Boards of Contract Appeals (ASBCA,
CBCA, PSBCA, and GAOCAB)
Jurisdiction/Standing/Timeliness/Contract
Disputes Act (CDA) Issues
In
Kamaludin Slyman CSC, the ASBCA overruled its prior precedent and held that "so long as a mark purporting to act as signature may be traced back to the individual making it, it counts as a signature for purposes of the CDA, whether it be signed in ink, through a digital signature application, or be a typed
name" (in this case, a typed name at the end of an email containing
only the CDA certification language and a reference to earlier-submitted "claims").
Seven members of the Board joined in the decision; five concurred
in the result (that the Government's motion to dismiss should be
denied) but reasoned, inter alia, that the situation involved
an unsigned certification that could be corrected per the CAFC's
reasoning in
DAI Global.
In
TKC Global Solutions, LLC, the CBCA
denied the Government's motion to dismiss for lack of jurisdiction because:
(i) the claim on appeal involved the same set of operative facts as
the claim
presented to the Contracting Officer; (ii) the fact that the original claim was
asserted under three names while the appeal was presented by only one of the
three did not change the situation that the claim on appeal involved
the same operative facts; (iii) the fact that the original claim stated that
payment should be made to an assignee, even if the purported assignment
may have been invalid, did not change the fact that the claim on appeal
was based on the same operative facts as the original breach
claim; and (iv) the situation did not render
the claim certification invalid or mean that the contractor had forfeited its breach claim.
In
CSI Aviation, Inc., the CBCA denied the contractor's motion for summary
judgment because its recitation of allegedly undisputed facts cited only
to the Contracting Officer's final decision, whereas the Board reviews
appeals de novo.
In another CSI Aviation, Inc. decision,
the CBCA granted a motion to consolidate appeals involving
two agencies, but denied motions to dismiss for lack of jurisdiction, to
stay, and to designate the lead agency, partially for the reasons stated in
the Board's
AVUE Technologies (which had involved two consolidated appeals,
one each against HHS and GSA) and in which the Board had denied separate motions by each of the government agencies to dismiss
one of the appeals for
lack of jurisdiction because, ultimately, the Board would have jurisdiction
over one or the other of the consolidated appeals, and the record was not
yet sufficiently developed for Board to make that determination:
We have statutory authority to proceed in one of these two appeals. The issue of which appeal is properly before us in the consolidated case has little practical significance for now and is, as a legal matter, neither so urgent that we must decide it now nor so obvious that we can decide it on the existing record.
In
Griz One Firefighting, LLC, the CBCA denied the Government's motions to dismiss
a count in the complaint for either lack of
jurisdiction or failure to state a claim because the Government conceded a contract existed and there
was
no indication in the contract that the contractor was required to submit
its claim
to a different agency than the one to which it had addressed the claim.
In
SBH Services & CORE Constr., JV II, the ASBCA denied the Government's motion to dismiss
an appeal for an allegedly defective
certification because the prime sponsoring a sub's claim had submitted
a proper CDA certification in one of a series of letters establishing
the claim.
In
Odyssey Int'l Inc., the ASBCA: (i) dismissed an
appeal of a claim for "at least" a stated amount because it failed to
state a sum certain; and (ii) held it had jurisdiction over most of
the
elements of the appeal that were based on various theories of breach of contract
because, although the breach theories were different from the theory in
the original claim, most of them were based on the same operative facts as
presented in the claim.
In
ASCT Group, Inc., the ASBCA denied the
Government's motion to "dismiss" individual statements in a Complaint
for lack of jurisdiction, holding that the Complaint as a whole referred to
a claim for
relief related to (or a breach of) an implied-in-fact contract, over which
Board had jurisdiction, and the statements to which the Government
objected were largely allegations of fact that did not constitute
separate claims.
In
High-Tech Launderette LLC, the ASBCA held it lacked
jurisdiction over an appeal because: (i) it was in the form of a request for an injunction
(a cease and desist order) to prevent the Government from following through
on a notice of intent to terminate a contract at a future date; and
(ii) the claim was
for "approximately" or "in excess of $150,000,"
which was not a sum
certain. In
Sweet Star Logistic Service , the ASBCA dismissed
an appeal for lack of
jurisdiction because the underlying claim did not include a sum certain--specifically,
no dollar amount was mentioned in the purported claim.
In
CSI Aviation, Inc., the CBCA denied a motion to intervene, as a co-respondent,
by the ordering agency (DHS) because the current
respondent, the GSA, was the real
party in interest to the dispute.
In
SRA International, Inc., the CBCA denied the contractor's motion to dismiss
the
Government's complaints (which, as specifically authorized by the
Board, were copies of the Contracting Officer's decisions on government
claims). Although the contractor alleged the Complaints were insufficiently specific,
the Board found that DCAA
audit reports attached to the decisions adequately explained the basis for,
and amount of, the claims.
In
Woodfield Financial Center, LLC, the CBCA dismissed (for failure to
state a claim upon which relief could be granted) the lessor's claim for lost rent as a result of delays caused by
alleged Government misdirection during tenant improvements.
In
CLC Construction Co., the ASBCA held, inter alia, that: (i) having
appealed the Government's default termination, the contractor was not
required to file an additional appeal of a subsequent Contracting
Officer's decision that espoused a different legal theory but that was based on the same facts the contractor had already
disputed; and (ii) the contractor's receipt of the
Government's internal cost estimate was not a violation of the
Procurement Integrity Act.
In
ITS Group Corp., the CBCA denied the Government's motion to dismiss
a painting contractor's claim for progress payments because, accepting
the allegations
in the Complaint as true for purposes of the motion, the "claim has facial plausibility"
and alleged "factual content" that, if ultimately proved, would permit
the Board to find for the contractor.
In
Spanish Solutions Language Services, the ASBCA held it
lacked jurisdiction over a firm's appeal that was actually a bid
protest of an award to another firm.
In
U.S. Overseas Housing, LLC, the CBCA held it lacked CDA jurisdiction over
an appeal involving the option-to-purchase provisions
in a build-to-lease contract because the dispute involved
the purchase of real
property. In
Rashid El Malik, the CBCA held it lacked CDA
jurisdiction over an appeal by the third party beneficiary of a government
contract. In
Sang Cash Co., the ASBCA held that: (i) a claim for unpaid
expenses on a defaulted contract was not barred by the doctrine of res
judicata because it
was different from the earlier appeal of the default termination;
but, nonetheless, (ii) the appeal must be
dismissed because the contractor did not present any evidence that it had submitted
its underlying claim to the Contracting Officer for a decision.
In
Linda Rujina Co., the ASBCA dismissed a claim because the notice of appeal to
the Board predated the
claim to the Contracting Officer. The ASBCA also held it lacked
jurisdiction over a claim for punitive damages and denied a
claim for allegedly extra carpet to be laid because the
solicitation accurately depicted the areas to be carpeted, did
not guarantee that only a specific amount of carpet would be
required, and, most importantly, offered bidders a site visit,
an opportunity of which the contractor did not avail itself.
In
Parsons Government Services, Inc., the ASBCA held that:
(i) the Government's unilateral indirect cost rate determination,
which stated it
was final, was a Government claim even though it did not include
the contractor's appeal rights because the contractor did not claim it was
prejudiced by that omission, and the contractor's appeal (which was
not filed until more
than six months after the 90-day deadline for appeal) was, therefore, untimely;
and (ii) the Board lacked jurisdiction over the contractor's claim for interpretation of
the contract's terms because, according
to the precedent established by the CAFC in the
Securiforce case, the only significant consequence of the claim would
be the contractor's entitlement to money, and the claim was not quantified.
In
Reed International, Inc., the ASBCA held that claims for reimbursement of fees imposed by Afghanistan on
private security firms were time barred because the contractor did not file
the claims until more than six years after the fines were levied (and six
years and seven days after its appeal of the fines was denied).
In
NEDA of Puerto Rico, Inc., the CBCA
dismissed an appeal because the underlying claim lacked a CDA certification.
In
Maviga N.A., Inc., the CBCA dismissed a bid protest for lack of jurisdiction.
In
Aron Security, Inc., the CBCA dismissed an appeal because the underlying claim did not request
a Contracting
Officer's final decision.
In
Delta State Univ., the CBCA dismissed an appeal for lack of CDA jurisdiction because the dispute involved a cooperative agreement rather than a procurement
contract.
In
CTA I, LLC dba CTA Builders, because
of the Government's delays, the CBCA granted the contractor's request to shorten
the time
period the Contracting Officer had given himself to decide a claim.
In
Rapid Temps, Inc., the CBCA dismissed an appeal for lack of
jurisdiction because neither the invoices
the contractor had submitted to the Government nor the
contractor's subsequent request for an explanation as to why they had been rejected
constituted a CDA claim.
In
Mahavir Overseas, the CBCA
noted that sending a notice
of appeal to the Contracting Officer does not satisfy the appeal notice requirement
at the
CBCA (even though it might for the PSBCA and ASBCA).
In
Vox Optima, LLC, the ASBCA held it lacked jurisdiction
over an appeal not preceded by a claim to the Contracting Officer.
Even if there had been a claim, there would not have been
jurisdiction because the matter was essentially a bid protest.
In
Network Documentation & Implementation, Inc., the ASBCA denied (as moot)
the Government's motion to dismiss an appeal as being the direct
claim of a subcontractor because the appellant clarified in its
opposition to the motion that its Complaint was not intended to assert
a claim by a subcontractor. The Board also held that the contractor
had pled the elements of
an implied-in-fact contract sufficiently to survive a motion to dismiss,
but noted that whether such a contract existed was still to be determined. In
Chugach Federal Solutions, Inc., the ASBCA dismissed a count in
the Complaint because: (i) the Board lacked jurisdiction
over an allegion of a breach of the duty of good faith and
fair dealing that occurred prior to contract formation;
and (ii) the allegation that the Government hindered the
evaluation and approval of the contractor's integrated
maintenance plan had not previously been presented to the
Contracting Officer for a decision.
In
Conquistador Dorado Joint Venture, the ASBCA, inter alia,
held it had jurisdiction over an appeal from a deemed
denial of a properly certified claim submitted after the Government refused
to pay an invoice.
In
Golden Build Co., the ASBCA dismissed an appeal because the contract was never performed, the total amount had been de-obligated because there was nothing for the contractor to do, and
the contractor had not submitted a claim to the Contracting Officer.
Subsequently, the ASBCA
denied the contractor's motion for reconsideration.
In
Al Haydar Group, the ASBCA dismissed an appeal
brought by the contractor's "general manager" as not meeting
the requirements
of Board rule 15(a) for representation. In
Alfajer, Ltd., the ASBCA: (i) denied the
Government's motion to dismiss counts in the Complaint that involved
the same common and operative facts as those in the claim submitted to
the Contracting Officer even though they were based on different legal
theories; but (ii) granted the Government's motion to strike the count of
the Complaint
alleging entitlement to quantum meruit recovery because the Board
lacks jurisdiction over such claims unless they involve an allegation
that the Government refused to pay due to the contract being illegal
or void.
In
Mountain Movers/Ainsworth Benning, LLC, a decision with a
complicated fact pattern involving the Government's motion
to dismiss for lack of jurisdiction due to its suspicion
that certain representations made by the contractor during
contract performance were fraudulent, the ASBCA denied the
motion because: (i) the Contracting Officer's decision
underlying the appeal was not (and could not have been)
based on a fraud that (a) the Contracting Officer contends
he was not aware of at the time he issued his decision,
(b) was not a basis for the decision, and (c) was not
related to the claim at issue in the decision; and (ii)
once the Board obtained jurisdiction over the appeal, the
Contracting Officer could not divest the Board of
jurisdiction by issuing a new decision purporting to
rescind the prior one. In
U.S. Army Tactical Supply, the CBCA denied the Government's motion to dismiss an appeal filed by the contractor's CEO
because the record was not sufficiently developed to assess the Government's contention that the CEO had failed to show that he (i) had a
legal right to receive disputed payments and, therefore, (ii) was the the real party in interest.
In
Archer Western Aviation Partners, the ASBCA held that the
contractor's statement in a Joint Status Report to the Board
(concerning previously docketed appeals) that the contractor intended to appeal
a Contracting Officer's decision constituted an effective notice of appeal, giving
the Board jurisdiction over the dispute.
In
DynCorp International, LLC, the ASBCA dismissed an appeal of CPAR evaluations as moot because
the Government had
withdrawn the CPARs, and the contractor's suspicion that any revised CPARs might
not be satisfactory was merely speculative. In
Regiment Construction Corp., the CBCA denied both: (i) the
contractor's motion to strike the Government's affirmative defense of fraud
by the contractor not raised in the initial pleadings because the contractor
had a full opportunity to respond to that defense and, therefore, was not
prejudiced; and (ii) the Government's motion for summary judgment based on
that affirmative defense because (contrary to the Government's
contentions) none of the
documents provided by the Government in support of its motion established
that there had been a previous finding of fraud.
In
Wright Brothers, the Building Co., Eagle LLC,
the ASBCA held that a CDA certification that referred to the wrong date for
the claim it referenced was correctable and did not deprive the Board of
jurisdiction over the appeal. In
Midland Language Center, the CBCA held that, although
the contractor's demand to have an allegedly inaccurate Contract Discrepancy
Report (CDR) rescinded involved a nonmonetary claim for the interpretation
of contract terms over which the Board has CDA jurisdiction, the Board
would decline, for
prudential reasons, to decide the claim because the contract had expired
during the pendency of the appeal and there was no indication yet that
the CDR would have any effect.
Subsequently, the Board
denied the contractor's request for reconsideration. In
JAAAT Technical Services, LLC, the ASBDA, inter alia, denied
the Government's motion to dismiss, holding that: (i) an earlier settlement in
a District Court case did not operate as
a judicial estoppel of the current appeal because it was not evidence that the contractor "succeeded in persuading a tribunal to accept its earlier position";
and (ii) the Severin doctrine did not bar a pass-through of
the subcontractor's claim because the prime's claim was not not solely
a
breach claim but also was based on a "Changes" clause theory. In
JAF Supply, Inc., the CBCA held it lacked jurisdiction
over an emailed appeal received by the Board 91 days after the contractor
received the Contracting Officer's decision. In
DCX-CHOL Enterprises, Inc., a case whose facts are more
complicated than its holding, the ASBCA granted the Government's
motion to dismiss because the contractor failed to timely appeal
the Contracting Officer's decisions
default terminating two contracts. In
JAF Supply, Inc., the CBCA dismissed an appeal
filed one day late. In
Miami-Dade Aviation Dept., the CBCA held: (i) it lacked jurisdiction over
the appeal of uncertified claim in excess of $100,000; and (ii)
another claim was barred by
the six-limitations limitations period because it had "accrued" when the
contractor invoiced the Government for the disputed space and Government
refused to pay the invoiced amount.
In
Anis Avasta Construction Co., the ASBCA held that the contractor's claim for payment accrued on the date
the contractor notified the
Government the contract work was completed but was not filed until
more than seven years later and, thus, was barred by the CDA's six-year limitations
period. Subsequently, the Board
denied the contractor's request for reconsideration.
In
Doubleshot, Inc., the ASBCA denied the
contractor's motion to dismiss the Government's claim for an alleged
overpayment as time-barred, holding that the contractor's lack of an accounting system
prevented the Government from ascertaining its claim amount in a sum certain.
Subsequently, the ASBCA
denied
the contractor's motion for reconsideration. In
RocJoi Medical Imaging, LLC, the CBCA held,
inter alia,
that a claim
for defective estimates is not cognizable under a contract containing the standard
"Indefinite Quantity" clause.
In
Kostas Greek Food - Zorbas, the ASBCA held that, although it lacked jurisdiction over
a request that the Board extend the performance of a terminated contract,
a letter by a pro
se litigant to the Board adequately conveyed the contractor's intent to appeal
the termination decision and, therefore, the Board had jurisdiction over that
portion of the appeal. In
Haakenson Electric Co., the ASBCA held the contractor
failed to establish that the quality control manager who
signed an email the contractor claimed was a notice of appeal (but which
apparently was intended only as a request for documents) was
authorized to file the appeal.
In
Constellation NewEnergy, Inc., the ASBCA
held that a claim incorporating an earlier change order request
(which had proposed two alternative amounts for recovery) adequately
stated a sum certain because the Contracting Officer's decision indicated
her correct understanding that one of the two alternatives had been
eliminated by intervening events and, on appeal, the contractor was
seeking to recover only the amount the Contracting Officer failed to approve from
the remaining alternative. In
MAC Electric Inc., the ASBCA held it lacked
jurisdiction over what the contractor contended was a non-monetary claim seeking a determination of the date of substantial completion for work on a task order,
but which was based on the assertion that the contractor was entitled to delay costs and,
therefore, should have been quantified in a sum certain when
originally submitted to the Contracting
Officer. In
VOX Optima, LLC, the ASBCA held it lacked jurisdiction
over an appeal seeking to recover proposal costs for the Government's alleged breach of
the fair opportunity to compete clause in an IDIQ contract because it
was
essentially a bid protest. The Board also dismissed appellant's second
ground for recovery because it did not identify any contract on
which it based its argument of breach by detrimental reliance.
Changes/Constructive Changes/Contract
Interpretation/Breach/Authority
In
Club Car, Inc., the ASBCA found for
the contractor on the pleadings because the undisputed facts established
that the contractor
delivered all items ordered within an indefinite quantity contract's
ordering period and was not required to deliver replacement batteries
ordered outside that period.
In
Alutiiq Commercial Enterprises, LLC, over a vigorous dissent by
the judge who had drafted the original opinion, the ASBCA held
that a contractor was entitled to an equitable adjustment for a
new collective bargaining agreement not finalized until after an
option exercise date because the Government had not given the
preliminary notice of the option exercise to the contractor's
employees' collective bargaining agent as required by FAR
22.1010.
In
Matcon Diamond, Inc., the ASBCA denied a
claim for Eichleay home office overhead delay damages damages because:
(i) the contractor failed to show there was
a critical path or that the Government's actions impacted it; and (ii)
the claim was
barred because it was not presented prior to final payment.
The ASBCA sustained an appeal for extra costs
by
Command Languages, Inc. d/d/a CLI Solutions because the
contractor's interpretation of a contract requirement
concerning technical manuals that was not patently ambiguous was
reasonable whereas the Government's interpretation (a) was not
reasonable, (b) conflicted with the Government's actions before the dispute
arose, and (c) was not communicated to the contractor until
after the dispute arose.
In
Future Forest, LLC, the CBCA held that statements by government employees expecting larger quantities
to be available did not create an enforceable obligation by the Government to provide
more than the minimum required quantity in an IDIQ contract.
In
Korea Engineering Consultants Corp., the ASBCA held that the
contractor was not entitled to extra
compensation for its late retrieval of leased equipment
because the delays in access to the site were caused by local protesters, not
by the Government.
In
Crowley Logistics, Inc.,
a decision involving detailed analyses of the concepts of
authority and ratification, the CBCA held that (i) although the Government official with authority only up to $25 million lacked
authority to sign a contract modification increasing an IDIQ contract's
ceiling amount by $96 million (and adding 100+ line items), (ii) the Government
had implicitly ratified
the modification, thereby entitling the contractor to enforce it according to its terms.
In
Watts Constructors, LLC, the ASBCA held that: (i) a section of a
construction contract's specifications clearly required all
electrical wiring to be run through rigid conduit, thereby
precluding the use of metal clad (MC) cable, even though that
cable, along with other types of cable not to be used
in the contract, had been mentioned in superfluous boilerplate contract
language; (ii) the failure of the Government's inspectors early in the contract to
object to the subcontractor's installation of MC cable did not alter
the meaning of the unambiguous contract requirement to use
conduit; and (iii) the inspectors' erroneous
belief that MC cabling was acceptable did not constitute a knowing waiver
of the contract requirement, especially where the Contracting Officer
never waived it. That last holding, while probably tough for contractors
to swallow, is, for that very reason, good for them to know.
In
HPI/GSA-4C, L.P., the CBCA granted the contractor's entitlement to
its claim for unpaid rent under a lease because the lessee
(the GSA) failed to give the 180-day written notice of its
intent to terminate required by the lease agreement, and a
separate eminent domain stipulation document between the
GSA and the State of California, which had been mailed to
the contractor, did not constitute the required notice of
termination (the lessor was not a party to it, and it did
not mention termination. In a
subsequent decision on the same appeal, the CBCA held that: (i) the GSA had failed to present
evidence that the condemnation settlement agreement between the lessor and
California
included compensation for any rental claimed by the lessor in the current
appeal; and (ii) the lessor was not entitled to a Prompt Payment Act recovery in
a situation
where the payment was disputed and the CDA's interest provision applied.
In
Pernix Serka Joint Venture, the CBCA rejected the contractor's theories of cardinal change, constructive
change, and constructive suspension of the work, holding that, in a firm fixed-price contract,
the contractor was not entitled to extra costs incurred as a
result of an epidemic, i.e., costs not
attributable to the Government's actions.
In
CKY, Inc., the ASBCA held that: (i) inconsistencies
between a contract note on which the contractor's interpretation relied and
other provisions of the contract (a) created a patent ambiguity concerning
a task order's period of performance about which
the contractor should have inquired before contracting and,
therefore, (b) barred its recovery on its theories
of a Differing Site Condition and mutual mistake; however, (ii) the excessive
discharge of water by two previously undisclosed culverts after heavy
rains was a Type I Differing Site Condition for which the contractor
could recover.
In
Aero Tech Service Assocs., a decision involving contract interpretation,
the ASBCA held that: (i) the contract unambiguously established that
"vendors" were encompassed by term "subcontractor"; and
(ii) the contractor's
contrary interpretation was not within the zone of reasonableness and,
therefore, did not establish an ambiguity or allow the Board to
consider extrinsic evidence.
In
AISG, Inc., the ASBCA denied the
contractor's claim for costs it incurred before beginning construction
work because: (i) the Government did not prevent the contractor from accessing
the
site, and the contractor's speculation that locals might have objected
violently to its presence was unavailing absent evidence (a) of any
such actions
or (b) that the contractor had even tried to enter the site; (ii) the contractor failed to
establish the elements required to prove a differing site condition; and
(iii) the Government was not obligated to make a change requested by
the contractor and did not prevent the contractor from performing
during an alleged period of delay.
In
East Coast Repair & Fabrication, LLC, a decision involving contract interpretation,
the ASBCA held that the contractor had not proved entitlement
because the contract did not specify
an inadequate amount of steel to be purchased by the contractor, and
the Government was not responsible for the steel shortage.
In
Valerie Lewis Janitorial, the CBCA held that: (i) where
the contract did not specify any particular method of cleaning,
the Government's direction that the contractor switch from
one-step to two-step
aseptic cleaning was a constructive change, especially where the Government's own study concluded
the two-step cleaning method increased the
contractor's time required for the work; (ii) a solicitation amendment, which
(a) revised the SOW, (b) was acknowledged by the contractor at
the time it was issued,
and (c) was referenced in the final contract document, became part of
the contract even though (a) the contractor later claimed only to have received
its cover page and (b) the final contract SOW language was not revised to reflect
the changes in the amendment; and (iii) the Government's counterclaims
must be denied because each
of them ignored agreements or understandings reached between the contractor and
the Government during performance.
In
Alderman Building Co., which involved a claim for Eichleay unabsorbed overhead for government-caused delays, the ASBCA held, inter alia, that (i) the Severin doctrine did not bar a sponsored claim by the subcontractor because there was no "iron bound" release of claims by the sub against the prime; (ii) the unabsorbed overhead claim, which was less than $50,000 when submitted to the Contracting Officer, need not be certified even if, during litigation, an amount was added for an expert's reports prepared in support of litigation; (iii) the contractor reasonably kept its workers on standby during the delay period due to (a) the threat of liquidated damages in the absence of a time extension by the Government and (b) the risk of the unavailability of qualified workers to rehire when the delay period ended; (iv) the contractor was unable to obtain sufficient replacement work during the period of delays to overcome the disruptive effects of those delays; and (v) there was no basis in law to award the contractor "direct costs of standby" in addition to its Eichleay recovery.
In
Supreme Foodservice, GmbH, a decision involving complicated
questions of which party was the claimant and which bore the
burden of proof, the ASBCA held, inter alia, that: (i)
the contractor had the burden of producing evidence to the Board in
support of the costs claimed by the contractor in its REA, even though the appeal
involved a Contracting Officer's decision demanding repayment of
alleged overpayments; (ii) the Government could not assert both a government claim and
affirmative defenses as to the same issue because that would amount
to a "heads we win, tails you lose" situation; (iii) as to
the contractor's
claim for CDA interest, the Government did not waive its first material breach
defense by continuing with the contract work for years after first
learning of the contractor's fraud because the contractor was on notice that
the Government was reserving its rights, and proceeding with the contract
work was the only commercially practicable choice for the Government;
and (iv) the Government's allegation that the contract was void ab initio
must be rejected because, inter alia, if the contract were void, the Board would
not have jurisdiction over the Government's contract claims. Subsequently,
the contractor's motion for reconsideration was
denied.
In
Horton Constr. Co., the ASBCA examined the history of the contract
and concluded that the individual that had signed a final release of claims on behalf of
the contractor had the actual (and apparent) authority
to do so.
In
GSC Constr., Inc., for various reasons,
including accord and satisfaction, the ASBCA granted most parts of the Government's
request for summary judgment as to various changes and delay claims by
a design and construction contractor.
In
Professional Management Consulting Services, LLC, which involved
issues of contract formation and interpretation in a situation
where several terms of the ordering agency's purchase order
under a GSA Schedule contract differed from the contractor's
offer, the ASBCA held, inter alia, that: (i) it had jurisdiction over an appeal involving
a claim that had been submitted to
the ordering agency's Contracting Officer rather than the GSA Schedule
Contracting Officer because the purchase order, not the Schedule, formed
the basis of the agreement between the parties; and (ii) under the contract
interpretation principle giving specific provisions precedence over conflicting general provisions,
the purchase order was a fixed-price order that
did not give the Government the right to unilaterally reduce the price for
a nonconforming item it had accepted.
In
Hamstra Chico LLC,
the CBCA denied the
contractor's request to reform a fixed-price contract based on the allegation
that, during precontract negotiations, the agency had improperly failed to notify
the contractor that its proposed
price for electricity was a deficiency, because the agency was not
aware of any error in the proposed price prior to award and the solicitation requirement underlying the price was clear. In
3 Daughters Painting Co., LLC, the CBCA held that the buyer of a used vehicle at a GSA auction had waived its right to claim the vehicle was misdescribed by bidding without having inspected it, even though
the buyer had been provided only a very limited window within which to inspect. In
ECC International, LLC, the ASBCA denied a claim despite all the
contractor's arguments because, basically, the method of
construction adopted by the contractor's sub, which differed from the contract
standards, was not communicated to the Government prior to its
implementation, as was required by
the task order. In APTIM
Federal Services, LLC, which involved a CPFF contract, the ASBCA
held that: (i) under the Fixed Fee clause (FAR 52.216-8), which provides,
inter alia, that "[t]he Government shall pay the contractor for performing this contract the fixed fee specified in the Schedule,"
the contractor was not entitled to obtain fee in excess
of the amount specifically obligated for fee by a contract modification;
and (ii) the same contract modification authorized only a particular scope of work,
so the
contractor was not authorized to perform beyond that scope or to
obtain reimbursement for costs in excess of the amount obligated by
the
modification. In
Collecto, Inc. dba EOS CCA, the CBCA denied multiple grounds in cross motions for summary judgment, most on the basis of
unresolved factual disputes, but also held there was no implied-in-fact contract
because
there was an express contract covering the same subject. In
Aspen Consulting, LLC, the ASBCA held that the Government
did not breach a contract by directing payments to a bank account
identified by a company representative who had the apparent authority to do
so. In Mark VII
Enterprises, Inc., the PSBCA held that in a firm,
fixed-price contract, the contractor was responsible for its subcontractor's
costs of a CCTV systems because the contractor failed to inquire concerning a patently
ambiguous specification prior to bidding. In
Carlos Valdes and Dulce Valdes, the PSBCA held that the Postal Service
was entitled to recover its costs of repairing hurricane damage to
a leased building after the lessors failed to promptly repair it
when requested to do so by the Postal Service. Subsequently, the
Board granted in part and denied in part the contractor's
motion for
reconsideration In
Alistiqama Co., the ASBCA denied a claim because (although the
Government clearly had failed to return leased equipment in a timely manner)
the
contractor had signed a general release. In
Trade West Construction, Inc., the ASBCA held, inter alia,
that the Government had waived its objection to the contractor's alleged failure to
provide the 20-day notice of a change required by the "Changes" clause by
failing to raise the objection in the Contracting Officer's decision or as an affirmative defense after the
appeal. In
MPG West, LLC, an unsuccessful appeal, the ASBCA held that: (i)
the contractor had failed to prove that the Government's quantity estimates in
a requirements contract were negligently prepared; (ii) IG reports, while
admissible as evidence, did not establish that the Government had breached the
contract; (iii) the terms of this particular contract permitted the Government to
order from sources other than the contractor so long as the contractor
remained the "primary" source; (iv) in this context, the Government's weekly
pricing review of the contractor's catalog pricing and the
Government's approval of the vast
majority of the catalog items coupled with its stated reasons (which had a
rational basis) for questioning a few of the item prices as unreasonable did not breach the contract
(the primary source of the
contractor's problems being its failure to implement a local sourcing
plan and its underestimation of the difficulty of the contract work);
and (v) none of the above actions constituted a constructive
change. Subsequently, the contractor's motion for
reconsideration was
denied. In Granite Construction Co.,
the ASBCA held that days of
anticipated severe weather during a suspension of work pursuant to FAR
52.242-14 do not reduce any compensation that may be owed to the
contractor under that provision.
In
KF&S Corp., the ASBCA denied a claim
seeking to recover for an increase in South Korea's minimum wage
occurring during performance of a contract for security guard services
in that country because the contract did not contain any provisions
authorizing price adjustments due to labor changes and no such clauses
were mandatory for inclusion in the contract. In
Harry Pepper and Assocs., Inc., the ASBCA held, inter alia,
that language in a modification limiting a release to a
particular change ("the above change") did not operate as an accord and satisfaction of
any other
claims. In
immixTechnology, Inc., on behalf of Software AG Government Solutions,
Inc., which involved a partially
successful claim, the CBCA held that the contractor (on behalf of the
subcontractor who developed the software) was entitled to compensation for
over-deployment of certain software by the Government beyond what was contemplated
by the software license in the contract. In
The Boeing Co., the CBCA denied the
contractor's motion for summary judgment that it was entitled to
indemnification for the costs of defending two lawsuits alleging that the plaintiffs had suffered from illnesses caused by the release of radioactive materials from a facility owned by
the contractor in which it had performed various government contracts,
where both suits had been resolved without any finding or admission of public liability,
because the record did not establish the occurrence of a "nuclear incident" as an undisputed fact, and the Board did not find that DEAR 952.250-70 provides for indemnification
based only on an allegation of "public liability. In
Philips Lighting North American Corp., the ASBCA, inter alia,
held that: (i) the Government had breached the contract by failing to pay
the contractor's invoices for installment payments; and (ii) the
Board lacked jurisdiction over the Government's
claim for liquidated damages because the Contracting Officer had not
issued a decision on that claim. Subsequently, the Government's request for
reconsideration was
denied.
Terminations/Liquidated
Damages/Government Claims
In
Puma Energy Honduras, S.A. de C.V., the ASBCA upheld a default termination
for failure to deliver because the late payment of government invoices
triggered the contractor's internal dispatch system
to automatically block further deliveries (but did not render the
contractor financially incapable of performing).
In
NVS Technologies, Inc., interpreting the "Limitation of Funds" clause of an incrementally funded
contract, the CBCA held that: (i) the contract expired once funds were discontinued and
the contractor
had received all the allotted funds, and the Contracting Officer's subsequent
Termination for Convenience was specifically permitted by the clause;
and (ii) the contractor failed to meet the high standard of proof required to support
its allegations of bad faith in the decisions to discontinue funding and
terminate the contract.
In
Axxon International, LLC, the ASBCA upheld a
termination for default because: (i) the contractor failed to deliver
by the extended delivery date established in a show cause notice and
failed to
make accelerated payments to its small business subcontractor as required by
FAR 52.232-40 after having received such payments from the Government;
and (ii) the default was not excused by
the Government's refusal to comply with the contractor's
instructions to direct
payments to the subcontractor because the contractor had not complied with
the requirements of FAR 32.802 to effectuate an assignment.
In
DCX-CHOL Enterprises, Inc., the ASBCA denied the
Government's motion for summary judgment upholding default terminations
because there were disputed issues of material fact concerning the
contractor's allegations that its late deliveries were excused by
defective specifications.
In
Catherine Kurkjian, the ASBCA held that: (i) the Government's
decision that the base year's contract work was substantially complete
coupled with the Government's (still standing) offer to pay the small remaining amount that would have been owing
had the contractor completed the base year's worth of contract hours did not amount
to a termination and, even if it had, the amount
the contractor had been paid plus the amount the Government had offered to pay
would have been the maximum recovery available; and (ii) the decision not to
exercise the option was motivated by concerns with the contractor's troubling
and erratic personal behavior, not whistleblower retaliation, and,
therefore, did not amount to bad faith.
In
Mayberry Enterprises, LLC, the CBCA held that an assignment of the contract funds by
a contractor to
a surety (which the Government
elected to recognize) was enforceable, and, therefore, the surety had a right to receive,
and to determine the appropriate distribution of, the contract funds following
a default termination of the contractor.
In Odyssey Int'l, Inc.,
the ASBCA began the "Decision" section of its opinion by
granting the Government's motion for summary judgment that a default
termination of a construction contract was justified by the contractor's
unexcused inability to obtain the required
bonds, but then the Board spent the remainder of its opinion seemingly
arguing against its own conclusion.
In
Ken Laster Co., the ASBCA held that the contractor failed to prove Government interfered with its work or
required it to perform excessive inspections and, thus, rejected its
claims that excusable delays entitled it to relief from an
assessment of liquidated damages.
In
Aerospace Facilities Group, Inc., the ASBCA upheld a default termination because
the contractor did not provide the contract items on time due to its failure to pay
its subcontractor for
the items (which it could have done with its own corporate funds but chose not to)
and did not offer a valid excuse for its failure to deliver.
In
Carmazzi Global Solutions, Inc., the CBCA upheld three terminations for cause because the contractor failed (i) to respond to
the Government's motion for summary judgment or (ii) to identify any disputed material facts.
In
U.S. Coating Specialties & Supplies, LLC, the ASBCA upheld a default termination,
concluding that: (i) the contractor failed to prove the
existence of an implied-in-fact oral agreement to terminate the contract for convenience
because there was no evidence of mutual intent and insufficient evidence
of an
offer and acceptance; (ii) the rejection of the contract in bankruptcy and
the contractor's
failure to make progress on critical path items established prima
facie grounds for the default termination; (iii) the fact that a major
subcontractor walked off the job because the prime failed to pay it did not
excuse the prime's default; (iv) the Contracting Officer's reluctance to meet with
the prime absent assurances from the bonding company that it approved of
a contract assignment to a replacement subcontractor was reasonable and
did not excuse the default; and (v) the contractor failed to offer specific evidence
to overcome the presumption that the Government's officials acted in good faith
in terminating the contract.
Previously, in
Exceed Resources, Inc., the ASBCA held that a bilateral
modification terminating a contract and limiting the contractor's
recovery to phase-in costs barred the contractor's subsequent claim
for breach damages. Now, the contractor's motion for reconsideration
has been
denied.
In
GSC Construction, Inc., an unsuccessful appeal of the default
termination of a construction contract, the ASBCA held,
inter alia, that: (i) the Government did not waive the contract's due date by
forbearing from default terminating until the contractor missed a later
completion date it had promised in response to a show cause notice where
the Government had expressly
disclaimed that it actions constituted a waiver; (ii) even if there had been a waiver,
the termination
was justified when the contractor failed to perform by the extended
completion
date it had promised to meet; and (iii) contemporaneous evidence established
overwhelmingly that contractor (justifiably) blamed its subcontractors
for the delays that resulted in the termination and undermined the
credibility of contrary positions the contractor (and its expert
witnesses) subsequently took on
appeal.
In
Eagle Peak Rock & Paving, Inc., the CBCA overturned a default termination because
the Contracting Officer had failed to consider some of the factors at FAR 49.402-3(f) in
making the termination decision. Specifically: With two full seasons remaining on the contract, the contracting officer here failed to consider “the urgency of the need for the . . . services [described in the contract] and the period of time” that another contractor would have required to complete the remaining work on the contract compared with the date by which
[the contractor] could have completed
performance under the contract.
In
John's Tile and Carpet Service, the ASBCA upheld the termination for cause of
a contract for the installation of carpet
tiles in a building on a military base because photographic evidence showed
the work was defective and
the contractor failed to provide any evidence excusing the failure to
perform. Being fussed at is not a valid excuse for nonperformance:
[The contractor] states that when all of the items that [the
Government's point of contact] wanted reworked were completed, she was asked to and did perform an inspection. Upon completion of that inspection,
[the contractor] relates that she yelled at him in front of several people, stated that he would get no money for the work because she was not satisfied. Thereafter, according to
[the contractor], she ordered him to leave the base or else she
would have him removed by the military police.
In
Molly Jessie Co., the ASBCA upheld a default termination
based on the contractor's failure to submit documentation (e.g.,
an Accident Prevention Plan) required by the SOW and rejected
the contractor's unsupported contention that the disputed
requirements were only appropriate for larger contracts. In
another appeal involving
the same contractor, the Board upheld a default termination
for failure to make progress after the contractor, citing wet
conditions that made the work more difficult, refused to
complete the contract work absent additional funding from the
Government:
Mostly appellant's Rule 11 brief talks about how difficult it was to work on the site and that to perform the work it had agreed to perform and at a price it had agreed to for such work was not possible. The record is clear that the site had days when the ground was wet. But it was not always wet.
. . . Appellant performed no work subsequent to May 22, 2019, and frankly we are not convinced on this evidence that it could not work on many of those days prior to termination, it was just too costly to perform and that is not the fault of the government.
Costs / CAS
In
Northrop Grumman Corp., the ASBCA (over numerous objections by the
Government) held that, for purposes of determining its overhead
rates, the contractor had reasonably calculated the assets and obligations of its
pension plan for senior management at the time it froze the plan.
In
DynCorp International LLC, the ASBCA upheld the disallowance of
severance payments made to the company's former CEO because they
exceeded the cap on executive compensation in FAR 31.205-6(p).
The Board concluded: "Bottom line: unallowable salary cost used in a severance pay calculation results in unallowable severance costs – unallowable in, unallowable out."
In
Mission Support Alliance, LLC, the CBCA held that none of provisions in
a CPFF contract
relied on by the agency required
the contractor to provide the agency with its parent
organizations' cost records under Parent Office Support Plans recognized
by the contract and already approved each year by the agency, so the
Board denied the agency's attempt to retroactively disallow
such costs.
Quantum
In
Starwalker PR LLC, the ASBCA held that: (i) it had jurisdiction
because the Government had (in a bilateral modification) recognized
the assignment of the contract
to the appellant, thereby waiving any technical noncompliance with
the requirements of anti-assignment statutes; but (ii) the appeal
(which was not
explicitly bifurcated into entitlement and quantum phases) must be
denied because
the contractor had failed to present any evidence of quantum. A
concurring opinion disagreed with the hearing judge's reasoning
on quantum but concluded the appeal should be denied on the
merits.
In
CDM Constructors Inc., the ASBCA
held that the contractor failed to establish the baseline from which to calculate its
excess costs and, therefore, failed to prove the quantum of its claim. Subsequently, the Board
denied the contractor's motion for reconsideration.
Discovery/Procedure/Motion
Practice
In
Williams Building
Co., the CBCA: (i) granted the contractor's motion to amend
its Complaint for Eichleay standby costs (even though
both the original Complaint and the amendment were inartfully
worded); but (ii) considering the Government's objections
to a stay, denied the contractor's motion to stay proceedings
pending negotiation of a settlement proposal involving standby
costs.
In
NVS Technologies, Inc., the CBCA disqualified an individual from further representing (or
assisting) the contractor in its appeals because he did not comply with
an order
from his state bar association to give prompt notice to the tribunal that
his license to practice law had been suspended.
In
S & DF Properties, LLC, the CBCA denied the contractor's motion to compel ADR because Government objected
to engaging in it.
In
Gilbane-Grunley Joint Venture, the CBCA granted the parties' joint motion to consolidate four appeals because
they: (i) involved the same contractor, agency, and contract, and
similar questions of fact or law, (ii) were at the same stage of litigation,
and (iii) would likely involve similar discovery.
In
Regiment Construction Corp., the CBCA denied both: (i) the
contractor's motion to strike the Government's affirmative defense of fraud
by the contractor not raised in the initial pleadings because the contractor
had a full opportunity to respond to that defense and, therefore, was not
prejudiced; and (ii) the Government's motion for summary judgment based on
that affirmative defense because (contrary to the Government's
contentions) none of the
documents provided by the Government in support of its motion established
that there had been a previous finding of fraud.
In
4K Global-ACC Joint Venture, LLC, the CBCA ordered the Government to provide more detailed
descriptions of the entries in its log of allegedly privileged documents
in response to the contractor's discovery requests.
The ASBCA
denied cross motions for summary judgment in
Advanced Technologies Group, Inc. because factual issues
remained concerning when the Government's claim accrued and whether disputed
costs were expressly unallowable.
The ASBCA
dismissed an appeal by
Phoenix Hawk Constr. Co. for failure to prosecute after the contractor failed to
respond to several board orders.
In Asahi General Trading & Cont. Co. W.L.L., the ASBCA denied the Government's motion to
disqualify the contractor's counsel of record because the Government had not
met its heavy burden to show (a) the agency's former General Counsel possessed
government information gained in his former employment that would necessarily be used or disclosed in the appeal and
(b) disqualification was absolutely necessary.
EAJA/Prompt Payment Act
In
VET4U LLC, the CBCA partially
granted an EAJA application, holding that, despite the fact that the contractor prevailed on only
four of 23 claims on appeal, the Government's litigation position was not
substantially justified because of its actions during contract performance:
To be sure, [the contractor] brought claims that were inconsistent with the plain language of the contract.
. . . On the other hand, the VA’s failure to recognize its own hand in increasing the costs of performance prevented the parties from resolving disputes in a more cost efficient manner. Here, the record brims with evidence of such conduct.
. .
In
Buck Town Contractors & Co., the ASBCA denied the contractor's EAJA application,
holding that the Government's
litigation position was substantially justified because it had a reasonable basis in fact and law, relying on the typical argument that the
Government’s failure to object to a contractor’s actions does not constitute waiver,
even though that position did not prevail in the unique facts of
this case.
Court of Federal
Claims
Contract Disputes
Act (CDA) / Tucker Act / Jurisdiction / Standing
In
Raytheon Co.,
the court denied the Government's motion to dismiss a
count in the contractor's Complaint, holding that it had jurisdiction over
the contractor's claim alleging that the Contracting Officer's directive
that the contractor deliver vendor lists containing technical
data with markings she specified was invalid because she failed to follow the statutory procedures governing challenges to restrictive markings.
In
Vanquish Worldwide, LLC, a case involving dispositive motions
filed by both sides concerning claims by an SDVOSB regarding trucking services
IDIQ contracts in Afghanistan, the court: (i) rejected
the Government's jurisdictional argument that CDA breach of contract claims concerning the failure to award award
task orders must be dismissed due to FASA's limits on protests of such
awards; (ii) held that the IDIQ contract's minimum order provision did
not shield the agency from claims involving separate obligations
under the contract regarding fairness in assigning task orders among
multiple contractors; (iii) noted that, for purposes of surviving the Government's motion to
dismiss for failure to state a claim, a contractor may assert a claim
involving the breach of the implied duty of good faith and fair dealing based "on information and belief" when the facts
are peculiarly within the possession and control of the Government or where the belief is based on factual information that makes the inference of culpability plausible;
(iv) held that, despite the high standard of proof required for
claims alleging bad faith on the part of the Government, the court
would not dismiss the contractor's claim that Government's refusal to exercise an option was
made in bad faith before the parties had not yet had a chance to conduct discovery
on the issue; but (v) dismissed the contractor's claims for nonpayment of demurrage because (a) the
contract specifically disclaimed the Government's responsibility for
delays caused by non-U.S. Government security forces, specifically
those of the Afghan government, even though the contractor was required to
use them, and (b) the Government's interpretation of the
contract's demurrage provisions was reasonable and harmonized the various clauses on the subject whereas
the contractor's interpretation did not.
In
Penrose Park Assocs., LP, the court (i) dismissed
the plaintiff's CDA breach claims because the CDA certification was
only signed by the plaintiff's agent (its attorney) and (ii) held it
lacked jurisdiction over
the counts in the Complaint sounding in tort (negligence) or based on state law.
The court dismissed a suit by
Pacific Coast Community Services, Inc. because the plaintiff did not
identify any contractual provision that the Government breached by
withholding amounts from the plaintiff's invoices.
In
Doyon Utilities, LLC, the court held that, because the contract contained a specific provision excepting interest from the
Changes clause, the contractor was precluded by sovereign immunity
from recovering interest on borrowings through a claim for an equitable adjustment.
In
CanPro Investments, Ltd., the court denied
the Government's motion to dismiss one count in the Complaint because
the legal theory articulated in the underlying claim was sufficiently close to
the theory espoused in the Complaint so that the Contracting Officer was put on
notice of the matter at issue, especially where both the claim and the
Complaint were based on the same operative facts, and, thus, the Complaint
did not present a new claim not previously submitted to the Contracting
Officer.
In HCIC Enterprises, LLC d/b/a HCI General Contractors,
the court dismissed all claims not
included in the contractor's original complaint because the contractor
did not allege
factual and legal bases to support them and they had not been previously
submitted to the Contracting Officer for a decision.
In
Philip Emiabata d/b/a Philema Brothers, the court: (i) dismissed a Postal Service contractor's default termination claim on the basis
of res judicata because it had been decided in a
prior CoFC
decision and
affirmed on appeal to
the CAFC; and (ii) transferred a claim related to
the propriety of contractor's suspension from the contracting list (over which
the CoFC lacks jurisdiction) to federal district court.
In
Hydraulics International, Inc., the court denied
the Government's motion to dismiss the suit based on
the alleged absence of a Contracting Officer's final decision because
the letter
from the Contracting Officer described itself as a final decision and notified
the contractor of its CDA appeal rights.
In Johnson Lasky
Kindelin Architects, Inc., the court held that, pursuant to the CDA
and the Tucker Act, it
lacked jurisdiction over a case predicated upon a government claim contained in a
single contracting officer’s final decision finding that two, unrelated contractors
were
jointly and severally liable for the same injury and sum certain arising from independent breaches of their respective contracts,
and the final decision, being based on a theory of damages sounding
in tort was, itself, invalid, under the CDA.
In
Zafer Constr. Co., the court granted the
Government's motion to dismiss the suit because the contractor failed to present
its delay claim to the Contracting Officer
within six years of its accrual, and the earlier submission of, and subsequent
discussions concerning, an REA (which did not satisfy the requirements
for a CDA claim) did not toll the limitations period.
Changes/Breach/Contract
Interpretation/Defective Specs/Authority
In
Coastal Park LLC and Meyer Landau, the court
held that the Government had correctly declared a breach, terminated
a real estate sales contract, and retained the contractor's earnest deposit
as having been forfeit after
the contractor failed to make timely full payment even though the
Government had given it several extensions of the payment due
date.
In
HCIC Enterprises, LLC d/b/a HCI General Contractors, a case
involving contract interpretation, the court held that, contrary
to the contractor's contentions, a contract's access-to-site provisions did
not require the Government to permit the roof repair contractor to work on
more than one roof at a time at a federal prison.
In
JKB Solutions and Services, LLC, the court denied the Government's motion to dismiss
(or, in the alternative, for summary judgment) because a task order
under an ID/IQ contract was latently ambiguous as to whether it
required the Government to order a certain number of classes per ordering
period.
In
Information Systems & Networks Corp., the court held, inter alia, that: (i) the plain language of
a bilateral settlement agreement concerning a prior case at the
court operated
as an accord and satisfaction precluding the contractor's current indirect
cost claim for specified years; and (ii) the contractor's Chief Financial Officer
had apparent authority to bind the contractor to the indirect cost rate
agreements he signed, especially where, for seven years, the contractor
failed to raise the issue of his alleged lack of authority. However, in
New England Specialty Services, Inc., the court denied the Government's motion for summary judgment
concerning various delay claims by the contractor because issues
of fact remained concerning, inter alia, the length of delay
the contractor could claim, whether an agreement operated as an accord
and satisfaction, and the critical path.
In
North American Landscaping, Constr. and Dredge Co., a case
involving contract interpretation, the court
held that the
unambiguous, plain meaning of the contract provisions concerning payment for
the amount
of material removed during dredging work based on differences in
before- and after-soundings precluded the plaintiff's claim for re-dredging work required to achieve
the required depth.
In
ECC International Constructors, LLC, a decision it labeled as nonprecedential,
the CAFC affirmed the
prior ASBCA decision that: (i) the contract did not
entitle the plaintiff to additional
compensation for heightened base security procedures implemented by a third party operator of
a military base; and (ii) parole evidence would not be permitted
because the contract was not ambiguous and the proffered evidence was in form
of statements made after the dispute arose.
In
Seneca Sawmill Co., which involved the Government's motion
for summary judgment in a action for the Government's alleged breach (by partial termination) of
a timber sales contract, the court held: (i) the
action was not barred by either (a) issue preclusion or
(b) claim preclusion based on prior litigation in a district court
because that prior action involved different issues, and the breach claim
could not have been brought by the contractor in the district court;
(ii) the Government did not breach the implied duty of good faith and fair dealing
by conducting an environmental assessment that went beyond what had
been
required by the district court decision because the Government's actions were
not directed toward harming the contractor and were contemplated under
applicable environmental requirements; and (iii) the contractor did not waive
its breach
claim by continuing to perform on the unterminated portion of the contract
(since that was a means to fulfill its obligation after a breach
to mitigate its damages).
In
The Tolliver Group, Inc., the court held,
inter alia, that in a fixed-price, level-of-effort
contract, the contractor was entitled to an equitable adjustment
for legal fees it had incurred in the successful defense of a
qui tam suit that had been based on the consequences of the
Government's initial failure to provide a technical data package
(which failure had breached the Government's implied warranty of
the contract specifications under the
Spearin
doctrine) because a
qui tam action is not a third party claim beyond the scope of
the
Spearin
doctrine since it is brought on behalf of the Government, which
is the real party in interest. Subsequently, the CAFC
vacated the decision because the claim the contractor
submitted at the CoFC was materially different from the
one it had presented to the Contracting Officer for a
decision.
Terminations
In
Virginia Electric and Power Co. d/b/a Dominion Energy Virginia,
the court denied the contractor's claim for electrical system upgrade costs that
it might incur following a convenience termination because the
costs were unconnected to the work performed under the terminated contract, especially where the contractor failed to prove that the termination resulted in a legal obligation under state law for the contractor to upgrade the system.
In
ACLR, LLC, the court held, inter alia, that:
(i) the Government's actions in terminating audits performed by the contractor
because of questions concerning the adequacy of those audits were constructive
terminations for convenience rather than breaches under the contract
clause (FAR 52.212-4(1)) allowing the Government to terminate all or any
part of the contract for its sole convenience; and (ii) the court
lacked jurisdiction over
the portion of plaintiff's sales tax audit claim that had not been previously
submitted to the Contracting Officer for a decision.
In
JKB Solutions and Services, LLC, the court held
that, in a contract for the services of instructors that
contained a "Termination for Convenience" clause and stated the
maximum number of courses that could be ordered but was ambiguous as
to whether the Government was required to order the maximum, the
Government partially, constructively terminated the contract
for convenience by ordering fewer than the maximum number, and the
contractor was entitled to compensation only for the courses it had provided.
In
Cherokee General Corp., which involved a disputed default
termination, the court, inter alia,
granted the Government's summary judgment motion concerning the
contractor's differing site conditions claim because the contractor presented
no evidence regarding either (i) an affirmative representation in the
contract concerning soil conditions or (ii) the contractor's inability
to anticipate such conditions. The court also dismissed the
contractor's monetary claim for damages resulting from the
default because no convenience termination claim had been
submitted to the Contracting Officer, which would be required if
the court were to find the default termination improper.
Equitable
Subrogation
In
Capitol Indemnity Corp., the court held that the
surety's equitable subrogation rights were not triggered as to most
progress payments made by Government because the surety had not yet asserted its rights, and
the contractor was still working with the Government to resolve its problems with contract
performance so the Government did not have the required knowledge of the default under the
bonds.
Discovery,
Evidence, Procedure
In
Kudu Limited II, Inc.,
the court denied the Government's motion to suspend discovery pending
the resolution of the Government's motion for judgment on the pleadings primarily because
the Government had delayed both (a) its responses to discovery requests and
(b) its filing of the motion to dismiss.
In
The Hanover Ins. Co.,
the court denied the contractor's
motion to strike a government filing concerning an attorney's alleged lack of candor to the court when appearing as a witness.
In
Colonna's Shipyard,
Inc., the court (over the contractor's
objection) granted the
Government's motion to transfer a case to the ASBCA because the ASBCA appeal was filed first, the cases involved the same contract and similar issues, substantial effort had already been expended at the ASBCA, and
the transfer would avoid duplication of efforts
In
HCIC Enterprises, LLC d/b/a HCI General Contractors, the court denied the contractor's motion to file a second amended
complaint because,
inter alia, (a) it asked the court to scrutinize the process leading
to the Contracting Officer's final decision when the court reviews claims
de novo and (b) it did not allege sufficient
facts to support its claim of a bad faith termination.
In
Ehren-Haus Industries, Inc., the court discussed
the standards for analyzing motions to limit the scope of depositions
during discovery.
In
Marine Industrial Constr., LLC, which involved procedural
challenges by each party to aspects of the other's filing in cross motions for summary judgment
in a case involving a disputed default termination, the court: (i)
denied the plaintiff's motion to strike (as untimely) an objection in
the Government's motion; (ii) denied the plaintiff's objection to
the authentication of certain exhibits in the Government's motion; (iii)
granted the Government's motion to strike certain testimony of plaintiff's
witness statement as lay witness opinion; and (iv) denied the plaintiff's
motion to re-designate that lay witness testimony as expert opinion.
Court of Appeals for
the Federal Circuit
Jurisdiction/Standing/Res
Judicata
In Electric Boat Corp.,
the CAFC affirmed the ASBCA's
prior decision that the contractor's claim was barred by the CDA's
six-year limitations period, which began to run at the time a change of
law (that allegedly increased the contractor's costs of performance)
became applicable to the contract, not when the Government, much later, denied its cost
proposal for a price adjustment.
In
The Boeing Co., the CAFC reversed the
prior CoFC decision and held that: (i) jurisdiction over illegal exaction claims does not
require a money-mandating statute; and (ii) the contractor had not waived its claim by failing to
raise it prior to award because, at that time, the agency could not have resolved
the objection favorably to the contractor and it would not have been ripe for judicial
review.
In
McLeod Group, LLC, a decision it labeled as nonprecedential, the CAFC affirmed the CoFC's prior dismissal of
a suit for lack of
jurisdiction because the BPAs at issue were not "contracts" with the United
States, lacking mutuality of both intent and consideration.
Changes/Breach/Contract
Interpretation
In
Team Hall Venture, LLC, a decision it labeled as nonprecedential,
the CAFC affirmed the
prior ASBCA decision because
an unambiguous
general release signed by the contractor barred "any" claim "for monetary
or other relief to this contract."
In
Cooper/Ports America, LLC, the CAFC affirmed the prior
ASBCA decision that, especially given the contemporaneous actions by
the parties, the Government's email satisfied the requirement of FAR
52.217-9 to provide preliminary written notice of the Government's intent to exercise
the contract's option.
In
ECC International Constructors, LLC, a decision it labeled as nonprecedential,
the CAFC affirmed the
prior ASBCA decision that: (i) the contract did not
entitle the plaintiff to additional
compensation for heightened base security procedures implemented by a third party operator of
a military base; and (ii) parole evidence would not be permitted
because the contract was not ambiguous and the proffered evidence was in form
of statements made after the dispute arose.
In
United States Army Corps of Engineers v. John C. Grimberg Co. the
CAFC reversed the
prior ASBCA decision
and held that the
contractor was not entitled to a price adjustment for an alleged Type I
Differing Site Condition because its interpretation of the contract
had been found to be unreasonable, even if the ASBCA also had found the
Government's interpretation to be even less reasonable.
In
Parsons Evergreene, LLC, the CAFC held
that: (i) contrary to the
ASBCA's prior decision, a task order for the construction of two buildings was not
a NAFI contract but was made by the Air Force, and the ASBCA, therefore, had CDA
jurisdiction over an appeal involving the contract; (ii) the contractor failed to timely
appeal the Board's decision on its payroll claim; (iii) the ASBCA correctly concluded
the contractor had not offered sufficient proof of damages under one theory of
recovery, and the contractor first raised the issue too late in its request for
the ASBCA to
reconsider its decision; and (iv) the Board erred in limiting the contractor's recovery for
an equitable adjustment--the contractor should be awarded the difference between its
actual reasonable costs of the changed work and what it would have cost had the work
remained unchanged.
In
Agility Public Warehousng Co, K.S.C.P, the CAFC vacated portions of the
prior CoFC decision and held, inter alia,
that: (i) to trigger the Debt Collection Act's
(DCA) offset provision, a pre-existing, valid debt must first be owed to the United States;
(ii) evaluating the validity of an offset under the DCA
necessarily involves determining the
validity of the United States’ determination that a pre-exiting debt is owed;
(iii) the Government has an independent, Constitutional right to recover overpayments of money
appropriated
by Congress for a specific purpose even where the United States is acting as
the contract administrator for the Government of Iraq; (iv) the CoFC erred in failing to
address the plaintiff's contention that no underlying overpayment had occurred;
and (v) the Government did not afford the contractor all the protections afforded by
the DCA prior to
offsetting to recoup the alleged overpayment in this case.
In
Kiewit Infrastructure West Co., a decision involving the proper interpretation of the phrase "environmental impacts" in a
contract for road design and reconstruction, the CAFC reversed the
prior CoFC decision and held that the contractor reasonably interpreted
the phrase as including "wetlands analyses" and, therefore,
reasonably concluded that it would not have to perform any
wetlands analyses if it intended to dispose of waste at designated government
waste disposal sites.
In
The Boeing Co., the CAFC reversed the
prior ASBCA decision and held that DFARS 227.7103(f) applies only to markings on
technical data that actually restrict the Government's rights in that data. The
court remanded the case to the Board to determine whether or
not the legend in this dispute did restrict the Government's
rights.
In
BGT Holdings LLC, the CAFC affirmed
the portion of the
prior CoFC decision dismissing the contractor's claim
for breach of the duty of good faith and fair dealing, but
vacated and remanded the portions of
the CoFC's decision
that had held that, by agreeing
to a nonstandard changes clause unique to the Naval Surface Warfare Warfare Center Carderock Division,
the contractor had waived its claims for constructive change through ratification, official change through waiver, and breach for failure to provide an equitable adjustment. The
special clause at issue reads as follows: (a) Except as specified in paragraph (b) below, no order, statement, or conduct of Government
personnel who visit the Contractor’s facilities or in any
other manner communicates with Contractor personnel during the performance of this contract shall constitute a change under the “Changes” clause of this contract. (b) The Contractor shall not comply with any
order, direction or request of Government personnel unless
it is issued in writing and signed by the Contracting Officer, or is pursuant to specific authority otherwise included as a part of this contract.
Cost Principles
In
Kellogg Brown & Root Services, Inc., the CAFC affirmed the prior
ASBCA decision
(without reaching the issue whether the Government had breached
the contract) on
the basis that the contractor had not proven that its claimed
costs were reasonable. The dissenting judge argued that the case should have been remanded to
the ASBCA to
investigate that issue because it had not been briefed and analyzed thoroughly
either originally or on appeal.
This
website links to resources on the web concerning
government contracting. It is not intended to provide
legal advice. Moreover, I do not vouch for the
completeness, currency, or accuracy of the sites to which
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