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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