showing mobilization would require three days and then contract work would require an additional 58 days; and (iii) the contractor had waived any claims for excusable delays by the release language in a bilateral mod lifting a stop work order. In another Coastal Environmental Group, Inc., appeal involving the same default termination, the ASBCA held it lacked jurisdiction over the terminated contractor's appeal seeking to recovery monies its surety agreed to pay the Government for reprocurement charges because the terminated contractor was not party to that agreement between the surety and the Government.

In Engineering & Environment, Inc., the CBCA dismissed (for lack of jurisdiction) an appeal involving a contract with the Department of the Air Force, which should have been directed to the ASBCA.

In Starwalker PR LLC, the ASBCA granted the Government's motion to dismiss the appeal because the contractor did not prove it had submitted a claim to the Contracting Officer.

The CBCA dismissed an appeal by Development Alternatives, Inc., on behalf of ERSM (Afghanistan) Limited, d/b/a Edinburgh International for lack of jurisdiction because the purported claim certification submitted by the prime contractor in sponsoring the subcontractor's claim was so deficient it could not be corrected, having failed to make any of the four required statements correctly (and having omitted the second and fourth required statements entirely).

In Parsons Evergreene, LLC, a very lengthy opinion concerning a plethora--too many to summarize here--of quantum and entitlement issues on various claims concerning the "completion of design and construction" phase of a contract with a non-appropriated funds instrumentality (NAFI) to construct a temporary lodging facility and visitors quarters at McGuire AFB, the ASBCA held, inter alia, that: (i) the Government (improperly) failed to alert appellant to possible mistakes in its bid (which bid the Board finds reasonable); (ii) the Government failed to challenge specific elements of the contractor's claimed costs, which means its incurred costs are deemed reasonable; (iii) the contractor was not entitled to recover on its subcontractor "buyout" overrun claims because the contractor had failed to lock in its subcontract prices in a timely manner; and (iv) although the CAFC has explicitly declined to address the continued viability of the so-called "NAFI doctrine" as it applies to board appeals, the ASBCA concludes it has CDA jurisdiction over this NAFI appeal and that, therefore, the contractor is entitled to CDA interest on the amounts found owing on its claims. Subsequently the Board denied the contractor's motion for reconsideration.

In Parsons Evergreene, LLC, the ASBCA denied the Government's motion (submitted years after the original claim) to dismiss one section of the claim for lack of jurisdiction in that it allegedly lacked sufficient information to give the Contracting Officer adequate notice of the claim, because the Contracting Officer had considered the claim, had obtained a DCAA audit report on it and a technical review of it, and had issued a lengthy and detailed final decision concerning it, all of which established to the Board's satisfaction that the original claim was sufficiently detailed to give adequate notice to the Contracting Officer.

In Long Wave, Inc., the ASBCA: (i) denied the Government's motion to dismiss for lack of jurisdiction because the motion actually involved the merits of the case (e.g., whether the contract specialist had the authority to bind the Government to an alleged settlement), and it was undisputed that there was an underlying contract and that the contractor had submitted a claim; and (ii) held that the appeal was timely because it was based on the deemed denial of a later claim that differed from the original claim on which the Government was basing its allegation of untimeliness.

The CBCA dismissed an appeal by Veterans Contracting, Inc., for lack of jurisdiction because the original submission to the Contracting Officer did not state a sum certain, was not certified, and did not clearly request a Contracting Officer's decision.

In Charles F. Day & Assocs. LLC, the ASBCA held that: (i) it lacked jurisdiction over a claim on appeal that was based on different operative facts from the claim originally presented to the Contracting Officer; (ii) the contractor failed to prove that any out-of-scope work it performed actually increased its costs of performance; (iii) the contractor failed to meet the high burden of proof required to establish that it entered a bilateral modification only under duress; and (iv) contrary to the contractor's contention, that modification was supported by consideration.

In Interaction Research Institute, Inc., the ASBCA denied the Government's motion to dismiss because the appellant's contention that it was properly retained to perform training services by means of documents that subsequently were either lost or destroyed over time constituted a non-frivolous allegation of an implied-in-fact contract sufficient to sustain the Board's jurisdiction.

In Hejran Hejrat Co., the ASBCA held it lacked jurisdiction over an appeal from a Contracting Officer's decision on what the contractor labeled an REA because the contractor repeatedly had averred that its REA was not a claim. Subsequently, the CAFC reversed the Board's decision.

In Centerra Group, LLC f/k/a The Wackenhut Services, Inc., the ASBCA denied the Government's motion to dismiss the appeal because: (i) the contractor's claim for reimbursement of overtime pay to which the affected employees had already been adjudged to be entitled under a binding arbitration decision arising out of a collective bargaining agreement was not a dispute "concerning labor standards requirements" under FAR 52.222-41(t), which would be within the exclusive jurisdiction of the DOL; and (ii) even if  FAR 52.222-41(t) were to apply, the appeal was not premature because the final arbitration award did not permit or require any further action by the DOL for its enforcement.

In WIT Assocs., the ASBCA denied the Government's motion to dismiss for lack of a CDA claim certification because the originally submitted certification included at least one of the required statements, and, therefore, was correctable.

Changes/Constructive Changes/Contract Interpretation/Breach/Authority

In Austin Logistic Services Co., the ASBCA denied a claim for the alleged lease expenses of housing the contractor's employees who were performing maintenance duties at Bagram Airfield in Afghanistan because, inter alia, the purported lease document did not state the beginning and ending dates of the lease (and a subsequent document that allegedly  included the dates was not submitted in English or translated) and the contract provided that the contractor's workers could be billeted at the base.

In Buck Town Contractors & Co., the ASBCA denied the contractor's motion for partial summary judgment because the plain meaning of the contract was at variance with the contractor's proposed interpretation. The contractor had supported its argument with a dictionary definition of the disputed term, and the Board had to interpret the dictionary definition, itself, in order to evaluate the contractor's position.

In Securityhunter, Inc., the ASBCA held that paragraph (d) of FAR 52.216-22 (the "Indefinite Quantity" clause), which states in part that "the Contractor shall not be required to make deliveries under this contract after 365 days after contract award,"  did not relieve the contractor of its obligation to complete a fixed-price task order, whose original performance period was within the contract's term, simply because the contractor had not completed the work when the contract's term ended, noting: "Relieving [the contractor] of its contractual obligations to complete [the] work merely because it failed to perform on time would render the contract illusory and void [because the contractor] could simply decline to perform without any consequences." The Board also rejected the contractor's attempt to blame its performance delay on the Government because that delay claim had not previously been presented to the Contracting Officer for a decision.

In Great America Construction Co., the ASBCA held that the contractor had failed to prove that (i) it had performed one month of extra services and (ii) an authorized government representative had ordered the work (especially in light of a credible affidavit from the individual who had purportedly sent an email supporting the contractor's contentions denying she had sent the email and noting she had not even been employed by the Government at the time).

In UNIT Co., the ASBCA denied the Government's motion for summary judgment that the contractor had failed to provide timely, contractually-required notice of a discrepancy in the specifications or drawings under clause 52.236.21(a) because: (i) nothing precludes such notice from being found in an RFI; (ii) whether the RFIs at issue were sufficient to convey the notice was a disputed question of fact; and (iii) the Government had provided no evidence of prejudice from the alleged lack of notice, which is a requirement for resolving such issues.

HAL-PE Assocs. Engineering Services, Inc. won its appeal at the CBCA after the Government failed to identify any contract requirement for the extra work it had directed the contractor to perform.

In R.L. Persons Construction, Inc., the ASBCA denied the Government's motion for summary judgment that the contract lacked the positive indications of conditions at the site (which would be necessary for a finding of the Type I differing site condition alleged by the contractor) because the contract contained a latent ambiguity on this issue.

In Kellogg Brown & Root Services, Inc., the ASBCA denied the contractor's appeal of a Contracting Officer's decision denying the contractor's claim for subcontractor costs and asserting a government claim for subcontractor costs basically because the contractor had failed to implement an ACO's letter of technical direction (LOTD), which the Board determined was a type of document that the parties routinely treated as a directive that was to be followed by the contractor. Subsequently, the Board denied the contractor's motion to amend the judgment.

In Shams Walizada Construction Co., the ASBCA denied a claim for an allegedly "late payment" because the contractor failed to show it submitted a request for the original payment and because the claim was barred by a bilateral modification operating as a release and an accord and satisfaction.

In BCPeabody Construction Services, Inc., the CBCA held, inter alia, that: (i) the Government had delayed the contractor's work on a firm, fixed-price design build task order for an "unreasonably" long period (179 days) under the "Suspension of Work" clause, entitling the contractor to delay damages, including (a) general conditions and (b) some, but not all, of claimed personnel costs for its project managers, but (c) none of its claimed costs for unabsorbed home office overhead (because the suspension was for a definite period known in advance and the contractor did not prove that it incurred "standby" costs; (ii) the contractor was not entitled to recover for a Type II differing site condition (mainly because the Government was prejudiced by the contractor's failure to give timely notice of the alleged condition); (iii) the contractor was not entitled to recover for several alleged changes that actually were for items included in the fixed-price contract; (iv) the jury verdict method should be used to determine a reasonable approximation of the amount owed the contractor for another changes claim whose quantum was not susceptible of exact calculation; (v) the fixed-price nature of the contract precluded the agency from recovering for the contractor having to deliver less equipment than originally estimated in the task order; and (vi) the agency's claims for deficient work must be denied (because the agency did not prove the work it claimed was defective failed to meet the specification requirements and, even if it did not, the agency failed to provide the contractor with the opportunity to correct the work).

In Merrick Construction, LLC, the ASBCA held that the general release signed by the contractor, without any reservations or exceptions, as part of contract close-out in order to obtain final payment barred the contractor's subsequent claim, despite the contractor's attempts to raise various excuses (e.g., superior knowledge, unilateral mistake, mutual mistake) to avoid that result.

In DynCorp International LLC, the ASBCA denied the Government's motion for partial summary judgment based on alleged collateral estoppel because the issue  in a prior appeal on which the Government's motion was based (data incompleteness) differed from the issue in the current appeal (data inaccuracy). 

In JBG/Federal Center, L.L.C., the CBCA held: (i) it was appropriate to consolidate appeals involving separate contracts but the same issue; (ii) the plain language of a building lease precluded the lessor's recovery of real estate taxes on the parking garage except for the parking spaces specifically leased to the Government; and (iii) the portion of the Government's claim for repayment of excess real estate taxes reimbursed to the contractor prior to September 2010 was barred by CDA's six-year limitations period.

In PJP Building Six, LC, a decision involving contract interpretation, the CBCA held that: (i) a building lease permitted VA to terminate only at the end of its first 60 months, not at any time thereafter; and, therefore, (ii) the VA was liable for early termination of the lease after eight years of its ten year term. The Board rejected the VA's proffer of extrinsic evidence because the lease provision at issue was not ambiguous (the parties having marked-up the original lease document to essentially rule out the VA's current interpretation).

In Mare Solutions, Inc., which consolidated different appeals, each involving the interpretation of a contract for the construction of a parking garage at a VA medical center, the CBCA held, inter alia, that: (i) the testimony by the contractor's two experts as to where expansion couplings were required to be installed was persuasive; and (ii) a conflict between the specifications and drawings was resolved by the order of precedence provision stating that the specifications would take precedence and, therefore, the contractor was required to provide the head-end equipment for the video surveillance system.

The ASBCA denied an appeal by Black Tiger Co. because the Government presented credible, unrebutted evidence that no contract existed between the parties and that no equipment had been delivered by the appellant.

In Cubic Defense Applications, Inc., the ASBCA denied a motion for summary judgment because a release and settlement agreement exempted claims that arose in the future and the contractor's claim regarding its assertion of limited data rights arose after that execution of the agreement.

In Patrick M. Murray, the PSBCA held, inter alia, that the contractor (i) was not excused from further performance simply because he disagreed with a government direction to comply with one of the contract's specific requirements and (ii) did not establish that he signed a contract extension that contained the disputed requirement under duress when he was free simply to have declined to extend the contract. 

In Relyant, LLC, the ASBCA held that, although the Government was under no obligation to  change the SOW's requirements, it unreasonably delayed in responding to the contractor's repeated requests to do so, knowing that the delays in responding were causing the contractor to incur additional costs. Subsequently, the Board denied the contractor's motion for partial reconsideration.

In General Dynamics Information Technology, after determining that the contract allocated to the contractor the duty of locating the utilities at a construction site, the ASBCA held that costs of repairing a utility "strike" (damage) were the contractor's responsibility.

The ASBCA denied an appeal by Team Hall Venture, LLC, dba Limeberry Frozen Yogurt involving a claim for breach damages because the contract termination agreement signed by the contractor specifically waived all further monetary claims.

In CiyaSoft Corp., although the ASBCA held that it lacked jurisdiction over allegations not included in the claims originally submitted to the Contracting Officer and that certain other allegations must fail for lack of proof, the Board concluded that the Government had violated the terms of a commercial software license agreement that was part of the contract by (i) permitting the installation of a single copy of the software onto more than one computer, and (ii) failing to provide the contractor with a list of the registered users--all this despite the fact that the Contracting Officer had no idea what was contained in the software licenses. Subsequently, the Board denied the Government's motion for reconsideration.

In North American Landscaping, Construction, and Dredge, Co., the ASBCA, inter alia, found that, as part of a pattern of overreaching by the Contracting Officer beginning with contract inception, a release in a settlement agreement signed by the contractor was ineffective because the contractor's signature had been obtained only under duress, specifically the improper threat of a default termination and a forced bankruptcy.

In CDM Constructors, Inc., the ASBCA granted the Government's motion for summary judgment because the delay damages claimed by the contractor were not caused by the suspension of work during a bid protest.

In Pros Cleaners, the CBCA denied a claim alleging the Government had failed to order the required services under what the appellant maintained was an ID/IQ contract because: (i) although the solicitation had referred to an ID/IQ contract, the document, itself, did not include a guaranteed minimum quantity and, thus, was defective for lack of consideration; and (ii) the Government had never ordered any services from the appellant.

In TranLogistics LLC, a decision partially involving contract interpretation, the ASBCA held that: (i) the contractor's shipment delays at the border were excused because, contrary to the Government's position, the Government was responsible for providing the customs documentation and failed to timely do so; and (ii) the contractor was entitled to the remaining balance of the contract price but not to (a) claimed amounts for delays that were excusable but not compensable and (b) claimed costs of compensable delays for which it did not provide adequate proof.  Subsequently, the contractor's motion for reconsideration was granted because the time and cost of demurrage was adequately identified in its subcontractor's invoice.

In Penna Group, LLC, the CBCA denied the contractor's appeal involving a claim for extra work because the Government had made final payment in reliance on a form releasing all claims, which bore a stamp of the company President's signature, despite the fact that the President later claimed he had not authorized the employee with the stamp to use it on the release document.

In Parsons Evergreene, LLC, a very lengthy opinion concerning a plethora--too many to summarize here--of quantum and entitlement issues on various claims concerning the "completion of design and construction" phase of a contract with a non-appropriated funds instrumentality (NAFI) to construct a temporary lodging facility and visitors quarters at McGuire AFB, the ASBCA held, inter alia, that: (i) the Government (improperly) failed to alert appellant to possible mistakes in its bid (which bid the Board finds reasonable); (ii) the Government failed to challenge specific elements of the contractor's claimed costs, which means its incurred costs are deemed reasonable; (iii) the contractor was not entitled to recover on its subcontractor "buyout" overrun claims because the contractor had failed to lock in its subcontract prices in a timely manner; and (iv) although the CAFC has explicitly declined to address the continued viability of the so-called "NAFI doctrine" as it applies to board appeals, the ASBCA concludes it has CDA jurisdiction over this NAFI appeal and that, therefore, the contractor is entitled to CDA interest on the amounts found owing on its claims.

In SKE Base Services GmbH, a decision involving contract interpretation, the ASBCA held that: (i) the only reasonable interpretation of the plain language of a housing maintenance services contract's Variable Monthly Workload Calculation clause  was that it allowed for price adjustments only for changes in the number of housing units to be maintained, not for changes in the number of service calls; and (ii) the contractor's erroneous prediction of the number of service calls that would be required under the contract did not establish the elements necessary for reformation of the contract due to a mutual mistake of fact.

The CBCA denied an appeal by Adams and Assocs., Inc. because, pursuant to the terms of  its cost-plus-incentive-fee contract (specifically, the requirements of FAR 31.205-36), after the sale and leaseback of a building, the contractor was limited  to the normal costs of ownership of the building, rather than being able to recoup full rental charges as it had sought to do.

In OMNIPLEX World Services Corp., a decision involving contract interpretation, the CBCA held that a guard services contract's provisions unambiguously permitted the agency to take the deductions it had when an open post occurred (i.e., when a post was unstaffed or staffed by one who failed to meet contract requirements) and that, even if there had been an ambiguity, it was patent, placing on the contractor the duty to inquire.

The CBCA sustained an appeal by Outback Firefighting, Inc., holding that the contractor was entitled to recover its costs to repair equipment (tents) rented to the Forest Service after a severe windstorm damaged the tents before the contractor could take them down after the Forest Service had left the site because the contract provisions assigned the risk of loss to the Government until the equipment was returned to the contractor's facilities and because a windstorm could not be considered "ordinary wear and tear" or "mechanical failure" within the meaning of the relevant contract provision. 

In CDM Constructors, Inc., the ASBCA held, inter alia, that: (i) concept drawings provided by the Government for a generator were defective specifications because the Government rejected a contractor design that followed those drawings;  and (ii) requiring the contractor to use a 0.8 evaporation coefficient only if the maximum water depth was three feet or less constituted a constructive change because the contract documents did not require any particular evaporation coefficient for any particular water depth. Subsequently, the Board denied the Government's motion for reconsideration.

In Tidewater, Inc., the ASBCA held that the contractor had failed to establish the elements for a Type I differing site conditions claim because adverse weather, alone, does not constitute a basis for such claims, and there were no indications in the contract of soil conditions differing from those the contractor actually encountered.

In Ruby Emerald Construction Co., the ASBCA held that an unambiguous, bilateral modification cancelling a contract at no cost operated as an accord and satisfaction barring the contractor's subsequent claim.

The ASBCA held in John C. Grimberg Co., inter alia, that: (i) the contractor had encountered a Type I differing site condition in the form of rock quantities that greatly exceeded the indications in the contract; and (ii) the contractor was entitled to a portion of its claimed impact costs from delays associated with the differing site condition. Subsequently, the ASBCA denied the Government's motion for reconsideration.

In ECC International, LLC, the ASBCA held that the contractor was not entitled to extra compensation for the Government's closure of the Friendship Gate access route to a construction site in Afghanistan because: (i) the Government did not create an implied warranty of access through the Gate by approving the contractor's security plan; (ii) prior contracts between contractor and various agencies did not amount to a course of dealing establishing a contractual right under the current contract to use the Gate; and (iii) access through the Gate was not a contract requirement so its loss could not be a constructive change to the contract. The case boiled down to the fact that the contract and the circumstances clearly put the contractor on notice that security concerns made the performance environment unpredictable.

In L&M Technologies, Inc., the ASBCA had to resolve issues concerning the meaning of a contract provision concerning the amount the contractor was permitted to bill for indirect rates and whether a contract modification operated as a release or accord and satisfaction, and the Board used the rules of contract interpretation to decide both issues. The Board also resolved the question of which of two diametrically opposed declarations should be accepted by looking at contemporaneous documentation to determine which declaration was more consistent with it.

In First Kuwaiti Trading & Contracting, W.L.L., the CBCA parsed a sentence in a way that would thrill my high school English teachers and concluded, inter alia, that the "War Risks" clause in a fixed-price contract did not permit the contractor to recover on claims for danger pay to its employees or delays encountered by truck convoys.

In Charles F. Day & Assocs. LLC, the ASBCA held that: (i) it lacked jurisdiction over a claim on appeal that was based on different operative facts from the claim originally presented to the Contracting Officer; (ii) the contractor failed to prove that any out-of-scope work it performed actually increased its costs of performance; (iii) the contractor failed to meet the high burden of proof required to establish that it entered a bilateral modification only under duress; and (iv) contrary to the contractor's contention, that modification was supported by consideration.

In Expresser Transport Corp., the ASBCA granted the Government's motion for summary judgment and held that the contractor had waived its claim for indemnification under a time charter vessel contract by failing to submit the claim within two years of vessel redelivery in accordance with a clear contract provision entitled "Waiver of Claims" that required "all claims" to be submitted within that period of time. In light of the unambiguous contract provision, the Board rejected the contractor's requests for discovery as unnecessary and because they "do not rise above the level of a speculative hope, and amount to little more than the suggestion that something might turn up."

Terminations/Liquidated Damages/Government Claims

 The ASBCA denied a convenience termination claim by American Boys Construction Co. because the contractor failed to submit its termination settlement proposal within one year of the termination.

In J.R. Mannes Government Services Corp., the CBCA denied an appeal because the contractor failed present anywhere near enough evidence to support its allegation that the Government's bad faith motivated a termination for convenience.

The ASBCA dismissed an appeal by Abdul Khabir Construction Co. because the contractor failed to submit its termination settlement proposal within one year of its termination for convenience.

In Green Bay Logistic Services Co., the ASBCA denied a convenience termination claim because the contractor had not performed any percentage of the contract work prior to the termination, i.e., it had failed to deliver any leased vehicles that met the contract requirements.

In OCCI, Inc., the ASBCA denied an appeal from the Government's assessment of liquidated damages for late completion because the contractor failed to submit any (defensive) CDA claims asserting entitlement to time extensions, as required by the CAFC's precedent in M. Maropakis Carpentry, Inc.

In American International Contractors, Inc., the ASBCA held, inter alia, that the Government was entitled to retain liquidated damages for the portion of the work separate from additional work added by a contract modification that established a new delivery date just for that work.

In AEY, Inc., which involved consolidated appeals from multiple default terminations of CLINs in related contracts for ammunition that the ASBCA, nevertheless, determined were severable contracts, the Board sustained most of the challenges because, inter alia,:  (i) absent a cure notice, the termination of CLINs not yet due was improper; and (ii) the Government waived the original contract delivery dates in several instances by inaction in the face of notices of delays from the contractor.

In Coastal Environmental Group, Inc., the ASBCA held that: (i) under the applicable law of the contractor's state of incorporation, the corporation's dissolution after the date of a default termination did not deprive the contractor of its right to contest the termination; (ii) the  Government's termination for failure to make progress was reasonable because 50 days prior to the contract completion date, the contractor notified the Government it "intended" to mobilize "within the next three weeks" where it had previously provided the Government a schedule showing mobilization would require three days and then contract work would require an additional 58 days; and (iii) the contractor had waived any claims for excusable delays by the release language in a bilateral mod lifting a stop work order. In another Coastal Environmental Group, Inc., appeal involving the same default termination, the ASBCA held it lacked jurisdiction over the terminated contractor's appeal seeking to recovery monies its surety agreed to pay the Government for reprocurement charges because the terminated contractor was not party to that agreement between the surety and the Government.

In ECC CENTCOM Constructors, LLC , the ASBCA upheld a default termination because: (i) based on controlling CAFC precedent, the Board lacked jurisdiction to consider the contractor's various claims of excusable delays that were not previously submitted to the Contracting Officer as claims or mentioned by the contractor in response to the Government's show cause notice, even where the Government was aware of the issue; and (ii) the Contracting Officer did not abuse his discretion by failing to consider the factors in FAR 49.402-3(f) in deciding to terminate because (a) that provision does not confer a right on defaulted contractors, (b) such consideration would have required a realistic schedule from the contractor that it never provided, and (c) the Contracting Officer did consider the factors to the extent the available information allowed him to.

In Avant Assessment, LLC, a decision involving terminations for convenience, the ASBCA held that: (i) it lacked jurisdiction over theories of recovery for alleged additional work performed by the contractor because those claims were not based on the operative facts previously presented in claims to the Contracting Officer; and (ii) the contractor's claim for certain charges did not meet the requirement that they "result" from the termination under FAR 52.212-4(l).

In LKJ Crabbe Inc., the ASBCA upheld the termination for cause of a custodial services contract because, inter alia: (i) the contractor failed to provide reasonable assurances of performance in response to the Government's cure notice; (ii) the contractor's statements amounted to anticipatory repudiation of the contract, (iii) the "Order of Precedence" clause resolved a clear discrepancy in the contract documents regarding the amount of cleaning required; and (iv) the contractor failed to prove that Government knew or should have known of an alleged mistake in its bid. The Board also rejected the contractor's arguments regarding alleged (i) superior knowledge by the Government, (ii) breach of the duty of good faith and fair dealing, and (iii) unilateral mistake. Subsequently, the Board denied the contractor's motion for reconsideration.

In Ballistic Recovery Systems, Inc., the ASBCA granted the Government's motion for summary judgment and denied an appeal from a default termination because the contractor admitted on appeal that its First Article samples were nonconforming, and its earlier response to the Government's Show Cause notice was inadequate.

In First Division Design, LLC, which involved a contract terminated for convenience after the Government realized it had incorrectly accepted an offer to supply floor tiles made in China, the ASBCA denied the contractor's T for C claim, which was based largely on the alleged delay in terminating the contract and the costs allegedly incurred during extended negotiations prior to the termination, because: (i) contrary to the contractor's contention, the Government was not solely to blame for the  flawed award since the contractor had ignored the applicable trade restrictions; (ii) many alleged procedural errors by the Government in terminating the contract were irrelevant because fault is not usually an element in convenience terminations, and there was no evidence that any of the Government's actions (a) amounted to bad faith or a breach of any duty to cooperate or (b) constituted duress; and (iii) the contractor's complaints about a DCAA audit were irrelevant because the DCAA was only involved after the appeal was filed.

Costs, Defective Pricing, and Cost Accounting Standards (CAS)

In Northrop Grumman Corp., the ASBCA denied the Government's request for reconsideration of the Board's prior quantum decision because the Board rejected the Government's "novel, extraordinary, unique, and unprecedented" theory that the contractor had incurred Post-Retirement Benefit costs "by operation of law" when, in fact, the contractor had underfunded the benefit plan at issue and, thus, neither incurred the costs nor charged them to its contracts with the Government, resulting in the Government's inability to show any damages.

The ASBCA denied the parties' cross motions for reconsideration of the ASBCA's earlier (2017) decision in the appeal by Raytheon Co., which involved, inter alia, the assessment of penalties for unallowable lobbying costs and government claims involving aircraft fractional lease costs.

In Parsons Evergreene, LLC, a very lengthy opinion concerning a plethora--too many to summarize here--of quantum and entitlement issues on various claims concerning the "completion of design and construction" phase of a contract with a non-appropriated funds instrumentality (NAFI) to construct a temporary lodging facility and visitors quarters at McGuire AFB, the ASBCA held, inter alia, that: (i) the Government (improperly) failed to alert appellant to possible mistakes in its bid (which bid the Board finds reasonable); (ii) the Government failed to challenge specific elements of the contractor's claimed costs, which means its incurred costs are deemed reasonable; (iii) the contractor was not entitled to recover on its subcontractor "buyout" overrun claims because the contractor had failed to lock in its subcontract prices in a timely manner; and (iv) although the CAFC has explicitly declined to address the continued viability of the so-called "NAFI doctrine" as it applies to board appeals, the ASBCA concludes it has CDA jurisdiction over this NAFI appeal and that, therefore, the contractor is entitled to CDA interest on the amounts found owing on its claims.

In Kellogg Brown & Root Services, Inc., the ASBCA held that the prime contractor's costs of settling of REAs for delay submitted by its subcontractor were not allowable costs under the prime contractor because, inter alia: (i) they were not "reasonable," i.e., a prudent prime contractor in the conduct of a competitive business would not have incurred them since they were premised on the Government's alleged delays in assigning the subcontractor's trailers to protected convoys when the Government had made its best efforts to do so and the contract did not guarantee that the Government would do so by any specific date; and (ii) the contractor allowed subcontractor to base its REAs on rates and prices without making any effort to analyze the subcontractor's "actual" costs of the alleged delays. Subsequently, the contractor's motion for reconsideration was denied.

In Energy Matter Conversion Corp., the ASBCA held that the Government had properly imposed a penalty because the costs at issue were expressly unallowable: specifically, they were costs associated with investigations brought by the Government for a violation of the law that resulted in a disposition by compromise in proceedings that could have led to debarment. FAR 31.205-47(a)-(b).

Quantum 

In Northrop Grumman Corp., the ASBCA denied the Government's request for reconsideration of the Board's prior quantum decision because the Board rejected the Government's "novel, extraordinary, unique, and unprecedented" theory that the contractor had incurred Post-Retirement Benefit costs "by operation of law" when, in fact, the contractor had underfunded the benefit plan at issue and, thus, neither incurred the costs nor charged them to its contracts with the Government, resulting in the Government's inability to show any damages.

In Industrial Maintenance Services, Inc., a decision on quantum following an earlier decision on entitlement, the CBCA denied the following elements of a claim for costs allegedly associated with a change order that added and changed work and extended the contract schedule by five days: (i) the costs of a portable toilet (because these were not payable as a direct cost under the contract); (ii) the costs of a fork lift and fuel charges (because the contractor did not establish these costs were directly related to, or impacted by, the change order); (iii) additional charges for overhead and profit (because the contractor failed to present proof that such additional charges were incurred or warranted under the provisions of a supplement (VAAR 852.236-88) to the Changes clause included in this contract).

 In K&K Industries, Inc., the ASBCA awarded the contractor its claimed costs associated with alleged construction contract delays because the Government failed to produce contravening evidence at the hearing of the appeal, relying instead on unsubstantiated speculation:

Although the government challenges appellant's quantification of the costs allocable to the . . . work in dispute, it has failed to present substantive, persuasive evidence to rebut evidence and testimony introduced by appellant at trial. No witnesses testified on the Corps' behalf at trial and there was little, if any, cross-examination of appellant's witnesses. The Corps has provided no convincing reasons why we should not take appellant's credible and substantively unrebutted in-court evidence at face value for the most part and accord it controlling weight.  

Discovery/Procedure/Motion Practice

In First Nationwide Holdings LLC, the PSBCA held that the Debt Collection Act does not give the Board the authority to order a delay in the Government's collection of offsets pending the outcome of proceedings at the Board.

In J.R. Mannes Government Services Corp., the CBCA denied the contractor's motion to compel the deposition of a high-level agency official who had no personal knowledge of the facts involved in an appeal of allegedly improper terminations for convenience because the contractor offered no reason why the deposition was necessary beyond its desire to obtain a "birds-eye view" of the agency's actions.

In VXL Enterprises, LLC, the CBCA denied the contractor's petition to require the Contracting Officer to issue a decision on a certified claim within five business days of the date of the petition because that period of time was too short to provide the Government time to respond to, or the Board to consider, the petition, especially absent a showing of any exigent circumstance that would require action so quickly.

The CBCA denied a motion by Yates-Desbuild Joint Venture: (i) to vacate the Board's prior decision on reconsideration and (ii) to have the issue decided by the full Board.

In Transworld Systems Inc., the CBCA ordered the Government to file the Complaint on the Government's claim involving an alleged overpayment to the contractor, but the Board's reasoning wraps around the axle at least three times and lacks any clear analysis that would guide future litigants in determining when such orders will be appropriate.

The ASBCA dismissed an appeal by Bellal Aziz Construction Co. for failure to prosecute because the contractor did not respond to several orders from the Board requiring the contractor to address the question of whether it had submitted a timely claim certification to the Contracting Officer. The ASBCA dismissed an appeal by Courtney Ake for failure to prosecute after the contractor failed to respond to multiple board orders to reply to the Government's motion to dismiss for lack of jurisdiction. 

In K.O.O. Construction, Inc., which involved an appeal of a deemed denial of the claim, the CBCA permitted the contractor to designate its original, detailed claim as the Complaint and will allow the Government, if it chooses, to designate the forthcoming Contracting Officer's decision on the claim as its Answer.

In Nimrah Construction Co., the ASBCA dismissed an appeal for failure to prosecute after the contractor failed to respond to the Government's motion to compel the production of documents and to the Board's orders. Similarly, in Desert Fox Construction Co., the ASBCA dismissed the appeal for failure to prosecute after the contractor failed to respond to numerous orders from the Board.

In NVS Technologies, Inc., the CBCA denied motions (a) to have the Board amend (by way of clarification) a protective order drafted by the litigating parties (but not issued by the Board) and (b) to reprimand one of the parties for violating the protective order, because it was not an order by the Board.

The ASBCA dismissed an appeal by Bonkers Girls Co. for failure to prosecute due to the contractor's repeated failures to respond to the Board's orders.

In Woolery Timber Management Inc., the CBCA denied the Government's motion to strike the contractor's motion for summary relief as late because: (i) the contractor was not represented by an attorney; (ii) the motion was only hours late; (iii) the motion was the first late filing by the contractor; and (iv) the Government was not prejudiced by the late filing.

In Collecto, Inc, dba EOS CCA and Transworld Systems Inc., the CBCA: (i) denied (for the present) the Government's motion to consolidate two appeals by different contractors even though the contract language in dispute and many of the factual issues were identical in the two appeals, but (ii) permitted some coordination of discovery between the appeals for the sake of judicial economy.

In Rizzani de Eccher (U.S.A.), Inc., the ASBCA directed the Contracting Officer to issue a decision on the contractor's claim earlier than the projected date stated by the Contracting Officer, after finding that date represented an undue delay.

In JBG/Federal Center, L.L.C., the CBCA held that the contractor had the burden to prove the amounts it claimed were improperly withheld by the Government from property tax reimbursements, but the Government bore the burden of proof for its demand for return of alleged overpayments.

In The Boeing Co., the ASBCA denied the contractor's motion to continue to suspend (or dismiss without prejudice) 12 appeals long on the the Board's docket pending resolution of other cases in federal court because the contractor did not make the requisite showing to satisfy the requirements of Board Rule 18. Subsequently, the Board denied the contractor's motion for reconsideration.

In Trout Green Technologies, Inc., the ASBCA dismissed an appeal for failure to prosecute after the contractor repeatedly failed to comply with the Board's orders.

In DRS Global Enterprise Solutions, Inc., the ASBCA denied the contractor's motion for summary judgment seeking to dismiss the Government's claims as barred by the six-year limitations period because the contractor had failed to present adequate evidence to support its assertions concerning the dates it contended the the Government should have known of its claims.

In McAllen Hospitals, LC, dba South Texas Health System, the CBCA denied the Government's motion to exclude an evdentiary exhibit added by the contractor to the appeal file because the Government failed to identify (i) any prior discovery request in response to which the document should have been produced or (ii) any specific prejudice to the Government from its late production.

EAJA/Prompt Payment Act

In Pro-Built Construction Firm, the ASBCA denied the contractor's EAJA application because the Government's position that the contractor's claimed costs were not reasonable involved often close questions of fact and determinations as to witness credibility, and the Government had prevailed on a significant number of these issues; thus, its position was substantially justified.

In a decision that seems to me to set the bar for an EAJA recovery a bit too high, the CBCA denied the contractor's EAJA application in Belle Isle Investment Co. Limited Partnership because it found that the Government's overall litigation position regarding a disputed lease interpretation had a reasonable basis in fact and law--even though the Board, in finding in favor of the contractor on the merits of the original appeal, had ultimately decided the disputed lease provision was not even ambiguous.

In Mare Solutions, Inc., the CBCA dismissed the contractor's EAJA application (without prejudice) as premature because it had been filed before the Government's period for appealing the Board's original decision had expired.

In Richter Developments, LTD., the CBCA denied the contractor's EAJA application in an appeal that had been settled at the start of the hearing at the Board because the agency's position (requiring the contractor substantiate its initially poorly-supported costs) was substantially justified.


Court of Federal Claims

Contract Disputes Act (CDA) / Tucker Act / Jurisdiction / Standing 

In ACI SCC, JV, et al., the court dismissed a subcontractor's suit to collect an amount owed, but unpaid, by the prime as moot because the ASBCA had already dismissed the case (which involved the same allegations as the current case) with prejudice almost two years earlier and any remaining efforts to collect the judgment by the subcontractor were state court issues, the court reasoning, in part, as follows: "While [the subcontractor] has been unable to collect [on] its . . . judgment, . . . this unfortunate reality does not give [it] an unfettered right to walk into any court it pleases to make further attempts at recovering . . . . This case has been settled for almost two years and [the subcontractor] has no right to relitigate it."

In CB&I AREVA MOX Services, LLC, a contract dispute involving cross motions for relief, the court: (i) granted partial summary judgment in favor of the plaintiff/contractor on an issue of contract interpretation, finding that the contract entitled the contractor to retain provisional incentive fee payments until its construction of a Mixed Oxide Fuel Fabrication Facility for the DOE was completed; (ii) denied the Government's motion for partial dismissal ("The thrust of Defendant’s argument seems to be that Count III is styled as a breach of contract claim rather than an equitable adjustment claim, but this is a semantic distinction without a substantive difference"); (iii) rejected the Government's argument that the plaintiff had failed to comply with the 30-day notice requirement of the "Changes" clause, which the court said "might apply if any change orders existed here, but they do not";  (iv) denied the Government's six-year limitations argument because the plaintiff "could not have known of the breach – and its claim did not accrue – until it knew or should have known that the [Government] would not process a baseline change to add fee to the contract [, and the Government] did not even direct [the plaintiff] to start the rebaseline process until January 2012"; and (iv) held that the plaintiff had the immediate right to appeal an affirmative government claim included in the Contracting Officer's decision.

In Planate Management Group, LLC, the court denied the Government's motion to dismiss parts of the suit for lack of jurisdiction, holding that the factual allegations underlying the counts in the Complaint for (a) breach of the covenant of good faith and fair dealing and  (b) cardinal change had been included in the claim submitted to, and decided by, the Contracting Officer, even though those two theories of recovery had not been specifically mentioned in the original claim.

In Northrop Grumman Systems Corp., which involved numerous motions by both parties to dismiss various claims and counterclaims and for partial summary judgment on such claims, the court held, inter alia, that: (i) the contractor's claim for a cardinal change was not simply one for contract interpretation, but rather sought breach damages and, therefore, must be dismissed because the contractor failed to specify a sum certain in its claim to the Contracting Officer; (ii) the contractor's motion to dismiss count one of the Government's counterclaims as different from the claim described in the Contracting Officer's final decision should be denied because "the contracting officer’s decision and count one are based on the same underlying theory–failure to perform on time; they seek the same relief–damages for loss of the use of the machines; and they rely on the same comparison between the controlling schedule and the dates the machines were installed"; (iii) the Postal Service's counterclaim for the contractor's alleged failure to supply certain spare parts was materially different from the counterclaim described in the Contracting Officer's final decision because the count before the court was based on a materially different list of parts, quantities, and prices from those listed in the final decision; and (iv) the Postal Service's claim that the contractor repudiated its obligation to provide life cycle support must be dismissed because there was insufficient evidence for a finding of repudiation.

In Tyrone Allen d/b/a X3 Logistics, LLC, the court held: (i) it lacked CDA jurisdiction over claims based on either (a) a decision to disqualify a firm as an approved provider under the DoD's Transport Service Provider program or (b) commercial bills of lading; (ii) plaintiff's non-CDA breach of contract claims were barred by the six-year limitations period of the Tucker Act; and (iii) claims based on an alleged breach of FAR 48 C.F.R. § 9.402(b) must be dismissed because that regulation and others related to suspension and debarment are not money-mandating.

In C & L Group, LLC, and Makko Construction, LLC, the court granted the Government's motion to dismiss for lack of jurisdiction, holding that the allegations in the Complaint were not sufficient to establish either an express or an implied-in-fact contract between the plaintiffs and the Government, in part because the contracts expressly stated the United States was not a party (even though the Government had to approve, and provide financing, for them), and there was no meeting of the minds between the plaintiffs and the Government. 

Changes/Breach/Contract Interpretation/Defective Specs/Authority

In MW Builders, Inc. f/n/a MW Builders of Texas, the court denied the plaintiff's motion to reconsider that portion of the court's prior decision finding the plaintiff's subcontractor had waived its claims because the release was clear and unconditional and the court does not have jurisdiction to reform an agreement between a prime and a sub.

In Walsh Construction Co., et al., the court rejected all the contractor's claims for: (i) breach of the duty of good faith and fair dealing (because the plaintiff's reading of the specifications was unreasonable, and the Government's inspections were of a type to be expected in this contract and were not excessive);  and (ii) a Type I differing site condition involving subsurface water (because the contract did not provide an affirmative indication of the subsurface water conditions, and  the evidence established that the actual site conditions should have been foreseeable to the contractor).

In CKY, Inc., a case involving a construction contract, the court held that: (i) given all the information made available to bidders prior to award, the contractor's interpretation of the subgrade specifications was unreasonable; (ii) the Government was prejudiced by the contractor's failure to provide timely notice of its differing site conditions claim; and (iii) the Government was entitled to summary judgment on its counterclaim for liquidated damages for late completion. The court was unimpressed with the contractor's prebid efforts to understand the task at hand: "Plaintiff did not inquire about, and apparently was unprepared for, the requirements of this contract."

In Peterson Industrial Depot, Inc., et al., which involved the plaintiffs' allegations that Government had breached an alleged duty to maintain rail lines, the court held, inter alia, that: (i) the contract's general reference to the need to comply with "all applicable laws" was not sufficient to incorporate specific external regulations into the contract, and, therefore, the plaintiffs' breach-of-contract claim could not be based on those unincorporated regulations; and (ii) the plaintiffs could not rely on an alleged breach of the implied duty of good faith and fair dealing where the contract expressly disclaimed the alleged duty on which the plaintiffs' claim relied.

Terminations

In Philip Emiabata d/b/a Philema Brothers, the court upheld the Postal Service's default termination of a mail delivery contract because the contractor had failed to provide the proof of insurance and the official motor vehicle driving record required by the contract and because the contractor had provided erroneous information concerning a past reckless driving conviction on its security clearance application form.

In Vanquish Worldwide, LLC, which involved cross motions for partial summary judgment as to various claims and counterclaims related to contracts that had been terminated for default, the court held, inter alia, that: (i) the Government had not warranted the performance of the Afghan Public Protection Force and, in any event, there was no evidence the contractor had employed that entity on the  defaulted contracts; and (ii) the contractor was not liable on the Government's claim for lost cargo because the Government had failed to comply with the applicable Defense Transportation Regulation requirements establishing time limits for notifying the contractor of missing cargo items.

Costs; Cost Accounting Standards (CAS)

In United States Enrichment Corp., the court held that: (i) for purposes of calculating the segment-closing adjustment for pension costs under CAS 413, the contractor must use data from the earliest date for which it has complete data regarding the Government's contributions to the pension obligations for past and present plan participants; (ii) post-retirement health and welfare benefits (PRBs) mandated only until the expiration of a collective bargaining agreement are not vested or integral to the underlying pension plan, and, therefore are not to be included in a segment closing adjustment, except for special, continued PRBs guaranteed to certain eligible retirees by the Privatization Act; and (iii) the contractor was not entitled to additional PRB costs under FAR cost principles because the Government's obligation under these principles ended with the end of the contract.

In Bechtel National, Inc., the court held that the Government did not breach a contract for the operation of a nuclear waste treatment plant by disallowing the contractor's defense costs associated with suits by former employees of the company for sexual and racial harassment and discrimination, which were ultimately settled, even though the contract contained a specific provision that obligated the Government to reimburse the contractor for third party litigation costs, except those which "are otherwise unallowable by law or the provisions of this contract," that exception being triggered, in the court's view, by the contract's "Equal Opportunity" clause, which forbids the discrimination for which the contractor was sued.

In United Launch Services, LLC, et al., the court denied the contractor's motion for summary judgment that the Government had breached contracts for rocket launch services by failing to honor agreements to pay for certain deferred hardware production costs and deferred  support costs. The court held that (i) there were genuine issues of fact concerning whether the accounting practices the contractor had used initially in deferring the costs complied with applicable GAAP principles, and (ii) if the accounting practices were not GAAP-compliant, any subsequent agreement to pay for the deferred costs would be unenforceable.  Subsequently, the court denied the plaintiff's motion for leave to file an interlocutory appeal of one aspect of the court's prior decision, holding that the following requirements were not present in this case: "[T]o certify an interlocutory appeal of its Order, the Court must find that the Order (1) 'involves a controlling question of law,' (2) 'as to which there is substantial ground for difference of opinion,' and (3) 'that an immediate appeal may materially advance the ultimate termination of the litigation'.”

Discovery, Evidence, Procedure

In The Hanover Insurance Co., et al., the court denied the defendant's motion to strike a portion of the plaintiff's rebuttal expert's report because, even though it was untimely (disclosed late to the defendant), the late disclosure was substantially justified and harmless (the contents of the report still could be addressed by the defendant during depositions and the defendant also could file a motion to submit a surrebuttal

In DNC Parks & Resorts at Yosemite, Inc., the court denied the Government's requests for extensive discovery from a third party concerning its valuation report, which was already in the Government's possession and which would not be utilized or relied upon by the plaintiff in the current litigation.

In LW Construction of Charleston, LLC, although acknowledging that the Government had long known of the alleged issues, the Court of Federal Claims permitted the Government to amend its answer years after the original Complaint had been filed in order to add affirmative defenses and counterclaims related to plaintiff's alleged fraudulent representation of its eligibility as an SDVOSB in obtaining and performing contract. The plaintiff had argued that the proposed amendments were tardy because:

The government’s motion was filed more than six (6) years after the VA had determined [the plaintiff] was not an eligible SDVOSB; more than four (4) years after the contracting officer “reported” [the plaintiff] over concerns with its SDVOSB certification; more than three (3) years after the DOJ declined to intervene in [a] Qui Tam action [involving the same allegations]; and almost exactly three (3) years since the original Complaint in this case was filed.

In BGT Holdings, LLC, the court denied the Government's motion to dismiss several counts of the Complaint and instead granted the plaintiff's motion to amend it, basically because the court wanted to hear more of the merits instead of dismissing the case based upon some imprecise language in the original Complaint.

In United Launch Services, LLC, et al., the court  denied the plaintiff's motion for leave to file an interlocutory appeal of one aspect of the court's prior decision denying the plaintiff's motion for partial summary judgment. The court held that the following requirements were not present in this case: "[T]o certify an interlocutory appeal of its Order, the Court must find that the Order (1) 'involves a controlling question of law,' (2) 'as to which there is substantial ground for difference of opinion,' and (3) 'that an immediate appeal may materially advance the ultimate termination of the litigation'.”

EAJA

In Stromness MPO, LLC, the court denied the plaintiff's EAJA application because the "defendant's position throughout the entirety of the . . . case, although not 100 percent correct, was substantially justified."

 

Court of Appeals for the Federal Circuit

Jurisdiction/Standing/Res Judicata 

 In Securiforce International America, LLC, the CAFC: (i) affirmed the CoFC's prior decisions (a) upholding a partial termination for default and (b) denying plaintiff's motions for discovery sanctions; but (ii) vacated the portion of the lower court's decision finding jurisdiction over plaintiff's request for declaratory relief that a partial termination for convenience had breached the contract (because the proper remedy to have sought for that breach claim would have been breach damages, not the equitable relief of a declaratory judgment).

In Agility Logistics Services Co. KSC, the CAFC: (i) affirmed the ASBCA's prior decision that it lacked CDA jurisdiction over the appeals because neither the underlying contract nor the task orders at issue were made by an executive agency of the United States and no subsequent action had made the Government a party to either the contract or the task orders; and (ii) held that the CAFC has no appellate jurisdiction over the ASBCA's other determination that its Charter did not provide it with jurisdiction over the appeals.

Changes/Breach/Contract Interpretation

In Meridian Engineering Co., an appeal from two prior CoFC decisions (Meridian 1 and Meridian 2), the CAFC affirmed the CoFC's prior holdings that: (i) only the contractor's breach-of-contract and breach-of-good-faith-and-fair-dealing claims presented viable causes of action; (ii) the contractor failed to establish the necessary elements of a Type I Differing Site Conditions claim (because the subsurface conditions of which it complained were reasonably foreseeable); and (iii) the contractor's defective specification claim was essentially the same as its differing site conditions claim. The appellate court, however, reversed the CoFC's prior findings that: (i)  the contractor's flood control event claim was barred by an accord and satisfaction (because the CoFC had not considered all the evidence that might have precluded such a finding);  and (ii)  the Government was entitled to withhold payments for unsatisfactory progress under FAR 52.232-5, barring the contractor's claim for unpaid contract quantities (because (a) the cited clause only applies to progress payments, (b) there was no proof of unsatisfactory progress, and (c) there was no analysis of the parties' conflicting calculations of the appropriate amount of any set-off).

In K-Con, Inc., the CAFC affirmed a prior ASBCA decision, holding that (i) the contractor had failed to timely object prior to contracting to a patent ambiguity in the solicitation concerning whether the contracts now at issue were construction contracts; and (ii) bonds are required in construction contracts and, therefore, were incorporated in these construction contracts by operation of law under the Christian doctrine.

Discovery, Evidence, Procedure

In Avant Assessment, LLC, the CAFC affirmed the ASBCA's decision rejecting the contractor's appeal, specifically the Board's refusal to permit the contractor to admit (or utilize in its post-hearing submissions) voluminous, unauthenticated, tardily submitted documents concerning allegedly improper rejections of contract items by the Government, especially where the contractor made no effort to identify specific improper rejections.


 


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