Avant Assessment, LLC

CourtArmed Services Board of Contract Appeals
DecidedAugust 21, 2017
DocketASBCA No. 58903, 60143, 60144, 60619
StatusPublished

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Bluebook
Avant Assessment, LLC, (asbca 2017).

Opinion

ARMED SERVICES BOARD OF CONTRACT APPEALS

Appeals of -- ) ) Avant Assessment, LLC ) ASBCA Nos. 58903, 60143 ) 60144,60619 ) Under Contract Nos. W9124N-11-C-0015 ) W9124N-11-C-0033 ) W9124N-11-C-0040 )

APPEARANCES FOR THE APPELLANT: Dirk D. Haire, Esq. Alexa Santora, Esq. Sean Milani-nia, Esq. Rachel M. Severance, Esq. Fox Rothschild LLP Washington, DC

APPEARANCES FOR THE GOVERNMENT: Raymond M. Saunders, Esq. Army Chief Trial Attorney CPT Harry M. Parent III, JA MAJ Julie A. Glascott, JA Trial Attorneys

OPINION BY ADMINISTRATIVE JUDGE MCILMAIL

These four appeals, concerning the three contracts referenced above for the development and delivery of foreign-language test items to the Defense Language Institute (DLI) (contracts 15, 33, and 40) were consolidated for hearing. Appellant, Avant Assessment, LLC (Avant), appeals from the government's termination of contract 15, and from its denial of claims that Avant submitted under all three contracts. The appeals are governed by the Contract Disputes Act (CDA), 41 U.S.C. §§ 7101-7109.

FINDINGS OF FACT

I. Contract No. W9124N-l l-C-0015

On 6 June 2011, appellant, Avant and the Army (government) entered into contract 15 for the development and delivery of 4,620 foreign-language test items to DLI (ASBCA No. 58903 (58903) R4, tab 1 at 2, 4, 8). In bidding for contract 15, Avant built into its bid price the expectation that the government would reject 30 percent of its test items (tr. 117, 2/15). Contract 15 incorporates by reference Federal Acquisition Regulation (FAR) 52.212-4, CONTRACT TERMS AND CONDITIONS-COMMERCIAL ITEMS (JUN 20 I 0), which provides, at paragraph 1 (in part):

Termination/or the Government's convenience. The Government reserves the right to terminate this contract, or any part hereof, for its sole convenience .... Subject to the terms of this contract, the Contractor shall be paid a percentage of the contract price reflecting the percentage of the work performed prior to the notice of termination, plus reasonable charges the Contractor can demonstrate to the satisfaction of the Government using its standard record keeping system, have resulted from the termination.

(58903 R4, tab I at 32) Section C.6.1.1 of contract 15's performance work statement, item development, provides that, for the languages covered by the contract, Avant "develop acceptable passages and items" (id. at 7).

The performance work statement also provides the following:

C.6.1.2. Estimated Rejection Rate of Submitted Items It is probable that not all submitted items will be accepted. Historically, an estimated rejection rate for items is 30% of submitted items. Therefore, in order to produce 4,620 usable items, the Contractor typically needs to overproduce by 30% or approximately 6,000 items in order to net 4,620 items. The government will only pay for 4,620 usable/approved items.

(58903 R4, tab 1 at 8)

The government accepted 4,437 of the 7,262 test items that Avant delivered (some delivered more than once), rejecting 2,825 (see 58903, 60144 answer at 14, ~ 32). On 31 October and 1November2012, the parties entered into Modification No. P00006, which "extend[ed] the contract at no-cost for three months (through 31January2013)" (58903 R4, tab 7 at 1). The modification states that "[b]oth parties will continue to work towards developing an agreeable arrangement regarding the submission of the outstanding test items during the extension" (id.).

2 Subsequently, the parties agreed to a new delivery schedule through May 2013 (ASBCA No. 60144 (60144) compl. at 6, ~ 24; 58903 R4, tab 117 at 6). 1 On 6 September 2013, the government terminated contract 15 for cause because, it said, Avant "did not meet the delivery schedule" (58903 R4, tab 9 at 1-2). Avant timely appealed the termination on 23 September 2013; we docketed the appeal as ASBCA No. 58903.

On 27 November 2013, Avant submitted a certified claim to the contracting officer, requesting $1,203,812.91 for alleged constructive changes to contract 15 (58903 R4, tab 117 at 1, 29). On 29 June 2015, the contracting officer issued a final decision denying that claim (58903 R4, tab 121). 2 Avant timely appealed that decision on 27 August 2015; we docketed that appeal as ASBCA No. 60144.

II. Contract No. W9124N-ll-C-0033

On 16 September 2011, Avant and the government entered into contract 33 for the development and delivery of 1,300 foreign-language test items to DLI (ASBCA No. 58866 (58866) R4, tab I at 1-8). Contract 33 includes FAR 52.212-4(1) (id. at 28, 32). Section C.5.2.1 of contract 33's performance work statement provides that, for the languages covered by the contract, Avant "provide acceptable reading passages and items" (id. at I 0). Section C.3 provides that "(DLI Foreign Language Center (DLIFLC)] will provide the following documents," including a "Technical Exhibit #13" entitled "Review Criteria" (id. at 9). The performance work statement also provides the following:

1 In its response brief, Avant states that "the Government never modified contract 15 after 3 I October 2012 to bind Avant to a new delivery schedule," and represents in a table that purports to depict Avant's delivery responsibilities that "O" items were due after October 2012 (app. resp. at 10-11 & n.3). However, in its complaint, Avant alleged that "[t]he parties agreed to a new delivery schedule through May 2013" (60144 compl. at 6, ~ 24), and a party's pleading in one case is admissible as a nonbinding evidentiary admission of the party in another case. Shell Oil Co. v. United States, 130 Fed. Cl. 8, 80 (2017) (citing FED. R. EVID. 80l(d)(2)). Avant also stated in a 27 November 2013 claim under contract 15 to the contracting officer that "the parties agreed to a delivery schedule for the production of additional Test Items through May 2013," and that "[p]ursuant to the agreed schedule, Avant delivered an additional 480 Test Items between January 31, 2013, and May 6, 2013" (58903 R4, tab 117 at 6). In view of the foregoing, we find that sometime after 1 November 2012, the parties agreed to a schedule for the delivery of items through May 2013. 2 The contracting officer's final decision erroneously states that the claim amount was $4,203,812.91 (58903, 60144 R4, tab 121).

3 C.5.2.2. The Contractor is required to provide high quality passages and items that adhere to the specifications and criteria defined by the government in the technical exhibit documents and during the orientation session.

C.5.2.2.1. The Government will review all passages and items submitted by the Contractor. Those that do not meet standards will be rejected. It is expected that a certain proportion of passages and/or items submitted by the Contractor will be rejected during the review process. Historically, rejection rates have varied considerably from contract to contract and throughout the period of performance of any given contract.

C.5.2.2.2. DLIFLC will work closely with the Contractor to improve the quality of items (including extensive discussion sessions focusing on specific items), but it is likely that successful completion of the contract will entail the initial development of more items than listed in the above charts, to account for loss during review.

C.6.10.1. See Technical Exhibit #2 for a detailed schedule. The delivery schedule is based on a historical rejection rate of 45%. At any time, the Government reserves the right to modify the delivery schedule due to higher or lower rejection rates.

(Id. at 11, 14)

In bidding for contract 33, Avant built into its bid price the expectation that the government would reject "[a]round 30 percent" of its test items (tr. 2115).

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