American Renovation & Construction Co. v. United States

45 Fed. Cl. 44, 1999 U.S. Claims LEXIS 223, 1999 WL 744432
CourtUnited States Court of Federal Claims
DecidedSeptember 22, 1999
DocketNo. 96-571C
StatusPublished
Cited by4 cases

This text of 45 Fed. Cl. 44 (American Renovation & Construction Co. 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
American Renovation & Construction Co. v. United States, 45 Fed. Cl. 44, 1999 U.S. Claims LEXIS 223, 1999 WL 744432 (uscfc 1999).

Opinion

OPINION

BASKIR, Judge.

Summary

This case involves the claim of the American Renovation & Construction Company, Inc., (ARC) for Eichleay damages stemming from the 16 months’ delay in performing a contract for roof repair at the Naval Air Station in Jacksonville, Florida (NAS JAX). ARC claims the specifications for the new roof were proprietary and that the Navy improperly refused to accept its substitute submittals. The matter is before the Court on the government’s motion for summary judgment.

Even assuming that the specifications were proprietary and that the Navy breached some duty to ARC, which we doubt, in any event ARC has not shown injury. We therefore find for the government.

Discussion

Proprietary Specifications

According to the Federal Acquisition Regulations (FARs) and case law, a “proprietary specification” is one identified by brand name, or by details that describe a particular brand name product. FAR 6.302(b)(1)(ii). In ordinary government procurement, that means a product made by only one manufacturer. Government policy discourages use of proprietary specifications because by definition it inhibits competition. 10 U.S.C. § 2304 and 41 U.S.C. § 253. In order to include a proprietary specification in an RFP, the contracting agency must provide a justification and obtain approval (so-called “J and A”) from higher authority. FAR 6.302-1(c). The use of an unapproved proprietary specification can be offset if the contracting agency permits the contractor to use an equivalent product, referred to as an “or equal” product. Here the parties dispute whether the specifications were proprietary, and whether the alternatives offered by ARC were “or equal.”

The Roof Specifications

The case has its origins in 1992 when Navy authorities decided it was time to renovate three warehouses at NAS JAX—designated Buildings 162, 163 and 164. It commissioned Mr. John Parks 111, an independent architect/engineer, to write the specifications for the roof repairs on Building 163, leaving the other two for later. Mr. Parks relied on guide specifications, research and his own preferences and experience. As Mr. Parks testified, he also relied on data from a particular manufacturer, Siplast, Inc. (Siplast):

Q. Do you recall what proprietary names you used?
A. Siplast and M.B. Technology and possibly Suprema.
Q. And you used that in the specification? A. Yes.

For the roof material, he called for an “aluminum foil faced modified bitumen styrene butadiene (SBS) cap sheet.”

In June 1992, Mr. Parks informed the Navy that two manufacturers could provide the roofing material, Siplast and M.B. Technology. On the basis of Mr. Parks’ letter, the Navy apparently decided—wrongly—that the specifications were not proprietary because there was more than one available supplier. We say wrongly because all the participants and counsel in this matter have [47]*47overlooked FAR 6.302(b)(1)(ii) which states that a specification is proprietary for the Department of Defense if it is only available from “a limited number of suppliers.” Two is undoubtedly a limited number of suppliers.

In April of 1993, a protest by Eagle Supply, Inc. (Eagle), to the NAS JAX project manager alerted Mr. Parks that the specifications might nonetheless be proprietary (under the one-source rule), and so he inquired of the three manufacturers known to produce the SBS material—Soprema, M.B. Technology and Siplast. Soprema said it was not in the U.S. market. M.B. Technology said that the tests referred to in the specifications were Siplast tests and could be interpreted as proprietary. Indeed, Siplast subsequently informed the Navy that Veral, a Siplast product, was the only membrane that carried the required fire rating. We cannot tell on what basis Eagle’s protest was rejected, but the three responses compel the conclusion that the specifications were arguably proprietary under the one-source rule. Under the Department of Defense test, with only Siplast and M.B. Technology available as suppliers, the specifications were clearly proprietary.

Despite the comments from Soprema, M.B. Technology and Siplast, there was no J and A. The contract was bid and R.F. Lusa & Sons Sheetmetal, Inc. (“LUSA”) won, using Siplast as its supplier. Mr. Parks subsequently grew impatient with the unanticipated time and expense involved in his work for the Navy. Mr. Stephen Zavoyski, a Navy civilian architect at the Navy Public Works Center, replaced him, taking responsibility for Buildings 162 and 164, as well as Building 163. However, we shall hear more from Mr. Parks.

In May 1994, the State of Florida Historical Society (SHS) intervened. They considered the World War II-era warehouses worthy of preservation and wished the finished appearance of the roofs to be bronze. Mr. Zavoyski then asked Siplast for suggestions on how to color the aluminum roof. Siplast made two suggestions, Mr. Zavoyski chose one, and the SHS was satisfied. The specifications for the roof on Building 163 now called for SBS “with factory applied fluorocarbon color coating on continuous aluminum sheeting.” This raised the costs and LUSA asked for an additional $100,000. The NAS got permission to expend the higher amount.

If the uncolored aluminum SBS roof raised the question of whether the specifications were proprietary, the Siplast-suggested coloring process certainly did even more. The Navy recognized this issue, but never followed up. As the minutes from a Navy meeting on June 8, 1994, state:

NPWC would contact Siplast to get material specs, samples, and verify that the Veral Spectra Series Medium Bronze was not a proprietary roofing material and that other manufacturers could meet the specification. If the roofing material is proprietary then another meeting would be required with the attendees and the proposed design schedule noted below would be in jeopardy.

No follow-up inquiry was made and no follow-up meeting was held. Instead, Mr. Zavoyski wrote the specifications for Buildings 162 and 164 using a diskette supplied by Siplast and relying on the approved specifications for Building 163.

Mr. Parks was offended at the meddling of the historical preservationists and he was not shy about telling the Navy, Siplast and his Member of Congress about it. He protested that SHS had interfered with his work and run up the costs of the roof renovation. He protested loudly, among other things claiming that with the Siplast-applied coloring there was no question the specifications now were proprietary, even under the one-source definition. The Navy, however, still took no further action on the issue.

One can hardly avoid concluding that the specifications were proprietary for Siplast alone, and the Navy know or should have known this. Indeed, when an inquiry was eventually made, it was discovered that no one in the United States, not even Siplast, could provide a made in U.S. factory-fused fluorocarbon bronze coloring to the aluminum/SBS roof, as strictly required by the contract. Siplast’s factory coloring was done in France, not the United States.

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Cite This Page — Counsel Stack

Bluebook (online)
45 Fed. Cl. 44, 1999 U.S. Claims LEXIS 223, 1999 WL 744432, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-renovation-construction-co-v-united-states-uscfc-1999.