Aerodex, Inc. v. The United States

417 F.2d 1361, 189 Ct. Cl. 344, 1969 U.S. Ct. Cl. LEXIS 84
CourtUnited States Court of Claims
DecidedNovember 14, 1969
Docket346-64
StatusPublished
Cited by16 cases

This text of 417 F.2d 1361 (Aerodex, Inc. v. The United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aerodex, Inc. v. The United States, 417 F.2d 1361, 189 Ct. Cl. 344, 1969 U.S. Ct. Cl. LEXIS 84 (cc 1969).

Opinion

PER CURIAM.

This case was referred to Trial Commissioner C. Murray Bernhardt with directions to prepare and file with the Clerk his opinion and recommendation for conclusions of law on the issues, under the order of reference and Rule 99(c) [since September 1, 1969, Rule 166(c)]. The commissioner has done so in an opinion and report filed on October 15, 1968. On February 18, 1969, defendant filed a request for review asking that the court reject the commissioner’s opinion and recommendation. Plaintiff requested that the court adopt the commissioner’s report in its entirety. The case has been submitted to the court on oral argument of counsel and the briefs of the parties. Since the court is in agreement with the opinion and recommendation of the commissioner, with modifications, it hereby adopts the same, as modified, as the basis for its judgment in this case, as hereinafter set forth. Therefore, plaintiff’s motion for summary judgment is granted and defendant’s cross-motion denied to the extent set forth in the commissioner’s opinion. Judgment is entered for plaintiff on the issue of liability with proceedings here to be suspended for six (6) months, to afford plaintiff an opportunity to obtain determination of the amount of the equitable adjustment through further Board proceedings, pursuant to Rule 167.

Commissioner Bernhardt’s opinion, as modified by the court, is as follows:

This application for review of an Armed Services Board of Contract Appeals decision (Appeal of Aerodex, Inc., ASBCA No. 7121, 1962 BCA ¶ 3492 and, on reconsideration, 1964 BCA 4057) originated in the delay-producing inability of the Government to furnish plaintiff a source of supply or the material specifications for a vital component of a thermistor mount under a bid procurement for a quantity of the latter, and the refusal of the Western Electric Company, as holder of a previous comprehensive research and development contract which included the thermistor mount, either to divulge for plaintiff’s use the material specfieations for the said component in which Western Electric ostensibly claimed proprietary rights, or to sell the component to plaintiff to permit completion of the contract. A second claim relates to delays resulting from the alleged failure of the Government to provide adequate testing data.

The plaintiff’s claim was advanced to the Board under the Changes clause of the contract. It is presented here in alternative counts reading in (1) review of the Board decision under the substantial evidence standards of the. Wunder-lich Act (41 U.S.C. § 321), (2) breach of contract in that the Government failed to list in its purchase description for the troublesome component a commercially available item, or to give plaintiff the material specifications for the compo *1363 nent, or to furnish plaintiff necessary-testing data, and (3) breach of warranty with respect to the matters complained of as breaches of contract in count 2. Despite the fact that the contracting officer had rejected the claim initially on the grounds of lack of timeliness under the Changes clause, and did not address the merits, the Board entertained and disposed of the claim on its merits and rejected the timeliness defense. The court has heretofore refused plaintiff’s request to consider de novo evidence, and the rights of the parties now rest on the contents of the Board record which has been lodged with the court for purposes of review on cross-motions for summary judgment filed pursuant to former Rule 96. We disagree with the Board.

The factual basis of plaintiff’s claims is in two parts, viz:

PART I

Nonavailability of component

On June 14, 1958, plaintiff was awarded a bid contract to supply 233 probe thermistor mounts by the United States Army Ordnance Missile Command at Redstone Arsenal for $61.94 each with delivery in installments from 180 to 240 days after the award. The thermistor mount is a device used to measure radio frequency energy being transmitted by wave' guides in the Nike-Hercules missile system. The electronic nerve center of the thermistor mount is a matched pair of thermal resistors.

Two drawings accompanying the invitation specified that the matched sets of thermal resistors were to be Western Electric Company’s Part No. GA51387, Items IB and 2B, respectively, “or approved substantial equal”. The thermal resistor drawings had been prepared by Bell Telephone Laboratories, Inc., a Western Electric affiliate. The resistors had been manufactured and used by Western Electric in 1956 (and presumably earlier) under a research and development contract which the latter company had been awarded for the comprehensive Nike-Hercules missile system, 1 of which the thermistor mount was a relatively small part.. The record refers to the thermal resistors as the proprietary item of Western Electric, which we take to mean that Western Electric claims that it was developed at the expense of Western Electric as opposed to being a reimbursed product of its research and development contract.

The matched thermal resistors were the only components of the 35. elements comprising the thermistor mount whose material contents were not described in the contract in suit. Instead, their dimensions and performance requirements were given. Thermal resistors per se are generieally a rather common item in the modern electronic industry and consist essentially of electronic beading made of varying materials, to which filaments are attached. Based upon its broad experience with Government contracts, including some involving- more complex components of missile systems, the plaintiff expected to obtain the material specifications for the thermal resistors from the Government and to manufacture them “in-house” at a cost of about $1.43 each, rather than purchase them ready-made. During the bid period it made no inquiries either about their availability from Western Electric or other suppliers, or about the availability of material specifications from the Government.

On or about October 20, 1958, when plaintiff had reached a stage of performance where thermal resistors would be *1364 needed, it discovered upon inquiry not only that the Government lacked — and could not obtain from Western Electric— the material specifications, but also that Western Electric refused to sell the resistors separately. 2 A number of other potential suppliers suggested by the Government were ascertained to be unable to provide resistors of the required performance characteristics. Western Electric offered to accept a subcontract for the entire thermistor mount at a quoted price of $310.41 each, with delivery in not less than 34 weeks, as contrasted with plaintiff’s contract price of $61.94 and delivery in 180 to 240 days. 3 We are not advised whether Western Electric was an unsuccessful bidder against plaintiff for the contract in suit and, if so, what its bid might have been in contrast to plaintiff’s or in contrast to the subcontract price it proffered to plaintiff. The resistors were listed in Western Electric’s catalog as though they were available for public purchase, which was not the case in this instance.

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Bluebook (online)
417 F.2d 1361, 189 Ct. Cl. 344, 1969 U.S. Ct. Cl. LEXIS 84, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aerodex-inc-v-the-united-states-cc-1969.