Abatement Contracting Corp. v. United States

58 Fed. Cl. 594, 2003 U.S. Claims LEXIS 356, 2003 WL 22871788
CourtUnited States Court of Federal Claims
DecidedNovember 26, 2003
DocketNo. 97-770 C
StatusPublished
Cited by7 cases

This text of 58 Fed. Cl. 594 (Abatement Contracting Corp. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abatement Contracting Corp. v. United States, 58 Fed. Cl. 594, 2003 U.S. Claims LEXIS 356, 2003 WL 22871788 (uscfc 2003).

Opinion

OPINION

ME ROW, Senior Judge.

On June 11, 1993, the United States Naval Academy solicited bids for a “Requirements Contract for Asbestos Removal and Insulation Installation, U.S. Naval Academy and U.S. Naval Station, Annapolis, Maryland” with an estimated cost of between $500,000.00 and $1,000,000.00. PLApp. 001, 003-009. By Amendment/Modification No. 0001 dated June 14,1993, the Solicitation was amended from a requirements to an indefinite quantity contract. PLApp. 010-014. The indefinite quantity contract (“Contract”) made it clear that it was not a fixed-price contract, that there were no guarantees as to the amount of work, and that delivery orders would determine the amount of work:

CONTRACT TYPE: This is an indefinite quantity contract with no fixed contract price. The actual amount of work to be performed ... will [be] determined by the Officer in Charge of Construction or his properly authorized representative, who will issue written delivery orders to the contractor. The entire work authorized under this contract is that which is performed upon issuance of a delivery order. The unit price cited by the contractor on the Schedule of Prices will be the basis for payment of such work authorization. The Government makes no representation as to [596]*596the number of delivery orders or actual amount of services which will in fact be requested.

Pl.App. 012, ¶ 1.5.

Attached to the Solicitation was a Schedule itemizing supplies and services to be provided by subline item number, estimated quantity, unit price, and total price for the estimated quantity.1

Referencing FAR § 52.216-22 INDEFINITE QUANTITY (Apr.1984),2 the Contract again advised that it was an indefinite quantity contract and “[t]he quantities of supplies and services specified in the Schedule are estimates only and are not purchased by this contract.” Id., 11.5.1(a). The government was only obligated to purchase the Contract minimum:

Delivery or performance shall be made only as authorized by orders issued in accordance with the Ordering clause. The Contractor shall furnish to the Government, when and if ordered, the supplies or services specified in the Schedule up to and including the quantity designated in the Schedule as the “maximum.” The Government shall order at least the quantity of supplies or services designated in the Schedule as the “minimum.”

PLApp. 012,¶ 1.5.1(b).

Initially, the Contract minimum was $3,000.00. PLApp. 013, ¶ 1.5.2. Through Amendment/Modification 'No. 0002, dated July 2, 1993, the minimum was raised to $50,000.00.3 Pl.App. 015-016. J. Kevin DeVaughn, plaintiffs president, was aware of the $50,000.00 Contract minimum. Def.App. 192 (DeVaughn dep.), p. 86, ll. 4-12; Def. Statement of Proposed Findings No. 7 and Pl. Response.

If the government failed to order the Contract minimum it could terminate the Contract for convenience.

MINIMUM AND MAXIMUM QUANTITIES (NAVFACXDEC 1991) As referred to in paragraph (b) of the Indefinite Quantity clause of Section 01010, the contract minimum quantity is a total of $3,000. Should the Government fail to place orders totalling the amount of the contract minimum quantity, the provisions of [sic] clause entitled, “Termination for Convenience of the Government” shall apply to the unordered amount of the contract minimum quantity. The maximum quantity shall not be exceeded except as may be provided for by formal modification to the contract.

PLApp. 013, ¶ 1.5.2.

Under Paragraph 3.13, the estimated total quantity was the sum of the total estimates for the Scheduled items. “The estimated total quantity is the maximum limit of the contractor’s obligation to deliver and the Government’s obligation to order.” PLApp. 009.

On or about October 22, 1993, the Navy accepted plaintiffs bid of $817,451.83.4 Pl.App. 002, 019. Plaintiff was requested to provide a performance bond in the penal sum of $817,451.83 and a payment bond in the amount of $408,725.92. Pl.App. 019.

The subject dispute involves a relatively small part of the Contract.5 At issue is subline item 001GGD, “[ejncapsulate loose asbestos dust, debris or waste with or without scaffolding.” Estimated quantity was 37 [597]*597square feet. Plaintiffs bid was $5.00 a square foot for a total price of $185.00.

Item No. Supplies/Services Unit Est Qty Unit Price Total Price of Est Q,ty
001GGD Encapsulate loose asbestos dust, debris or waste with or without scaffolding S.F. 37 5 185

Pl.App. 020. The government’s estimate for this subline item was $3.75 per square foot for a total price of $139.00. Pl.App. 036.

As provided under the Contract, quantities of supplies or services were ordered by the Navy’s issuance of delivery orders. Pl.App. 012, ¶1.5.1(b)(referencing FAR § 52.216-22)(“Delivery or performance shall be made only as authorized by orders issued in accordance with the Ordering clause.”); PLApp. 013, ¶ 1.6.1(a)(referencing FAR § 52.216-18)(“Any supplies and services to be furnished under this contract shall be ordered by issuance of delivery orders by the individuals or activities designated in the Schedule.”). In the event of a conflict between a delivery order and the Contract, the Contract prevailed. PLApp. 013,¶ 1.6.1(b)(refer-encing FAR § 52.216-18). Delivery Order No. 0003, dated Dec. 23, 1993, totaling $12,706.39 and the first to include subline item 001GGD, requested 64 square feet of encapsulation (“encapsulate loose asbestos waste on block wall”) at $5.00 per square foot for a total of $320.00. Pl.App. 105-07. With this delivery order the original estimation of 37 square feet was exceeded. In performing the subline item 001GGD work for Delivery Order No. 0003, plaintiff encapsulized loose asbestos dust, debris or waste by application of a water-based vinyl acrylic product applied by airless sprayer.6 Pl. Statement of Proposed Findings, DeVaughn Aff., ¶ 8.7 On February 4, 1994, plaintiff requested a change order of $4,555.00 which included $1,120.00 for encapsulating three walls totaling 224 square feet (at $5.00 a square foot). Plaintiff noted that “this seems to be a lot in relation to the original amount ...” PLApp. 134-35. The request was approved on April 20,1994 in Amendment/Modiflcation 0003-03, increasing Delivery Order No. 0003 to $17,261.39. PLApp. 136-37. Neither the request for a change order nor the Amendment/Modiflcation used the subline item 001GGD. The Amendment/Modiflcation included the following release, language repeated in subsequent transactions:

The foregoing is agreed to as constituting full and complete equitable adjustment and compensation attributable to the facts or circumstances giving rise to this change including but not limited to, any changes, differing site conditions, suspensions, delays, rescheduling, acceleration, impact or other causes as may be associated therewith.

Pl.App. 137 (“Release Language”).

A dispute over the square footage charge for subline item 001GGD arose. Plaintiff alleges it learned on December 22, 1993 that a subsequent Delivery Order was going to omit subline item 001GGD despite the necessity under state and federal regulations to encapsulate the work area.

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Cite This Page — Counsel Stack

Bluebook (online)
58 Fed. Cl. 594, 2003 U.S. Claims LEXIS 356, 2003 WL 22871788, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abatement-contracting-corp-v-united-states-uscfc-2003.