Atkins North America, Inc. v. United States

106 Fed. Cl. 491, 2012 U.S. Claims LEXIS 1041, 2012 WL 3744665
CourtUnited States Court of Federal Claims
DecidedAugust 30, 2012
DocketNo. 09-112 C
StatusPublished
Cited by3 cases

This text of 106 Fed. Cl. 491 (Atkins North America, 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
Atkins North America, Inc. v. United States, 106 Fed. Cl. 491, 2012 U.S. Claims LEXIS 1041, 2012 WL 3744665 (uscfc 2012).

Opinion

OPINION AND ORDER

SWEENEY, Judge.

In this case, an engineering design firm challenges the government’s claim for damages resulting from a purportedly faulty design. The sole issue presented by the parties’ cross-motions for summary judgment is whether the contracting officer’s decision on the government’s claim is valid. Because the contracting officer exercised independent judgment by becoming familiar with the facts and conclusions contained in the decision and adopting them as her own, the court con-[493]*493eludes that it is. Accordingly, the court grants defendant’s motion.

I. BACKGROUND

On October 5, 1999, the United States Corps of Engineers (“Corps”) awarded an indefinite-delivery architect-engineer contract to Post, Buckley, Schuh & Jemigan, Inc. (“PBS & J”), now known as Atkins North America, Inc. (“Atkins”). App. 1, 30. Under that contract, the Corps issued PBS & J a task order for the preparation of plans and specifications for the Ten Mile Creek Project located in St. Lucie County, Florida. Id. at 2. The project had two components: a storm water runoff area to “reduce the surge of freshwater into the Indian River Lagoon estuary” and a treatment cell to “attenuate the concentration of phosphorus and other nutrients in the runoff water.” Id. at 4. PBS & J retained Law Engineering and Environmental Services, Inc., the predecessor in interest of MACTEC Engineering and Consulting, Inc. (“MACTEC”), to provide it with geotechnical investigation, analysis, and design services for the project. Id. at 29-30. On May 1, 2002, PBS & J delivered its final plans and specifications for the project to the Corps. Id. at 6.

The Corps awarded the construction contract for the project on September 26, 2003, id. at 50, but did not retain PBS & J to provide any services during construction, id. at 2. Construction spanned from November 2003 through January 2006. Id. at 12, 50. The Corps began to fill the storm water reservoir in July 2006, first to an elevation of nineteen feet and then to an elevation of twenty-three feet. Id. at 12. It did not raise the water level to the design elevation of twenty-nine feet. Id. at 13.

On October 22, 2007, the Corps informed PBS & J by letter that it had “identified a potential claim for errors and omissions” related to PBS & J’s work on the Ten Mile Creek Project. Id. at 315. It explained: “We believe a design deficiency may exist related to reservoir embankment seepage and slope stability and the erosion protection provided at the base of the soil cement apron inside the impoundment.” Id. The Corps requested a response from PBS & J within five days explaining PBS & J’s “intended course of action ... to resolve this matter.” Id. PBS & J responded by letter dated October 26, 2007, indicating that it had been working with the Corps to determine the existence of deficiencies “relating to soil stability or seepage” and that its subconsultant MACTEC would be performing additional analysis. Id. at 316.

PBS & J and the Corps continued to exchange correspondence through the beginning of 2008. Id. at 317-35. In a February 22, 2008 letter signed by the contracting officer, Griselle Gonzalez, the Corps notified PBS & J that it intended to “pursue an architect-engineer liability action against [it] related to the services provided” for the Ten Mile Creek Project. Id. at 336-40. The Corps identified seven areas in which it believed that PBS & J was liable for damages: “Seepage Management”; “Soil-cement Apron Stability against Uplift”; “Erosion at the Base of the Soil-cement Apron”; “Erosion of the Downstream Side Slope”; “Erosion at the discharge of the STA into Canal 96”; “Survey Issues”; and “Pump Station 382 Wall Dimensions.” Id. at 336-38. It also provided an estimate of the damages it planned to assess against PBS & J: $15,698,859.66. Id. at 338-40. PBS & J responded to this letter on February 28, 2008. Id. at 341-44.

Ms. Gonzalez issued the contracting officer’s final decision on March 28, 2008. Id. at 47-76. The decision was divided into six sections: “Claims”; “Findings of Fact”; “Computation of Damages”; “The Government’s Right to file a Claim”; “Contracting Officer’s Analysis”; and “Notice of Appeal Rights.” Id. In the first section, “Claims,” Ms. Gonzalez reiterated the seven areas in which the Corps asserted that PBS & J was liable for damages. Id. at 47-49. In the “Findings of Fact” section, she briefly described the history of the relevant contract and task order and then, in more detail, described the correspondence exchanged between PBS & J and the Corps from October 2007 through February 2008. Id. at 49-53. In the “Computation of Damages” section, Ms. Gonzalez summarized the damages incurred by the Corps — $15,698,859.66—and [494]*494then allocated those damages among the seven areas of alleged liability. Id. at 53-69. In the final three sections, she set forth the government’s right to assert a claim against a contractor, explained the basis of her liability findings, and described PBS & J’s right to appeal the decision. Id. at 70-76.

Exercising its right to seek review of the contracting officer’s decision, PBS & J filed a complaint in the United States Court of Federal Claims (“Court of Federal Claims”) on February 23, 2009. Because PBS & J had not yet paid any of the $15,698,859.66 in damages assessed by the Corps, defendant filed a counterclaim based on the contracting officer’s decision. MACTEC joined the suit as a counterdefendant on November 5, 2009.

On October 22, 2009, PBS & J deposed Ms. Gonzalez to ascertain the basis of the contracting officer’s decision that she issued. Id. at 77, 141^2. With respect to her education and experience, Ms. Gonzalez testified that she has a degree in finance and is a licensed, but nonpraeticing, certified public accountant in the state of Georgia. Id. at 81. She further explained that she has held an unlimited warrant as a contracting officer for approximately ten years, and a level three contracting officer certification for at least five or six years. Id. She stated that she is not an engineer or a lawyer, and has no experience in design, geotechnical engineering, slope stability issues, or seepage management. Id. at 84-85.

Ms. Gonzalez then explained the origins of the substantive elements of the contracting officer’s decision. She stated that pursuant to chapter seven of the Corps’ Engineer Pamphlet 715-1-7, an Architect-Engineer Responsibility Management Board, which consisted of the chief counsel, the chief of the contracting division, the chief of engineering, and the chief of construction, reviewed PBS & J’s performance to determine whether PBS & J was liable for any design deficiencies. Id. at 91, 124; see also id. at 347-57 (containing chapter seven of the pamphlet). After its review, the board described its findings and recommendations in a case document. Id. at 146, 173-75; see also id. at 283-307 (containing the case document). The ease document was prepared with input from engineering, estimating, construction, and legal personnel, and was signed by the chief of engineering in February 2008. Id. at 106-09.

Next, Ms.

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106 Fed. Cl. 491, 2012 U.S. Claims LEXIS 1041, 2012 WL 3744665, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atkins-north-america-inc-v-united-states-uscfc-2012.