Anchorage, a Municipal Corporation v. United States

119 Fed. Cl. 709, 2015 U.S. Claims LEXIS 17, 2015 WL 273206
CourtUnited States Court of Federal Claims
DecidedJanuary 22, 2015
Docket14-166C
StatusPublished
Cited by6 cases

This text of 119 Fed. Cl. 709 (Anchorage, a Municipal Corporation 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
Anchorage, a Municipal Corporation v. United States, 119 Fed. Cl. 709, 2015 U.S. Claims LEXIS 17, 2015 WL 273206 (uscfc 2015).

Opinion

*710 Motion to Dismiss, Cooperative Agreement

OPINION AND ORDER

DAMICH, Senior Judge

This case arises from a contract dispute between the Plaintiff, Anchorage, A Municipal Corporation (“Anchorage” or “MOA”) and the United States (the “Government”), acting through the Department of Transportation, Maritime Administration, (“MarAd”). The lawsuit concerns losses from a project jointly administered by Anchorage and Mar-Ad to expand the Port of Anchorage in Anchorage, Alaska (“the Project”). During the course of construction, widespread damage was discovered in the Project, rendering parts of the Port unsuitable for use.

Defendant filed a Motion to Dismiss the Complaint pursuant to RCFC 12(b)(1) and 12(b)(6). The Government alleges the Complaint should be dismissed because (1) the Court does not possess jurisdiction under the Tucker Act because the agreements relating to the project between MarAd and Anchorage are not money mandating, (2) the Complaint fails to state a claim for breach of contract or a breach of the implied covenant of good faith and fair dealing because the agreements place responsibility on Anchorage but not on the United States for the alleged breaches, and (3) the Complaint fails to state a claim as a third-party beneficiary of the contract between the Government and the construction contractor because Anchorage does not allege that the Government breached that contract.

For the reasons set forth below, the Court hereby denies-in-part with respect to counts one and two, and grants-in-part with respect to count three, the Defendant’s Motion to Dismiss.

I. BACKGROUND

The Municipality of Anchorage determined that the facilities at the Port of Anchorage were deteriorating and outdated. Complaint (“Compl.”) at ¶ 10. Anchorage envisioned the Project as a multi-year endeavor that would help increase the Port’s ability to serve Anchorage, the State of Alaska, commercial tenants, and the United States military. Id. Not having the expertise to undertake the Project on its own, MOA sought a party to provide the requisite technical expertise. Id. at ¶ 12. After considering the private sector, MOA decided to contract with the Department of Transportation, Maritime Administration (“MarAd”) as part of an agency-wide initiative to embark on a port infrastructure development program. Id. at ¶ 13.

MOA and MarAd executed two contracts regarding the Project. Appendix to the Defendant’s Motion to Dismiss (“DA”) at 1, 7. The first contract was executed in 2003 (“the 2003 Agreement”) and described project administration, funding, and the obligations of the parties. DA 1-6. Following the discovery of defects in the sheet pile system in 2010, MarAd revised its agreement with MOA to increase MarAd’s oversight over the Project. Compl. at ¶¶ 66-69, 92; DA at 23. The second contract was entered into in 2011 *711 (“the 2011 Agreement”) and superseded -the 2003 Agreement. DA at 7,13-14. The 2011 Agreement expired on May 31, 2012. Id.

The express terms of the 2003 Agreement required MOA to “[p]rovide overall program requirements and direction of Port Expansion to MarAd.” DA at 1. The Agreement also specified, in regard to the level of program control to be exerted by MOA, that MOA had the responsibility to “[r]eview all plans, specifications, and status reports submitted by the primary contractor and its subcontractors before submission to Mar-Ad —” DA at 2. MOA was also responsible for certifying completion and acceptance of the work. DA at 6. MOA had to accept work from the contractor and certify that the work was acceptable before a certificate of completion could be submitted to MarAd for MarAd to accept the work from the contractor. DA at 6.

The 2003 Agreement outlined MarAd’s responsibilities as primarily financial in nature, because MarAd had the responsibility to “[coordinate with other Federal Agencies that receive annual Congressional appropriations for Port Expansion.” DA at 2. MarAd was also responsible for executing all financial documents, accepting transfers of non-Federal funds, and was to “[o]bligate and disburse funding for Port Expansion oversight, program management, study, environmental analysis, engineering, design, construction, or rehabilitation pursuant to Port Expansion requirements consistent with contract requirements.” DA at 3. The parties agreed not to shift liability to the other, and they agreed that the 2003 Agreement “does not obligate either party to spend funds not specifically appropriated or allocated for actions described herein.” Id.

Problems with the Project were discovered upon inspection in 2010, when large-scale damage was found in the installed sheet piles. Compl. at ¶ 66-68. The damage resulted in large sections of the Project being unsuitable for use. Id. at ¶ 80. This was the impetus for the parties entering into a second agreement in 2011.

The 2011 Agreement redefined the roles and responsibilities of Anchorage and Mar-Ad, outlined authorities, and assured accountability for the Project. DA at 7. It created a Port Oversight and Management Organization (“POMO”) to “provide overall executive leadership, vision, policy, strategic objectives, and priorities for the project.” DA at 8. The 2011 Agreement deleted Anchorage’s responsibility to provide program requirements and direction for the Project and instead gave POMO the responsibility to “[mjanage the scope, schedule, and budget of the Project on a day-to-day basis.” DA at 8. The Agreement outlined the objectives, project oversight and management organization, the responsibilities of the parties, the shared responsibilities of both parties, general provisions, the term of the agreement, and provisions regarding the termination and amendment of the agreement. DA at 7-13. The Agreement also recognized that MarAd would designate the United States Army Corps of Engineers (“USACE”) to serve as a design and construction agent for the Project and perform an independent technical evaluation of the sheet pile system. DA at 7; Compl. at ¶ 78. The Agreement further expanded MarAd’s responsibilities by providing that MarAd or its designee would “provide acquisition, construction, design, and quality assurance service for the Project_” DA at 12. The 2011 Agreement remained in effect until its expiration on May 31, 2012. DA at 13. It was the last written agreement in effect between MarAd and Anchorage relating to the Project.

In the meantime, to aid in the construction of the Project, MarAd entered into a contract with Integrated Concepts and Research Corporation (“ICRC”) in 2003 to “among other things, provide program management, design-build and related procurement services with respect to the Project’s management, design and construction.” Compl. at ¶33. ICRC in turn entered into subcontracting agreements with PND Engineers, Inc. (“PND”) and Quality Asphalt Paving (“QAP”). Id. at ¶¶ 42-47. QAP then entered into a contract with MKB Constructors (“MKB”). In 2008, MarAd and ICRC again executed a contract “to continue performance of design-build and Project management related services for the Project.” Id. at ¶ 37. As a result of MarAd denying ICRC’s certi *712

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
119 Fed. Cl. 709, 2015 U.S. Claims LEXIS 17, 2015 WL 273206, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anchorage-a-municipal-corporation-v-united-states-uscfc-2015.