Abcon Associates, Inc. v. United States

44 Fed. Cl. 625, 1999 U.S. Claims LEXIS 222, 1999 WL 729129
CourtUnited States Court of Federal Claims
DecidedSeptember 20, 1999
DocketNo. 98-574C
StatusPublished
Cited by7 cases

This text of 44 Fed. Cl. 625 (Abcon Associates, Inc. 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
Abcon Associates, Inc. v. United States, 44 Fed. Cl. 625, 1999 U.S. Claims LEXIS 222, 1999 WL 729129 (uscfc 1999).

Opinion

OPINION

MILLER, Judge.

This matter is before the court on the parties’ cross-motions for summary judgment on Counts III and IV of the complaint.1 The decisive issue is whether the Government waived the delivery schedule under the contract and, therefore, wrongfully terminated the contractor without affording an opportunity to cure. Argument is deemed unnecessary.

FACTS

The facts in this case are undisputed, unless otherwise noted. On April 29, 1996, the United States Postal Service (the “USPS”) awarded Abcon Associates, Inc. (“plaintiff’), Contract No. 415046-96-B-0050 for the extension of the loading dock and the installation of three freight elevators at the USPS Queens Processing and Distribution Center located in Flushing, New York. Under the terms of the contract, plaintiff was to commence performance within ten days of receipt of the Notice to Proceed and to complete performance within 510 days. Work under the contract was divided into two phases, each with its own completion deadline. Phase 1 was further divided into Phases la and lb. Phase la was to commence immediately and be completed by April 1, 1997. Phase lb was to commence immediately and be completed by December 1,1996. Phase 2 was to commence on April 1, 1997, and be completed by October 1,1997.

Plaintiff received the Notice To Proceed on May 1, 1996. The Notice To Proceed identified September 23, 1997, as the completion date for all work. Plaintiff commenced performance of Phase 1 in May 1996. Shortly thereafter, plaintiff discovered discrepancies between the project drawings and the actual conditions in the USPS facility.

In the Phase la interior work, plaintiff discovered that the section of concrete flooring to be removed according to the USPS plans was too small for the foundation work that was to be performed in and around the elevator pit. Plaintiff orally requested that the contracting officer and the architect engineer resolve the design discrepancy. Plaintiff sent three Requests for Information (“RFIs”) regarding other concrete and steel work in the elevator foundation area to the contracting officer’s representative and the architect engineer. The RFIs were numbered 5, 13, and 23 and were dated September 12, September 26, and October 3, 1996, respectively. The USPS requested that plaintiff provide its own shop drawings to remedy the elevator foundation problems.

On November 15,1996, plaintiff discovered differences between the USPS drawings and the actual condition of the Phase 1 exterior asphalt work. New pavement could not be laid without the gradient exceeding the 5% slope limitation in the USPS plans. Plaintiff notified the architect engineer of this problem by telephone on November 15,1996. Six days later, plaintiff submitted RFI No. 038 addressing the gradient problem. Plaintiff then submitted RFI No. 042 for a problem with the transition gradient from the old asphalt to the new asphalt.

The Phase lb completion deadline passed without delivery of the finished product. By its December 17, 1996 letter, the contracting [627]*627officer’s representative informed plaintiff that it was in default and that the USPS could terminate the contract if plaintiff were not to cure the default. During the same month, the USPS began withholding the liquidated damages stipulated in the contract.

The USPS provided its own design plans for the Phase la difficulties on January 23, 1997. The USPS informed plaintiff that it was to implement the solution with no addition cost to the USPS and with no extension of time.

The contracting officer notified plaintiff by a February 5,1997 letter that the USPS was “considering terminating” the contract. This letter indicated that the default was based on a failure “to submit an acceptable project schedule.” It provided for a February 14, 1997 meeting at which plaintiff could present its position on the issue of the Phase lb default.

At the February 14, 1997 meeting, Contracting Officer David Weglinski indicated that some of the performance problems were not entirely plaintiffs fault. He stated that the parties should work toward a joint solution. During private discussions after the meeting, the contracting officer indicated to plaintiff that he wanted to find a mutually satisfactory resolution that would assure completion of the project.

Plaintiff sent a letter dated March 3, 1997, to the contracting officer as a response to the February 5, 1997 show-cause letter. Mr. Weglinski considered this response unnecessary because he “was satisfied with, the presentations that there was a rationale, a justification why [plaintiff was] unable to meet the completion date.” Deposition of David Weglinski, Oct. 20, 1998, at 32. No further communications regarding the show-cause letter occurred until December 31, 1997, more than nine months later.

The Phase la deadline of April 1, 1997, passed without completion. Phase 2 was not commenced on April 1, 1997, as required by the contract. On April 23, 1997, the parties met to discuss unresolved issues. At this meeting plaintiff offered a new schedule that included completion of Phase 1 within four months of the meeting and of Phase 2 within three months thereafter, yielding proposed deadlines of August 23, 1997, and November 23,1997, respectively. According to the minutes of the meeting, the contracting officer “concurred” with the proposed deadlines.

The scope of this concurrence is disputed by the parties. Plaintiff contends that the contracting officer’s concurrence indicates a modification of the work schedule. The USPS counters that the concurrence was not a modification of the contract, but merely an effort to ascertain fixed dates by which the USPS would be able to use the freight elevators and the renovated loading dock. At no time prior to the December 31, 1997 termination for default did the USPS change any completion dates by contract modification.

In May and June 1997, plaintiff received design solutions for the outstanding problems. Plaintiff continued to perform while liquidated damages mounted.

By August 5, 1997, plaintiff submitted Modification Requests 2 through 20 by which plaintiff sought additional compensation and time to complete the contract. Plaintiff based the Modification Requests on what it perceived to be design defects, differing site conditions, or USPS-direeted changes. The parties met at least twice during August to discuss potential contract modifications arid settlement of plaintiffs claims for money.

At the August 14, 1997 meeting, plaintiff represented that it would not be able to complete phase 2 by December 12, 1997.2 According to the minutes of this meeting, a USPS representative inquired of plaintiff how its “schedule [would] be effected if the USPS asked [plaintiff] to begin construction of Phase 2 in January 1998.” The meeting generated no resolution of the 19 Modification Requests.

In late August 1997, the USPS authorized the release of a portion of the liquidated damages that it had retained. The authori[628]*628zation was made despite the fact that plaintiff continued to represent that it could not prepare an accurate construction schedule and that phase 1 was incomplete. Plaintiffs proposed Phase 1 deadline of August 23, 1997, passed without completion. The contract deadline for Phase 2 passed on October 1, 1997, without delivery.

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Cite This Page — Counsel Stack

Bluebook (online)
44 Fed. Cl. 625, 1999 U.S. Claims LEXIS 222, 1999 WL 729129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abcon-associates-inc-v-united-states-uscfc-1999.