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2024 Procurement Review--Contract Disputes



Contents

Boards of Contract Appeals

Court of Federal Claims

Federal Circuit

Jurisdiction/CDA 

CDA/Jurisdiction

CDA/Jurisdiction

   

Changes 

Changes,  Breach, Interpretation

Changes/Breach/Contract Interpretation/Defective Specs

Terminations

Terminations

Terminations

Fraud/Anti-Kickback

Costs/CAS

Costs/CAS

EAJA

Quantum

Discovery, Evidence, Procedure

Procedure

Fraud

EAJA

EAJA/Attorneys Fees

Supreme Court

 

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

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

In ECC Int'l Constructors, LLC, based on the CAFC's recent holding on appeal that the CDA's sum certain requirement is not jurisdictional, the ASBCA held that the Government had forfeited its right to request dismissal of a claim for lack of a sum certain because it waited until after the hearing on the merits to do so.  The Board reached reached the same conclusion in a companion case decided the same day.

In McCarthy HITT – Next NGA West JV, the ASBCA denied the Government's motion to dismiss the appeals on the grounds that Complaint failed to state any claim upon which relief could be granted. Specifically, the Board held that: (i) the contractor sufficiently alleged the elements required for (a) at least one constructive change claim, i.e., that the Government required it to perform in a manner different from the contract requirements, (b) a constructive suspension of the work, and (c) a finding of at least one breach of the implied duty of good faith and fair dealing; and (ii) the Government's sovereign acts defense was not conclusively established by the pleadings alone as an affirmative defense to the entirety of all the claims, as it must be for the Government's motion to dismiss to succeed. 

In Windamir Development, Inc., the ASBCA held it had jurisdiction over the contractor's appeal from a default termination, but not over: (i) its claim of government-caused delay not previously presented to the Contracting Officer for a decision; (ii) its request for a declaratory judgment that its interpretation of certain contract specifications was correct (because in the terminated contract, this was no longer a live dispute); and (iii) its claims for monetary relief because no monetary claim had previously been presented to the Contracting Officer.

In Alexander Tyler Corp., the CBCA held it lacked jurisdiction over an appeal from the denial of an agency-level bid protest.

In MTS General Trading & Constr., the ASBCA denied the Government's motion to dismiss an appeal because, as is common practice in Iraq, the various names for the Iraqi company performing orders under a BPA referred to a single legal entity,  and the various names for the company's officer on the BPA, individual orders, and the claim certification referred to the same individual, so the entity identified as the contractor in the claim and the individual who certified the claim were both unobjectionable. 

In Royal Hawaiian Movers, Inc., the CBCA held it lacked  jurisdiction over a claim not presented to the Contracting Officer before the appeal was filed.

In Aviation Training Consulting, LLC, the ASBCA denied the Government's motion to dismiss the appeal of a claim for equitable adjustment for lack of jurisdiction because there was no indication in the legislative history that Congress intended to exclude claims involving Section 3610 of the CARES Act from the operation of the CDA. 

In Thomas Creek Lumber and Log Co., which involved a claim for breach of a timber-sales contract related to its termination, the court first rejected the Government's contention that the claim had not previously been presented to the Contracting Officer because his decision, itself, signaled his awareness of the amount and basis of the claim. The court then (i) dismissed two counts of the Complaint based on contract interpretation because the Government clearly terminated the contract using a provision different from the one on which the plaintiff's claim relied (i.e., due to an environmental disaster, namely a fire, rather than merely environmental considerations); (ii) dismissed another count because the plaintiff failed to cite any contract provision that the Government had allegedly breached; but then (iii) declined to dismiss a count alleging that the Government had  failed to follow required rate redetermination provisions because there were disputed issues of fact that would require further development in the record. 

In Dashti Sanat Logistics and General Contracting, the ASBCA dismissed an appeal because it could not establish there had been an underlying claim to the Contracting Officer (the contractor alleged it had submitted a claim but acknowledged the Contracting Officer had never received it). 

In Kandahar Mahali Transit & Forwarding LTD., the ASBCA held that: (i) it lacked jurisdiction over decisions that the contractor failed to timely appeal because the Contracting Officer's willingness to reconsider certain decisions did not imply he was reconsidering all of them, and for six decisions denying payment where the Contracting Officer offered the contractor the opportunity to submit invoices but the contractor failed to do so, there was no dispute for the Board to adjudicate; (ii) despite some less than stellar word choice, the release language in a mod was a general release of the contractor's claims; and (iii) the contractor's lack of appreciation of  the ramifications of what it was signing was not an excuse, plus the contractor did not establish it signed the release under duress: "[The contractor] has not identified any evidence showing that it accepted the terms of the settlement involuntarily, that it had no alternative to acceptance, or that the government engaged in coercive acts. 

In Heffler Contracting Group, the ASBCA denied the Government's motion to dismiss an appeal of a default termination for lack of jurisdiction. The Board held that the fact that the contractor had raised the affirmative defense of excusable delay in its Complaint without having previously submitted a claim for a time extension to the Contracting Officer did not deprive Board of jurisdiction over the basic appeal of the termination because it is a government claim, and the Board could have required the Government to file the Complaint. 

In Rock Supremacy LLC, the CBCA held that it lacked jurisdiction over an appeal filed by a subcontractor of the prime contractor to which the Contracting Officer's decision had been addressed.

In Woirhaye Logging Co., the CBCA denied the Government's motion to dismiss an appeal allegedly sounding in tort because alleging that the Government negligently failed to fulfill its contractual duties is sufficient to establish the Board's jurisdiction. 

In Williams Bldg. Co. (a decision difficult to summarize because, as the Board notes, both parties went off on tangents in their pleadings and arguments), the CBCA denied the contractor's motion to strike the Government's "affirmative defense" to the contractor's T for C claim. Specifically, the Government alleged that the contractor had progress billed the Government for certain subcontractor costs that it "falsely certified" it had reimbursed them for, which was a prior material breach. The contractor maintained this was an allegation of fraud over which the Board lacks jurisdiction. The Board reasoned that because the T for C turned the fixed-price construction contract into a cost-reimbursable one, the Government's defense was not really an affirmative defense and did not require the Board to determine an issue of fraud since all the Board would have to do would be to determine the quantum of costs incurred to the date of termination. 

In Gardner Construction & Industrial Services, Inc., the CBCA denied the Government's preliminary motion to dismiss for lack of jurisdiction based on the fact that the contractor's new owner (who filed the appeal) had bought all the stock of the original contractor. The Board reasoned that the CAFC's precedent in Engage Learning, Inc., established that all that is required for an initial determination of jurisdiction is a non-frivolous allegation of a contract with Government, which was made here, so any motion to dismiss will have to be decided on the merits.

In Quality Trust, Inc., the CBCA dismissed allegations in the Complaint regarding reformation of the contract for mutual mistake, partial termination of the contract, and the amount of final payment due because they were not tied to the amount in the claim previously presented to the Contracting Officer. The Board, however, denied the Government's motion to dismiss for failure to prosecute because the contractor's failure to comply with the Board's directions could not yet be considered "egregious." 

In North Wind Constr. Services., LLC, the ASBCA denied the Government's motions to dismiss two appeals brought before the Contracting Officer issued decisions as premature because: (i) in one instance, the Government offered no evidence that the time the Contracting Officer had established to issue his decision was reasonable; and (ii) in the other case, by the time the motion to dismiss had been filed, an unreasonable amount of time had passed without a decision. Subsequently, the Board denied the Government's motion for reconsideration.

In The Sithe Group, LLC dba TSG Industries, the ASBCA dismissed, as untimely, an appeal filed almost two and a half years after the Contracting Officer's decision because: (i) the contractor offered no evidence that the Contracting Officer had led it to believe the Contracting Officer was reconsidering his decision; (ii) a later unilateral mod that made no demand for payment on the contractor was not a government claim and did not vitiate the Contracting Officer's decision; and (iii) there was no equitable tolling because there was nothing to show that the contractor had diligently pursued its rights or that any extraordinary circumstance had prevented it from filing its appeal. 

In FedResults, Inc., the CBCA denied both: (i) the Government's motion to dismiss an appeal on the basis that the contractor did not state a sum certain in the notice of appeal (which it designated as its Complaint) since the sum certain requirement applies to the claim submitted to the Contracting Officer, not the notice of appeal; and (ii) the Government's motion to dismiss the appeal based on the contractor's alleged failure to establish compliance with Severin doctrine, i.e., being liable to its sub on a pass-through claim, because the motion was based on evidence outside the Complaint which the plaintiff had not yet had an opportunity to address, the motion, therefore, being premature. 

In US Pan American Solutions LLC, the ASBCA found a contractor's notice of appeal from a default termination was untimely because: (i) there was sufficient evidence (including its President's admission) to establish when the contractor received the decision; and (ii) the Contracting Officer's failure to include the standard appeal rights language in the decision was not fatal because the circumstances showed the contractor was aware of its appeal rights, and the contractor did not allege prejudice from the absence of the standard language.

In Tri Vet Contracting Co., the CBCA dismissed an appeal for failure to state a claim because the FFP contract placed the risk of material price increases (including those allegedly caused by the COVID pandemic) on the contractor. 

In Avue Technologies Corp., the CBCA originally held that it lacked jurisdiction over disputes involving a software license agreement because that was not a procurement contract under the CDA. However, the CAFC vacated and remanded the decision because (as the CAFC saw it), the plaintiff had alleged a contract with the United States, which was sufficient to confer jurisdiction. The court noted that in the positions taken in the parties' briefs, it was unclear whether the contract was the software license agreement or the underlying FSS contract or some combination of the two. On remand, the CBCA (clearly uncertain about the reach of the CAFC's decision) held, in the alternative that: (i) where the appellant licenses software that another company sells under a GSA FSS contract, the software license agreement is a contract, but it is not a procurement contract, and, thus, the Board lacks jurisdiction; or (ii) the appellant is not a contractor with the Government and, thus, has no rights under the license agreement that it can enforce against the Government. 

In Case Healthcare Solutions, Inc. d/b/a Case HCS of Reston, Virginia, the ASBCA denied the Government's motions to dismiss both: (i) Count I of Complaint for lack of jurisdiction, holding that the claim submitted to capture the contractor's collection fees on amounts billed but not collected prior to the expiration of the contract was not a routine request for payment where the contractor could not submit a routine invoice for the claimed amounts under the contract because it could only invoice for monies collected; and (ii) Count II of the Complaint for common law breach damages (as allegedly never having been submitted to the Contracting Officer) because it was based on the same set of operative facts as the claim previously submitted to the Contracting Officer. 

In Quality Trust, Inc., the ASBCA dismissed an appeal of a termination for cause as moot because the Contracting Officer had converted it to a termination for convenience.

In Logistics and Rental Car SARL, the ASBCA dismissed: (i) four subclaims addressed in a prior Contracting Officer's decision and but not timely appealed; and (ii) three other subclaims because they were explicitly released in a bilateral mod closing out a BPA.

In Erik Robinson d/b/a The Artwork Factory, which involved an alleged concession contract with AAFES, the ASBCA: (i) granted the Government's motion to dismiss a claim for specific performance for lack of jurisdiction; but (ii) denied a similar motion to dismiss a claim for breach of an alleged implied-in-fact contract prior to a decision on the merits because the appellant plausibly "alleged" the existence of a contract, which was all that was required to establish jurisdiction.

In KMK Construction, Inc., the CBCA held that, in an appeal of a Contracting Officer's decision asserting a government monetary claim, the Board lacked jurisdiction over the contractor's monetary counterclaim not previously presented to the Contracting Officer for a decision. 

In DSME Constr. Co., Ltd., despite a clause in the contract providing for a non-CDA process for disputes resolution, the ASBCA held it had CDA jurisdiction over a contract funded by the Republic of Korea because it was executed by a U.S. Contracting Officer on behalf of an executive agency and was for the benefit of the United States.

In Platinum Services, Inc., the ASBCA dismissed an appeal because: (i) the underlying claim for payment of 26 routine invoices was not filed with the Contracting Officer until more than six years beyond the date when the last invoice was submitted and the Government's obligation to pay it had become due (30 days after submission); and (ii) there was no grounds (including an alleged computer crash) for equitably tolling the CDA's six-year limitations period. 

In The Gilchrist Law Firm, P.A., the CBCA held it lacked jurisdiction over the premature appeal of a Contracting Officer's letter stating that it was "highly likely" that the contractor's claim for PPA interest would be denied. 

In Mindseeker, Inc., the ASBCA held that the contractor's submissions for downtime losses, even though labeled as an REA, met the definition of a claim because the submissions included detailed factual bases for the claim and a sum certain (while its requests for compensation for future downtime did not qualify as claims because they were not for something currently due as a matter of right and did not include a sum certain). The Board further found that the submission for downtime losses  included the four statements required for a proper CDA certification, and the submission, when read in the context of the surrounding circumstances, requested a decision from the Contracting Officer.

In MLU Services, Inc., the CBCA: (i) granted the Government's motion to dismiss a claim for nonpayment of invoices because, at the time the claim was submitted to the Contracting Officer, the contractor had not submitted the invoices in accordance with the contract's clear requirements for how to do so, and the contractor's alleged excuses for its failure lacked a factual basis; (ii) held that submitting the invoices more than six months after the original claim was filed and just days before the Contracting Officer issued a decision on the claim did not relate back to the original claim; (iii) found that the Contracting Officer's decision alleging a fraud claim against the contractor pursuant to 41 U.S.C. § 7103(c)(2) was void and unenforceable because such claims are not to be handled in the CDA's dispute resolution process; and (iv) held it lacked jurisdiction over other Government claims first presented on appeal and not the subject of a Contracting Officer's decision. 

In NoMuda, Inc., ruling on the Government's objections to various conts in the Complaint, the CBCA held that: (i) it lacked jurisdiction over a count alleging unjust enrichment under the theory of quantum meruit; (ii) the Government's motion to dismiss the appellant's breach allegations for failure to state a claim was essentially a motion for summary judgment in disguise, which would require a ruling on the merits; and (iii) the Complaint (that for more than a year mostly or entirely after the alleged adoption of an option after the Government placed the prime call order, the Government did not amend the call order as the appellant had been led to believe it would) failed to state a claim of withholding superior knowledge.

In Bear Mountain Cutters, Inc., the CBCA held it lacked jurisdiction over the appellant's claim for damage to its equipment arising out of a BPA, which is not a contract, but did have jurisdiction over a claim for the same damage based upon an order placed under that BPA. 

In WINN Solutions, LLC, the ASBCA held it lacked jurisdiction over an appeal from an alleged default termination because there was no Contracting Officer's decision terminating the contract--only a letter warning the contractor of a possible termination if it failed to meet the contract terms (lacking any of the standard  language identifying it as a final decision and any statement of appeal rights). 

In The Povolny Group, Inc., the CBCA (with the agreement of the parties) dismissed an appeal for lack of jurisdiction because the Contracting Officer's response to the contractor's request for a deviation was not an appealable decision since the contractor had not submitted a claim.  

In Woolpert, Inc., the ASBCA held it lacked jurisdiction over an untimely appeal because the contractor had no reasonable basis to conclude the Contracting Officer was reconsidering the decision at a meeting held between the parties after the decision was issued:

Based on our review of the record, including the video of the December 8, 2022 meeting, the Board concludes that Woolpert did not have a reasonable basis to believe that the contracting officer was reconsidering her final decision. Rather, the record demonstrates that Woolpert simply refused to accept “no” for an answer. . . . At the December 8, 2022 meeting, the contracting officer and another USACE official informed Woolpert at least four times that the decision was final and that Woolpert could appeal the decision if it disagreed. The contracting officer also made it clear that she had agreed to the meeting only as a courtesy due to their past relationship and to assure Woolpert that USACE had thoroughly vetted the decision. While it is true that the contracting officer stated at the end of the meeting that she would speak with other USACE officials, she said this only after Woolpert continued to badger her. She never stated that she would reconsider the decision, and a Woolpert official acknowledged that the decision was final. 

Changes/Constructive Changes/Contract Interpretation/Breach/Authority

In Abdul Mutakaber, the CBCA (interpreting a lease) held that the withdrawal of U.S. forces from Afghanistan did not result from the "destruction" of the leased premises under the "Destruction of Premises" provision, and, therefore, did not give the Government the right to immediate termination under that provision. Therefore, the agency's abandonment of the premises would be considered a constructive termination for convenience under the separate termination provision, but the termination clause did not contain any requirement that the Government formally "return" the terminated properties to the lessor (or protect them) following the termination. See also subsequent decision setting quantum.

In Sonabend Co., the ASBCA denied the Government's motion for summary judgment due to material issues of fact. Specifically, the Government claimed that broad, unqualified release language in two mods meant they constituted a release and accord and satisfaction of all the contractor's claims on all task orders, but the fact that a separate mod was signed for each one of two of the task orders suggested that the release in either mod was not intended to cover all task orders (else there would not have been a need for two mods). 

In Edgewater Construction Services, LLC, which involved contract interpretation, the CBCA held that: (i) a contract requirement to "REUSE EXISTING [PNEUMATIC] TUBE TRANSFER STATION LOCATION TO EXTEND SERVICE” to new strctural additions required the pneumatic tube systems installed in the new additions to connect to the existing Swisslog system; (ii) the tube system desired by the contractor would not connect to the existing Swisslog system; (iii) the agency did not change the contract by rejecting the use of the system proposed by the contractor and requiring the Swisslog system, which was only one that would connect to existing system; and, therefore, (iv) the contractor was not entitled to its extra costs of installing the Swisslog system.

In CSI Aviation, Inc. (on remand from the CAFC), although the CBCA denied cross motions for summary judgment due to disputed issues of fact, it held that the contractor's standard commercial terms and conditions (which the CAFC had held were incorporated in the underlying schedule contract) could not be disregarded entirely just because some of them were inconsistent with federal statutes and regulations when the contractor did not rely on the disputed provisions in submitting its claims and the provisions were not contrary to any rights that Government must assert to defend against the claims. The Board also noted there were other issues related to the Order of Precedence clause that had not yet been argued by the parties, and, therefore, would not be addressed at this time by the Board. 

In Hamp's Constr. LLC, the ASBCA denied a Type I differing site condition claim because there were no representations in the contract documents concerning the admittedly unexpected conditions the contractor encountered at one point in the site. 

In Rita R. Wadel Revocable Living Trust and 229 Jebavy Road, LLC dba Ludington Industries, the CBCA: (i) denied the Government's allegation that the assignee of a lease lacked standing under the Anti-Assignment Act, 41 U.S.C. § 6305(a) (2018), and the Assignment of Claims Act, 31 U.S.C. § 3727, because (a) the Contracting Officer's recognition of the assignee in the final decisions established an implied-in-fact novation and (b) the assignment was just a reorganization of trust assets between the same parties and, therefore, was a transfer by operation of law, exempted from the Anti-Assignment statues; (ii) held that the Government/lessee breached the implied  covenant not to commit waste by contaminating the building with lampricide during the lease term; but (iii) held that the lessor's recovery for breach of the implied covenant not to commit waste was limited to the diminution in the building's fair market value and could not extend to the costs of demolishing the damaged building and constructing a new one.

In Amentum Svcs., Inc., which involved claims for extra costs related to the COVID epidemic, the ASBCA held that: (i) pursuant to FAR 52.222-43(d) and the contractor's collective bargaining agreement (CBA) for one contract location, which was specifically made dependent on California law, the contractor was entitled to an adjustment to reflect its actual increase in applicable fringe benefits in the form of COVID related sick leave mandated by California law and the Navy's 14-day quarantine policy, especially where the Government failed to allege prejudice from the contractor's alleged failure to provide timely notice; (ii) the contractor was not entitled to the same result where another CBA did not provide for the applicability of California law; (iii) the Navy's 14 day quarantine requirement was a sovereign act not directed only at the contractor, which made performance of each party’s contractual obligations impossible during the particular 14-day quarantine periods at issue, thereby establishing a defense by the Government to liability under the "Changes" clause for any increase in costs that the contractor suffered as a result of the quarantine policy; and (iv) COVID and the resultant, associated federal actions were not anticipated when the contract was formed and, therefore, could not be the basis of a claim by the contractor for mutual mistake.

In United Facility Services Corp., the CBCA granted the Government's motion for summary judgment that the O&M contractor breached its contract by failing to respond within the required time to a notice of a burst frozen water pipe in a courthouse. The decision was based, in part, on the fact that the contractor failed to provide any evidence of a force majeure excuse in its response to the summary judgment motion.

In First Place Auto Sales, Inc., the CBCA held that the purchaser of an auto sold at public auction failed to establish that agency misdescribed the condition of its paint because: (i) the agency did not make any representations concerning the paint; (ii) prior to the sale, the agency disclaimed any warranty; (iii) the purchaser failed to take advantage of its opportunity to inspect the vehicle prior to the purchase; and (iv) the remedy sought by the purchaser (the cost of painting the vehicle) was barred by the purchase agreement. The CBCA also noted it lacked jurisdiction over a claim involving another vehicle purchased during the pendency of the current appeal because that claim had never been the subject of a Contracting Officer's decision.

In King Rox LLC, the CBCA granted the agency's motion for summary judgment related to its rejection of non-conforming fuel tanks because they violated clear PO requirements that they be double-walled and UL-142 compliant, reasoning that: (i) the contractor's argument that it supplied a drawing before award showing single-walled tanks was contradicted by the record (including the contractor's own witness); (ii) the contractor's argument that it notified the Government after award that its proposed tanks would not be double-walled was also not supported by the record (the contractor's post-award drawings did not specifically indicate the tanks would not be compliant and their silence on the subject could not be construed  as an affirmative disclaimer, especially when, after accepting the PO, the contractor had become bound by its terms; and (iii) the four days the Government took to inspect and reject the tanks after they were delivered was a reasonable amount of time, so the Government could not be deemed to have accepted them.

In BCI Constr. USA, Inc., on cross motions for summary judgment, the ASBCA held, inter alia, that: (i) the contractor was not foreclosed by Blue & Gold Fleet from challenging the reasonableness of the liquidated damages assessed in the contract because there was no allegation that the contractor was aware of the problem with the rate prior to bidding; (ii) regardless how the liquidated damages rate was derived, an amount equal to 0.01% of the contract price per day was reasonable; (iii) factual issues concerning the date of substantial completion precluded summary judgment on this issue; (iv) the contractor failed to provide any evidence that the contract's concrete mix specification was defective, establishing only that its supplier did not manufacture the type of concrete specified, was unwilling to make changes to its batch plant to provide the concrete required by the contract, and ultimately was unwilling to provide the type of concrete required by the contract specifications; (v) the contractor failed to establish that the contract made any representations as to the contractor's excessive seepage Type I differing site condition claim; (vi) a factual issue of whether and to what extent the condition that eventually caused seepage was present at the time of award precluded summary judgment on the contractor's Type II differing site condition claim; (vii) issues of lack of notice and superior knowledge also depended on unresolved factual issues; and (viii) the contractor was not entitled to additional labor and material costs allegedly caused by the COVID epidemic that was not anticipated when the contract was formed. 

In Kandahar Mahali Transit & Forwarding LTD., the ASBCA held that: (i) it lacked jurisdiction over decisions that the contractor failed to timely appeal because the Contracting Officer's willingness to reconsider certain decisions did not imply he was reconsidering all of them, and for six decisions denying payment where the Contracting Officer offered the contractor the opportunity to submit invoices but the contractor failed to do so, there was no dispute for the Board to adjudicate; (ii) despite some less than stellar word choice, the release language in a mod was a general release of the contractor's claims; and (iii) the contractor's lack of appreciation of  the ramifications of what it was signing was not an excuse, plus the contractor did not establish it signed the release under duress: "[The contractor] has not identified any evidence showing that it accepted the terms of the settlement involuntarily, that it had no alternative to acceptance, or that the government engaged in coercive acts. 

In Patricia I Romero, Inc., dba Pacific West Builders, the ASBCA denied the contractor's defective specification claim because the Spearin doctrine does not apply if contractor does not comply with the specs. However, the ASBCA denied the Government's motion for summary judgment on other matters (e.g., the contractor's standby costs claim) due to disputed material issues of fact. 

In Alexander CPA PLLC, the CBCA held, inter alia, that: (i) even if the Government has fulfilled its ordering obligation by ordering the minimum quantity in an IDIQ contract, the Government can  still breach that contract's implied duty of good faith and fair dealing arising out of other express obligations; and (ii) a reference to an "applicable" VA Financial Policy in the PWS, without more, did not "incorporate" that policy and thus did not impose a contractual duty on the Government to follow it. 

In Framaco Int'l, Inc., the CBCA denied the contractor's claims involving (i) patent ambiguities in the solicitation concerning which the contractor had failed failed to timely inquire and (ii) conditions at site that it should have, but did not, investigate or bring to the Government's attention prior to bidding. The Board also noted that the contractor's reliance on statements from a COR who lacked the authority to change the contract was ill-advised and unavailing.

In Independence Constr., Inc., which involved a contract whose default had not been challenged on appeal, the CBCA held that: (i) the contractor was not entitled to payment for excavation work that did not meet the contract specifications, especially where the amount the contractor sought was dwarfed by the amount the Government had to spend on a reprocurement contractor to fix the defective work; (ii) the contractor was not entitled to the cost of a survey that it voluntarily undertook to perform absent direction from the Contracting Officer; and (iii) the Board lacked jurisdiction over a  claim for the costs of a second survey because that claim had not previously been presented to the Contracting Officer for a decision. 

In Anderson Contracting, LLC, which involved contract interpretation, the ASBCA rejected the contractor's claim that it had been underpaid for compacted fill material it had provided in order to construct a berm as a result of the Government surveying the work before the contractor had finished clearing the site, finding that a  contract provision requiring "removal to within 6-inches of the ground surface of all trees, brush and vegetation" meant removal above ground rather than to a depth of six inches underground as the contractor contended.

In Enfield Enterprises, Inc., the CBCA held that a bilateral release of "any and all claims and liability under or by virtue of this contract or any modification," which did not include any exceptions, barred the contractor's claim that the Government's modifications and errors pushed its performance into a period of adverse weather, even though the release did not mention weather delays, because the contractor's claim was based on the Government's alleged actions, not weather delays.

In Didlake, Inc., the CBCA held that the local county's increased minimum wage did not take precedence over the contract's wage requirement established set by the incorporated DOL wage determination, so the contractor was not entitled to a price adjustment to reflect the county's rate.

In Lusk Mechanical Contractors, Inc., the CBCA denied an appeal seeking compensation under the "Suspension of Work" clause, holding that a stay at home order issued by the Governor of the Virgin Islands during the COVID pandemic meant that the Contracting Officer's own suspension of work order was not the "sole proximate cause" of the suspension, and the seldom-invoked contract interpretation rule of "the last antecedent" did not change the meaning of the Governor's order or the Board's conclusion. 

In Supreme Foodservice Gmbh, which involved contract interpretation, the ASBCA held that: (i) the Government had released its claim because the term "Covered Conduct" in a bilateral False Claims Act settlement document included the funds the Government was attempting to recoup in this appeal; and (ii) the Government's claim was not among the exceptions listed in the settlement agreement. 

In Omran, Inc., the ASBCA granted summary judgment in favor of the Government because the undisputed facts established that the breach damages sought by the contractor as a result of actions by the Taliban were not foreseeable at the original time of contracting. 

In Enfield Enterprises, Inc., the ASBCA held that the contractor had no right to claim material escalation costs in a firm fixed-price contract without an "Economic Price Adjustment" clause, and the Board lacked jurisdiction over the contractor's attempt to restyle that claim on appeal as a constructive change claim based on a delayed notice to proceed because it was materially different from the material escalation claim previously presented to the Contracting Officer for a decision. 

In Red Bobtail Transportation, which involves more interesting issues and analyses than one typically finds in an appeal under the ASBCA's small claims (expedited) procedure, the Board held, inter alia, that: (i)  the Government's contention that two claims were actually one was erroneous because "they were based on different sets of invoices for different missions in different suites, and therefore involve an examination of different operative facts"; (ii) the limitations period on the claim for improper deductions did not begin to run before they were actually taken against the invoices being appealed here; and (iii) the agency's "negative incentives" taken as deductions in this FFP contract were improper liquidated damages because they were meant to penalize the contractor rather than to compensate the Government's for its losses. 

In HELF Investments and Los Portales Assocs., LP, the CBCA denied appeals from the agency's refusal to reimburse two lessors for increases in real estate taxes because the appellants/lessors failed to comply with lease provisions stating that increases in annual property taxes would be reimbursed by the agency/lessee only if the lessors submitted invoices and evidence of payment of the taxes within the times specified in the leases.

In GSI Constr. Corp., the ASBCA denied the Government's motion for summary judgment because the Government failed to mention controlling precedent contradicting its position that the contractor could not recover for a delayed notice to proceed when there was no date set in the contract by which the notice must be issued. The rule is that when there is no set date for the notice to proceed, the Government still is required to issue the notice within a reasonable time.

In Lacy Mechanical, Inc., the ASBCA granted the Government's motion for summary judgment concerning a subcontractor's pass-through claim in a task order for removal and replacement of anchor cables because: (i) a bilateral contract modification that included a release operated as an accord and satisfaction of the contractor's claim for late delivery of, or faulty, GFE, and none of the Government's actions after the modification indicated the Government was continuing to consider the claim; and (ii) the contractor's alternate theory of recovery based on an alleged implied-in-fact contract must be denied because an implied-in-fact contract cannot exist where there is an express contract covering the same subject matter. 

In Shoreline Foundation, Inc., the ASBCA, inter alia: (i) granted the Government's motion for summary judgment denying the contractor's defective specification and misrepresentation claims because, interpreted as a whole, the contract placed the risk on the contractor of determining how future sea and weather conditions would impact the cost and difficulty of the work; but (ii) denied the Government's motion for summary judgment on the contractor's superior knowledge claim because further factual development  would be needed to determine the significance and relevance of a report concerning the site conditions that the Government did not provide to the contractor. Subsequently, the Board denied the contractor's motion for reconsideration of the decision on its misrepresentation claim.

In GEMS Environmental Management Services, the ASBCA denied several parts of cross motions for summary judgment due to open issues, but did hold that: (i) in a matter of contract interpretation, the disputed phrase "shall be provided" in one section of the contract should be given the same meaning that the parties agreed the same phrase clearly had in another section of the contract; (ii) the contractor's delay claim was precluded by the "sovereign acts" doctrine because the decision to change the system for issuing passes to allow access to a facility was aimed at all visitors to the installation, concerned a government function (installation security), and was not to the Government’s benefit as a contracting party; (iii) the contractor was not entitled to its costs of preparing a relatively minor RFP that was subsequently determined to be unnecessary by the Government; and (iv) the contractor was not entitled to Prompt Payment Act interest when the Government withheld money as retainage due to project delays. 

In BAE Systems Technology Solutions & Services, Inc.,  the ASBCA held that the agency had not breached the contract when it failed to reimburse incurred pension withdrawal liability costs pursuant to any of the following provisions relied on by the contractor: (i) FAR 52.222-43 covering SCA price adjustments, because of the CAFC's binding precedent in Call Henry; (ii) FAR 52.237-3 covering phase-outs, because the contractor did not perform any work after contract expiration; (iii) FAR 31.205-7 concerning unquantifiable contingencies, because this contract did not provide for the recovery of such costs; or (iv) FAR 52.215-15, which covers segment closing costs, because the contractor conceded there was no segment closing. 

In United Facility Services Corp., the CBCA held that the O&M contractor for a building breached its contractual obligation to "be responsible for any necessary operation and prevention of damage to equipment during on and off duty hours . . . due to inclement weather . . . or freezing temperatures" by failing to monitor pipes that froze and burst (or to reduce the possibility that they might freeze) where the effects of reasonably foreseeable freezing temperatures could have been mitigated or avoided. 

In Direct Steel, LLC, a decision under the ASBCA's Accelerated Procedure rule 12.3, the Board denied all the contractor's construction contract claims, holding, inter alia, that: (i) the contract (which stated the contractor was to be responsible for "any costs" resulting from its choice of a pre-engineered metal building) unambiguously required the contractor to bear all costs of redesign and construction of the foundation caused by the contractor's choice of the building; and (ii) metal studs installed by contractor did not meet the clear contract requirements and were not equivalent to required items, notwithstanding the contractor's (and its expert's) contrary opinion. 

The CBCA issued four decisions involving issues of contract interpretation concerning a contract with the Department of State to construct an embassy compound in Port Moresby, Papua New Guinea. In one, the CBCA held that the  contractor was entitled to its costs of complying with the Government's direction to install an X-ray machine at a rear entrance that functioned as the main shipping/receiving location and the official vehicle fleet entrance because the contract only required the contractor to install X-ray machines at building entrances that "admit the public." However, the CBCA denied the contractor's claims in three other decisions. First, the CBCA denied the contractor's claim for providing fire-retardant-treated plywood for partition walls and ceilings in areas purportedly not specified in the contract because the contract specifications (which took precedence over the drawings) unambiguously required its use in those areas. Secondly, the CBCA denied the contractor's claim for excess costs resulting from an alleged government directive for the sole-source procurement of a kitchen exhaust hood allegedly outside the scope of contract because contractor's submissions requesting substitutions were late according to the contract requirements and were deficient as well. Finally, the CBCA denied the contractor's claim for the costs of modifying and relocating residual current device enclosures because: (i) the Government's acceptance of submittals did not relieve the contractor of its responsibility to meet the contract's requirements; (ii) the contract unambiguously required the enclosures to be both (a) guarded by dead front panels or another mechanism that would protect the devices against incidental contact and (b) readily accessible; and (iii) there was a patent ambiguity concerning where the items should be located about which the contractor had failed to inquire.

In The Gilchrist Law Firm, P.A., the CBCA held it lacked jurisdiction over the premature appeal of a Contracting Officer's letter stating that it was "highly likely" that the contractor's claim for PPA interest would be denied. 

In Framaco Int'l, Inc., which involved contract interpretation, the CBCA upheld the denial of a claim for the costs of installing a lightning protection system in a contract for the construction of an embassy compound because the contractor's initial work did not comply with the contract requirements, and the Government's approval of shop drawings did not relieve the contractor of its obligation to comply with those requirements. 

In another Framaco Int'l, Inc., decision involving the same contract, the Board held that, although the contractor's interpretation of the contract requirement to provide an updated basis of design was either not within the zone of reasonableness or involved a patent ambiguity about which the contractor had failed to inquire, the amount of the Government's deduction for the contractor's alleged failure to provide this updated basis of design could not be sustained because, inter alia, it was based on the contractor's estimate for obtaining progress payments when the applicable clause stated: "The values in the Detailed Estimate will be used as a basis for determining progress payments, but will not be conclusive as to the amounts due the Contractor or as to the value of changes in the work. 

In yet another Framaco Int'l Inc. decision, the CBCA denied a claim for the costs of allegedly out-of-scope landscaping work because the requirement was clarified for bidders prior to contract award and the contractor did not object. Moreover, the contractor offered no support for its allegations of differing site conditions. In still another Framaco Int'l Inc. decision, the CBCA held that the contractor was entitled to recover on its interpretation of latently ambiguous contract drawings as to the requirements for a door frame. However, the contractor lost on five other claims: (i) the contractor proceeded with changed work regarding a glass partition in a staircase without authorization from the Contracting Officer; (ii) a separate grounding system for the PV system was required by the contract, and, even if it were not, the contractor undertook the work absent directions from the Contracting Officer; (iii) a claim that structural drawings did not include certain elements failed because the architectural drawings did, and the contractor was required to comply with both; (iv) the contractor followed its own submittals in the installation of an irrigation tank vault and was not required to do any extra work by the Government; and (vi) the contractor was not required to use GFE for a security gate, so its claims based upon having to upgrade the GFE were baseless.

In Framaco  Int'l Inc., the CBCA held that the contractor was entitled to reimbursement for the customs fees that it paid on behalf of United States for imported construction materials procured for the  embassy compound construction project in Papua New Guinea (PNG) because the United States was the only entity authorized to obtain the customs exemptions, especially after the PNG Government stopped processing the customs duties exemption documentation submitted by the contractor, and the contract and other available documentation established that the United States was responsible for those fees. 

In Targe Logistics Services Co., which involved a contract with the Army to supply aviation fuel to Afghanistan military aircraft and claims for costs incurred after the Afghan government collapsed and the Taliban took over, the ASBCA held that: (i) where the contract provided for compensation only for fuel actually delivered into designated aircraft, the Taliban's confiscation of undelivered fuel was not the responsibility of the Army because the contract clearly allocated the risk of loss to the contractor; (ii) the Army did not fail to provide security under the "Security Requirements" section of the contract, which stated the contractor was responsible for it; (iii) the local commander rather than the Army was responsible for providing access to the relevant facilities; and (iv) the United States' agreement with the Taliban to exit the country was a sovereign act, shielding the Government from liability.

In United Facility Services Corp. dba Eastco Building Services, the CBCA denied the contractor's claim for costs allegedly associated with changes to the equipment that the contractor was to maintain during performance. Specifically, the Board held that: (i) a site visit conducted by the contractor's subcontractors coupled with the requirement for the contractor to verify the equipment inventory list during the contract's phase-in period was fatal to the contractor's claim that the Government withheld superior knowledge as to accuracy of original list; (ii) the facts that the contractor was required to verify and update the original inventory list to account for changes to equipment during contract performance and that the contractor would be paid for updates undermined its claim that the Government's original list was a negligent estimate; (iii) the fact that the Government was slow to approve some contractor-proposed changes to the list did not rise to level of a breach of the implied covenant of good faith and fair dealing; (iv) because the contract explicitly required that the contractor identify any increased costs of maintenance of newly added equipment and specifically listed the conditions for the contractor to be compensated for those costs, the contractor's constructive change claim for this exact work lacked a foundation since the Government did not change the contractor's duties or the contract's terms; and (v) even if the contractor had established one or more of its theories of liability, it failed to present anything close to adequate evidence of quantum.

In Fortis Insustries, LLC, which involved the Government's motion for partial summary judgment in a dispute over government deductions taken during the performance of a contract for base services operations and maintenance services at a federal building that was finally T for C'ed, the CBCA held that: (i) the use of the term "obligations" instead of "claims" in a bilateral release associated with the T for C did not limit its scope; (ii) the release covered all the contractor's current claims regarding the deductions except for one month that the Government conceded was not covered and one other month that the contractor had indicated in correspondence accompanying the release was still at issue; and (iii) the contractor had not presented sufficient evidence that the release had been signed under duress. 

In David Boland, Inc., the ASBCA first noted it was not (and never is) bound by statements in the Contracting Officer's decision, but reviews each appeal de novo. The Board then denied the contractor's constructive acceleration claim (on work adjacent to a railroad right-of-way) that delays caused by passing trains (under the responsibility of a third party railroad) had been longer than anticipated because: (i) the solicitation clearly warned bidders of the situation with the right of way so the alleged delays were not unforeseeable; (ii) the contractor's subcontractor and its own subcontractor were largely responsible for the project delays; (iii) the contractor's own logs showed it was often performing work during the times it alleged delay caused by the passing trains;  (iv) the contractor failed to present any critical path analysis of the alleged delays; (v) during contract performance, the contractor never requested a time extension from the Government; and (vi) the Government did not explicitly or implicitly direct the contractor to accelerate the work.

In Chugach Federal Solutions, Inc., the ASBCA held that the contactor was entitled to recover its costs of a government-mandated requirement during COVID that the contractor's employees quarantine 14 days before beginning performance because the Government had not established that sovereign acts defense applied since the quarantine was among the events envisioned by a specific contract clause stating that the costs of complying with health and safety directives would be handled under the Changes clause. In other words, the "impossibility" prong of the sovereign acts defense was not met: the quarantine was not an event that made the Government's performance of its contractual obligations impossible.

In Commonwealth Home Health Care, Inc., the CBCA held that: (i) although the Government's estimate in a requirements contract was negligently prepared in multiple respects, the contractor did not establish reasonable reliance on the estimate because, as the incumbent, it had access to all the data underlying the estimate and yet did not make reasonable inquiry as to the flaws in it prior to award, thus waiving its right to pursue the negligent estimate claim; (ii) the fact that Government's actual needs fell below the negligent estimate did not invalidate the option exercises because, inter alia, the contract warned that a discrepancy between the actuals and the estimates would not be a basis for an equitable adjustment; and (iii) the contractor waived its right to object to the untimely exercise of option year 2 by performing for four months before objecting. 

In D2 Government Solutions, a Rule 11 proceeding submitted on the record without a hearing, the ASBCA denied all the contractor's breach claims for almost a complete lack of evidence. The contractor alleged that it had been denied access to a database containing key evidence, but the Board found a lack of evidence for that allegation as well.  

Terminations/Liquidated Damages/Government Claims  

In Adapt Consulting, LLC, the CBCA overturned a partial default termination because the agency did not prove that fault messages in a newly installed door security system were caused by the contractor's allegedly defective system or that the contractor had failed to cooperate with the agency in adequately investigating the problem. The Board also granted the contractor's claim for damages to its equipment caused by planned power outages that were much more severe than the contractor had anticipated. Subsequently, the board denied the contractor's request for partial reconsideration.

In Y2Fox, Inc., the CBCA upheld a termination for cause because the contractor failed to deliver system design documentation required by the contract, but the Board also held that the contractor was entitled to payment for work that had been accepted by the Government. Subsequently, the Board denied the contractor's request for reconsideration.

In BlueIce Constr. LLC, the CBCA upheld the termination for cause of a contract to remove and replace the glycol in the heating system of government building because the contractor did not perform any contract work onsite, failed to respond to the Government's request for an update and to the Government's show cause notice, and did not present any convincing evidence of a valid excuse for its failure to perform. 

In Colony Constr., the ASBCA upheld a default termination in a Rule 11 case submitted on the record without a hearing based on the contractor's failure, inter alia,  to provide some required submittals entirely and its submittal of others that were unsatisfactory absent actual evidence to the contrary or excuse by the contractor, whose current assurances on appeal that the defective work could be cleared quickly were unavailing. 

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

In denying the Government's motion for partial reconsideration of the ASBCA's prior opinion in Allard Nazarian Group, Inc. dba Granite State Manufacturing, the Board held, inter alia, that FAR 52.216-7(g), does not give the Contracting Officer an unfettered right to reduce the costs paid to a contractor without conducting an audit. 

In BAE Systems Technology Solutions & Services, Inc.,  the ASBCA held that the agency had not breached the contract when it failed to reimburse incurred pension withdrawal liability costs pursuant to any of the following provisions relied on by the contractor: (i) FAR 52.222-43 covering SCA price adjustments, because of the CAFC's binding precedent in Call Henry; (ii) FAR 52.237-3 covering phase-outs, because the contractor did not perform any work after contract expiration; (iii) FAR 31.205-7 concerning unquantifiable contingencies, because this contract did not provide for the recovery of such costs; or (iv) FAR 52.215-15, which covers segment closing costs, because the contractor conceded there was no segment closing. 

Quantum 

In CB Portable Toilet Rental and Services, a decision limited to quantum after a prior decision on entitlement concerning a T for C claim in a contract for the delivery and maintenance of portable toilets and hand washing stations for use at Camp Lejeune, the ASBCA found that of a more than $1.3 million claim, the contractor was entitled only to recover $5,150 for changed work and $10,000 start-up costs because: (a) many claimed costs related to efforts during contract performance that already were subsumed in the price paid for completed work; (b) the CARES Act did not apply to a contract awarded after its applicable period; (c) there was no entitlement for delay costs because the previous entitlement decision had found no delay; (d) the claim for the alleged disposal of equipment lacked any proof; (e) there was no proof of the incurrence of alleged costs for waste removal, moving equipment, cutting up the toilets, removing hazardous material, and hazard pay; and (f) there was no support for claims for a bonus for the contractor's owner, flat payments for three offices, liability and vehicle insurance, workers compensation, utilities, maintenance, and travel and food. 

Discovery/Motions/Procedure

In In KUNJ Constr. Corp., the ASBCA denied cross motions for summary judgment because disputed facts existed as to, inter alia: (i) the Government's accord and satisfaction and release defenses based on bilateral mods in that (a) the reasons for the modifications’ time extensions were unknown, (b) the connections between the work in the areas addressed by the modifications and the claims are not clear, and (c) the releases drafted and inserted by the Government did not indisputably reveal the parties’ intentions; and (ii) whether the contractor's claims were barred by the contract provisions cited by the Government.

In The Haskell Co., the ASBCA denied the Government's motion for summary judgment that a bilateral release barred the contractor's claims because there were material disputed facts as to whether there was a meeting of the minds between the parties that "the delays and disruptions arising out of . . . the work as herein revised” in Mod 1 included the contractor's costs incurred due to unusually severe weather and seasonal differences allegedly resulting from the Government's project design changes that pushed construction into adverse weather periods.

In MLU Services, Inc., the CBCA denied (as frivolous and without requiring a reply) the Government's motion to dismiss a portion of an appeal for failure to timely comply with the Board's order for the contractor to file a response within 15 days to the portion of the Government's answer asserting a counterclaim. The Board noted that the Government had filed its motion only four days after the missed deadline and that dismissal for failure to prosecute is a harsh sanction which should not be applied to a single failure to comply with an order from the Board.

In Honeywell Int'l, Inc., the CBCA denied the contractor's motion for summary judgment that a bilateral release barred the Government's claim because the Board found there were disputed issues of fact concerning the scope of the release, specifically whether it covered all the findings in an audit or only one of them.

In NoMuda, Inc., the CBCA allowed the appellant to amend its Complaint to clarify the name of the real party involved in the appeal absent any objection from the Government: "But [the Government] does not oppose appellant’s motion, and we will not invent arguments in opposition."

Equal Access to Justice Act

In Hughes Group LLC,  the CBCA reduced an EAJA award to the extent the successful contractor/litigant had unduly and unreasonably protracted the final resolution of the dispute by rejecting settlement offers and mediation.  

In Conquistador Dorado Joint Venture, the ASBCA essentially used a jury verdict method to award 50% of claimed fees for (a) attorney hours for successful claims, (b) attorney hours for all claims, and (c) litigation support fees for all claims, plus all claimed (a) expert fees and expenses and (b)costs for preparing the EAJA application. 

In Derian, Inc., the ASBCA denied an EAJA application because the Government's position had been substantially justified: two of the contractor's claims were reduced as a result of the Government's arguments, and the Government's position on a third (liquidated damages) claim involved a unique factual background with unclear existing law. 

Court of Federal Claims

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

In  Oxford Federal, LLC, over the Government's objections, the court granted the plaintiff's motion to amend its Complaint filed after oral arguments on the Government's motion to dismiss the original Complaint because there was not undue delay and the amendments would not be futile (i.e., it was possible they would survive another motion to dismiss).

In GoodEarth Distribution, LLC, the court: (i) denied the Government's motion to dismiss the contractor's claim for breach of contract due to nonpayment because the fact that the Government remitted payment to a fraudster account did not alleviate it from its duty to pay the contractor; (ii) held that the contractor did not allege facts that would support its contention that the Government's actions in investigating the possible source of the fraud (including the plaintiff) or denying its CDA claim breached the implied duty of good faith and fair dealing; and (iii) held it lacked jurisdiction over the contractor's claim for a declaratory judgment that the Government's actions amount to de facto debarment because the declaratory judgment was not sought in a bid protest or as "incident of and collateral to" a monetary judgment.

In PGB Hanger, LLC, the court dismissed a suit filed as a Fifth Amendment takings claim because it was actually a contract dispute involving property rights allegedly taken under plaintiff's contract with the Government: "Although [plaintiff] is the master of its own complaint, it may not create Fifth Amendment liability by artfully pleading around its contract claims. It is represented by attorneys, not alchemists. 

In Wolf Creek Railroad, LLC, the court dismissed the suit because: (i) the plaintiff failed to prove that it had submitted a certified claim letter for a decision or that such a letter had been received; and (ii) where a BOA specifically stated that the Government was not a party to tenant use agreements (TUA) that might be executed under it, the plaintiff/party to a TUA was not in privity with Government even though Government had specifically authorized a TUA with it:

A middleman is not automatically an agent. While the Army did provide direction and authorization to [its contractor] in discrete situations, it also apparently intended to use [its contractor] "as a buffer between it and the claims of the subcontractors." [citation omitted] Thus, the agreements here have not created an agency relationship between [the contractor] and the Army, and [plaintiff] is not in privity of contract with the Government.

In MLB Transportation, Inc., the court: (i) denied the Government's motion for summary judgment that the contract was void ab initio due to the contractor's allegedly false representation as an SDVOSB because factual issues remain concerning that allegation; (ii) held that the contractor's claims based on allegedly faulty trip volume estimates were time barred because they accrued more than six years before they were submitted, and the letter contractor relied on to avoid that result was not sufficient to constitute a claim; (iii) held that the contract was patently ambiguous as to whether it was a requirements contract, and, therefore, contractor, by failing to timely inquire, lost its ability to make a claim for breach of requirements contract; and (iv) noted that material issues of fact precluded summary judgment on the contractor's changes claim.  

In GBA Associates Limited Partnership, although expressing sympathy with a firm that had not been paid for providing security services to the Afghanistan government under an Afghan contract that utilized funds provided by the United States to Afghanistan and that was approved by the United States, the court dismissed the suit because the firm did not allege facts sufficient to prove that it had an implied-in-fact contract with the United States to compensate it for the shortfall in funds owed by Afghanistan. Specifically, the firm did not allege facts sufficient to establish that the United States had the intent to contract with it as a guarantor. 

In Avant Assessment, LLC,  the court held that it lacked jurisdiction over claims the contractor discovered during prior ASBCA litigation but never presented to the Contracting Officer for a decision, which, according to the court, remains a jurisdictional requirement despite recent CAFC decisions.

In Triumph Financial Services LLC, the court dismissed a count in the Complaint by the assignee of payments to Postal Service freight motor carrier transportation services contractors alleging violation of the Anti-Assignment Act (31 U.S.C. § 3727(c) and 41 U.S.C. § 6305(b)) because the statute does not apply to the Postal Service. 

In Peraton, Inc., the court denied the Government's motion to dismiss a suit for breach of contract due to the plaintiff's failure to name in the Complaint the specific individual with authority who bound the Government to the alleged contract, such identification not being necessary to survive a motion to dismiss prior to the development of the record.

Changes/Breach/Contract Interpretation/Defective Specs/Authority

In BES Design/Build LLC, which involved contract interpretation, where a task order was ambiguous on the question whether the contractor was to be paid on a per person/per day basis, the court looked to extrinsic evidence, specifically the parties' conduct before the dispute arose, and found the parties clearly acted as if they agreed that was the basis of payment. The court also, inter alia, denied the contractor's claim for unabsorbed overhead under Eichleay because the contractor did not prove it was ever on standby, much less that it was for an indefinite duration.

In JKB Solutions and Services, LLC, on cross motions for summary judgment concerning the Government's alleged liability for breach of contract for failure to order the required number of instructional courses, the court held that: (i) the contract to provide all instructors, transportation, supervision, and non-personal services necessary to perform instructor services was a commercial items contract because it was on SF 1449 for commercial items, explicitly incorporated the standard clauses for commercial items, was for the provision of generic instructional services rather than services unique to the Government, and resulted from market research that determined commercial services for this work were available, especially where the contractor failed to object to that designation prior to award; (ii) because the contract was a commercial item contract, the termination clause in incorporated clause FAR 52.212-4 was applicable, and the Government could use the presence of that clause to support its constructive termination for convenience defense; (iii) even if FAR 52.212-4 were not applicable, the normal fixed-price convenience termination clause (FAR 52.249-2) would be incorporated via the Christian doctrine; and (iv) material issues of fact remain whether the Government breached the contract and, if so, whether it acted in bad faith or abused its discretion, which would render the constructive termination for convenience doctrine inapplicable.  

In ASG Solutions Corp., dba American Systems Group, a case relying on contract interpretation principles, the court held that:  (i) reading all provisions together, a service contract task order required the contractor to assemble a team of 20 qualified professionals at a fixed monthly rate as described in its proposal and was not an illegal personal services contract because the contractor maintained control over its team member employees even though the Government reviewed resumes and approved hires; (ii) the contractor's failure to provide the required fully staffed team was grounds for a default termination despite the contractor's argument that it had not failed to perform the actual requirements of any assignment; and (iii) the Contracting Officer considered the factors in FAR 49.402-3(f) prior to the termination. 

In Reliability and Performance Technologies, LLC, which involved the Government's motion  for summary judgment as to all three counts in a suit for nonpayment of indirect costs in a CPFF IDIQ contract, the court held that: (i) the contractor's failure to provide notice of future costs was not a reason to bar its claim under the "Limitation of Funds" clause because the contract was for "emergent" work that the Government would identify and that the contractor could not predict, especially when the facts could establish that the Government breached its own obligations under the "Allowable Cost and Payment" clause; (ii) a release that the Government claimed barred the contractor's claim was at least ambiguous, especially where the Government's interpretation of the release language was inconsistent with the remainder of the document in which it appeared; but (iii) the contractor's claim for breach of the implied duty of good faith and fair dealing should be dismissed because it was for the same damages as the contractor's claim that the Government had breached the "Allowable Cost and Payment" clause, and the Government did not act in a way inconsistent with the contract's express purpose. 

In Fox Logistics & Constr. Co., the court held, inter alia, that: (i) a subcontractor did not have an implied-in-fact contract with the Government to be paid directly when the prime encountered financial difficulties because there was no mutuality of intent since the Government never accepted any of the subcontractor's proposals and specifically rejected two of them (e.g., the subcontractor's demand that it be paid before it returned to work);  and (ii) the sub was not a third party beneficiary because the Government's letter to the prime requiring it to, inter alia,  agree to a payment plan to get its subs paid and to establish a special bank account to receive payments intended for subcontractors, which the Government had a right to view, did not establish a mechanism for the subcontractor to receive the funds directly.

In Spectre Corp., the court granted the Government's motion for partial summary judgment because the plaintiff's failure to produce its updated expert reports even with time extensions granted by the court left the plaintiff without any evidence to support its claim for lost profits.

Terminations

In Sergent's Mechanical Systems, Inc., the court upheld a default termination of a contract to perform certain HVAC work on a VA hospital because the contractor failed to prove excusable delay. Specifically, (i) the contractor failed to prove that its unambiguous contractual responsibility for abating asbestos somehow was transferred back to the Government during contract performance; (ii) the contract contained  a clear requirement concerning the required diameter for the cooling coils that the contractor was to replace in the HVAC units, and the fact that that requirement was found by following a reference in another section of the contract did not make the contract ambiguous; (iii) the contractor provided no evidence that its difficulties with the cooling coils caused its claimed 32-day delay, and the contractor did not provide a critical path analysis from which the extent of any delay could be derived; (iv) given the contract's language warning the contractor against disruptions to existing hospital operations, the VA was within its discretion to limit the number and duration of power outages caused by the contractor's construction work; and (v) the VA properly compensated the defaulted contractor only for completed work and accounted accurately for the excess reprocurement costs. 

Discovery/Procedure

In Sikorsky Aircraft Corp., the court held that: (i) the contractor's motion to dismiss claims the Government had not yet asserted on the basis of suspicions raised by the Government's discovery requests was not proper; but (ii) a protective order was appropriate to limit the Government's discovery requests to issues raised in the Contracting Officer's decision. Subsequently, the court denied the Government's motion to reconsider the limitation on its discovery requests.

In Highway and Safety Services, Inc., the court transferred a case to the CBCA that was originally untimely filed there in order to consolidate it with a related appeal that had been timely filed. 

In Gilead Sciences, Inc., which involved a discovery dispute, the court held that in seeking to recover attorneys fees as damages after prior findings of the Government's breaches of contracts, the contractor waived the attorney-client privilege over the contents of its attorneys' billing statements and must produce unredacted versions of those records sufficient for a determination of the reasonableness of the fees. 

In EFC Services, Inc., the court denied cross motions for summary judgment concerning the propriety of the default termination of a lease because of factual issues concerning the interpretation of relevant lease terms which are necessary to resolve before the court can determine whether the Government breached the lease. 

In Platinum Services, Inc., the Court of Federal Claims denied the plaintiff's application for EAJA fees because the plaintiff had lost on its claim that had by far the largest dollar value, and the Government's litigation position had been substantially justified on the novel question involved in the smaller value claim on which plaintiff had prevailed.  

In Utility Constr. Co., the court: (i) denied the Government's motion to compel the production of certain documents because the Government failed to demonstrate that there were any specific documents (or class of documents) that existed, but that the contractor had failed to produce, especially in light of the contractor's representation that it had produced all documents; (ii) denied the contractor's motion to compel production of certain documents concerning which it had not yet made a discovery request; (iii) denied the contractor's motion to compel responses to certain interrogatories because the Government had made substantial objections to those interrogatories; (iv) granted the contractor's motion to compel production of certain documents because the Government's response (that the Government would produce a universe of documents it deemed relevant) was improper; (v) granted the contractor's motion to compel the production of documents withheld due to an alleged deliberative process privilege the Government now concedes was baseless; and (iv) ordered the Government to show cause why it should not be sanctioned for withholding those documents. 

EAJA

In Platinum Services, Inc., the court denied the plaintiff's application for EAJA fees because the plaintiff had lost on its claim that had by far the largest dollar value, and the Government's litigation position had been substantially justified on the novel question involved in the smaller value claim on which plaintiff had prevailed.  

 

   

Court of Appeals for the Federal Circuit

Jurisdiction/Standing/Res Judicata 

In United Communities, LLC, the CAFC affirmed the prior Court of Federal Claims decision denying the plaintiff's motion for an enlargement of time to file a late notice of appeal to the CAFC because there was no showing of excusable neglect by the plaintiff, just a "garden variety" attorney miscalculation of the time limit for the notice of appeal.

In Nauset Constr. Corp., the CAFC affirmed the prior ASBCA decision that: (i) the  contractor was not prejudiced by the lack of notice of specific appeal rights in the Contracting Officer's letter terminating the contract for default where the letter directed the contractor to the FAR clause that contained those appeal times; and (ii) the Government's conduct after issuing the default termination did not vitiate it because the contractor could not have reasonably concluded the Contracting Officer was reconsidering the termination decision. The court did note that the Board had made a harmless error by stating that events after the 90-day appeal had expired can never be considered in deciding whether the Contracting Officer has reconsidered the decision.

In BCC-UIProjects-ZAAZTC Team JV, the CAFC affirmed the prior ASBCA decision dismissing an appeal for lack of jurisdiction because the person who submitted the claims was not authorized to do so on behalf of the contractor. 

In Contrack Watts, Inc.-Uejo Kogyo K.K, a decision labeled as nonprecedential, the CAFC upheld the prior ASBCA decision dismissing an appeal by a joint venture because the underlying claim had not been submitted by a party authorized to bind the joint venture. 

In Petro Mex, LLC, another decision labeled as nonprecedential, the CAFC reversed the prior CoFC decision (that a breach claim was barred by the CDA's six-year limitations period) because the breach of contract claim for wrongful termination could not have accrued until the actual termination. 

Changes/Breach 

In Jemison & Partners, Inc., the CAFC affirmed the prior ASBCA decision that the contractor was to be paid only for actual quantity of topsoil placed as opposed to a lump sum based upon an estimate of how much would be required.

In Siemens Government Technologies, Inc., a decision labeled as nonprecedential, the CAFC affirmed the prior ASBCA decision denying the contractor's claims because: (i) the claimed costs were not incurred in connection with the actual task order award (rejecting the argument that because the Government issued a task order authorizing energy conservation work at some sites, it thereby became liable for the proposal development costs the contractor incurred at all sites mentioned in the underlying contract); (ii) there can be no claim for breach of the implied duty of good faith and fair dealing in the absence of a contract; and (iii) there was valid no claim based on superior knowledge where the claimed actions did not result in a task order award.  

In MPG West, LLC, a decision labeled as nonprecedential, the CAFC generally affirmed the prior ASBCA decision, holding that in a contract for the provision of fresh fruits and vegetables to commissaries in Korea and Japan: (i) the contract gave the contractor the discretion whether to use local sources or to import produce and (if contractor chose to import) it was required to follow applicable regulations; (ii) the Government was not required to examine the possible price consequences of the new contract model used in the solicitation and did not undertake to do so; and (iii) the DCAA did not act in bad faith in the weekly pricing meetings. However, the court remanded case for further proceedings to determine whether the Government's requirement to use a specified vendor for bagged salads followed by the determination that its imported prices were too high could be a breach because there was allegedly no local sourcing available for its products. 

In International Development Solutions, LLC, the CAFC affirmed the prior CBCA decision, holding that there was no evidence that the taxes for which contractor sought reimbursement were actually assessed against, or paid by, it (as opposed to entities higher up in its business structure) or were allocable to the task orders at issue. 

In Sage Acquisitions LLC, the CAFC affirmed the prior CBCA decision denying relief to an asset manager contractor for T for C costs and breach damages under HUD's agency's Real Estate Owned ("REO") disposition program because: (i) the contracts at issue clearly and unequivocally stated they were IDIQ contracts with a guaranteed minimum, and the contract sections referring to "all" work in a geographic area did not mean they were requirements contracts because those sections merely described the manner in which the work would be performed and (had they been interpreted as assigning all requirements to the contractor) would have conflicted with a section clearly giving the Government the right to unilaterally reduce the scope of the contractor's geographical region to zero and to utilize other contractors; (ii) a contract provision stating that task orders would be issued on a yearly basis meant that task orders would be issued once per year, not that each task order must provide for a performance period of 12 months, and even if that were what it meant, the Government satisfied the IDIQ requirement by ordering the guaranteed minimum; and (iii) the Government did not breach the contract by assigning some asset management work to non-REO alternatives because that was specifically contemplated by the contract and was done for the legitimate business purpose of reducing costs rather than avoiding the Government's responsibilities under this contract. 

Terminations 

In ACLR, LLC, a decision labeled as  nonprecedential, the CAFC affirmed the prior CoFC decision denying the contractor's claims for breach of contract, breach of the implied covenant of good faith and fair dealing, and recovery of certain termination-for-convenience damages because: (i) terminations relating to two audits constituted retroactive, constructive terminations for convenience, consistent with the FAR 52.212-4(l) clause incorporated into the task order and, thereby, into the contract; (ii) the contractor presented no evidence in support of its assertion that the Government entered the contract in bad faith with no intention of honoring it; (iii) there was no breach of the implied covenant of good faith and fair dealing because the Government did not expand the contractor's duties beyond those contained in the contract; and (iv) under the T for C, the contractor was not entitled to recover for a contingency fee that was to be based on work that had not progressed to the point that such a fee would have been earned at the time of the termination.

In American Medical Equipment, Inc., Servant Health, LLC, Noble Attorney, LLC, Transcendence, Inc., a decision labeled as nonprecedential, the CAFC affirmed the prior CoFC decisions upholding default terminations of contracts to deliver nitrile examination gloves (PPE) during COVID because: (i) the contractors failed to provide actual evidence of excusable delays; (ii) the contractors failed to provide documentation that the gloves they tendered were acceptable substitutes for the contractually specified items, and the "brand name or equal" solicitation provision only allowed for substitutions in proposals, not after proposals quoting the appropriate gloves had been submitted and accepted; and (iii) the Contracting Officer did not breach the duty of good faith and fair dealing by terminating the contracts for default due to lack of timely delivery since the plaintiffs presented no evidence the terminations were merely pretextual.

Costs/CAS

In

Fraud/Anti-Kickback

 

EAJA

 

 

      

Supreme Court


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