B.L. Harbert International, LLC v. United States

United States Court of Federal Claims·Decided March 26, 2025·No. 22-712·Published

Opinion

In the United States Court of Federal Claims

B.L. HARBERT INTERNATIONAL, LLC,

Plaintiff,

No. 22-712C

v.

(Filed March 26, 2025)

THE UNITED STATES,

Defendant.

Matthew W. Willis, Ashley & Arnold, Dyersburg, TN, for plaintiff.

Christopher A. Berridge, Civil Division, United States Department of Justice, Washington, DC, for defendant.

OPINION AND ORDER

Granting the Government’s Motion for Judgment on the Pleadings and Denying B.L. Harbert’s Motion to Amend its Complaint

SILFEN, Judge.

The United States Army Corps of Engineers solicited offers to replace a taxiway at Joint Base Andrews in Maryland. The Corps awarded B.L. Harbert the contract. Harbert subcontracted out some of the work. It had subcontractors do the undercutting (that is, removing soil and rock and then replacing it to allow for pavement) and paving. The parties modified the contract a few times to address additional undercutting, adding to Harbert’s compensation for that work. Harbert later sought more compensation based on the additional undercutting work and delays the work caused. The contracting officer denied Harbert’s requests, and Harbert sued in this court under the Contract Disputes Act, 41 U.S.C. § 7104.

The government moves for judgment on the pleadings. Harbert opposes and requests that, if the court finds the complaint insufficient, the court permit Harbert to amend its complaint.

Harbert was compensated for the additional work that it performed, which was work the Corps requested. In each contract modification, Harbert waived its right to seek additional com- pensation beyond what the parties agreed to. Harbert does not provide any additional facts that could cure those deficiencies in its complaint. This court will therefore grant the government’s motion for judgment on the pleadings and deny Harbert’s motion to amend its complaint because the proposed amendment would be futile. I. Background In 2016, the Corps issued a solicitation for a multiple-award task-order contract for con-

struction services. ECF No. 21-1 at 59-62. In other words, multiple contractors would be admitted under the contract, and they could later bid on task orders for specific projects. In early 2017, the Corps notified Harbert that it was one of the contract awardees. Id. at 61. The Corps then asked its awardees for task order proposals to repair and replace a taxiway at Joint Base Andrews. Id. at 96- 97. Harbert bid, and the Corps awarded it the taxiway contract. Id. at 207. The first phase of the taxiway contract—the only phase relevant to this case—included removing and replacing soil and rock below the taxiway, known as undercutting, and then repaving the taxiway. Id at 124.

Harbert subcontracted the undercutting work to Allen Myers and the paving work to RC Construction. ECF No. 21-1 at 123-26. Before RC Construction could begin paving, Allen Myers had to complete the undercutting. Id. at 126. Based on the volume of undercutting specified in the contract—described in cubic yards of soil and rock removed—Harbert established a schedule with its subcontractors. Id. at 128. The undercutting and paving work was scheduled to be completed in October 2018. Id.

In July 2018, after the undercutting work began, it became apparent that more soil and rock needed to be undercut. ECF No. 21-1 at 151. Harbert and its subcontractors stopped performing

after they had removed the volume of soil and rock agreed upon in the contract, and Harbert re- quested a contract modification to pay for the additional work. Id. at 151. The Corps unilaterally modified the contract to pay for more undercutting—an additional 5,000 cubic yards of material for an additional $496,197—in a modification known as A3. Id. at 154, 208. Under the unilateral modification, the Corps gave Harbert the opportunity to negotiate for more compensation. ECF No. 21-1 at 5. The modification stated that “[c]hanges in the contract performance time, if any, will be provided in a subsequent modification. A full time impact analysis will be reviewed during the supplemental negotiations for full and final settlement of this change.” Id. Harbert went back to undercutting.

In August, the Corps and Harbert began negotiating to convert the A3 unilateral modifica-

tion to a bilateral modification, known as P2. ECF No. 21-1 at 157-59. The bilateral modification added still more undercutting, added $359,303 in pay (instead of the total in the unilateral modifi- cation), and extended the deadline for the first phase by two months to December 21, 2018. Id. at 158. The extension did not impact the overall project schedule because the next phase would not begin until several months later. Id. The bilateral modification also contained a waiver, stating that the modification “constitutes compensation in full on behalf of the Contractor and its Subcontrac- tors and Suppliers for all costs and markups directly or indirectly attributable for the change or- dered, for all delays related thereto, for all extended overhead costs, and for performance of the change within the time frame stated.” Id.

In September 2018, Harbert again noted that it would need to undercut more soil and rocks, beyond the scope of the earlier P2 modification. ECF No. 21-1 at 161-62. The Corps agreed and issued another unilateral modification, A4, increasing the contract value by $458,950. Id. In Oc- tober, Harbert completed the undercutting work approved by the A4 modification, but the site still

required more undercutting. Id. at 183. Harbert notified the Corps and requested approval to con- tinue to work. Id. at 227. The Corps again approved the additional undercutting, and the parties signed another bilateral modification, P3, further increasing the undercutting quantity and increas- ing the pay. Id. at 165. The P3 modification, like P2, contained a waiver. It “reflect[ed] all credits due the Government and all debits due” Harbert or its subcontractors, except, unlike P2, it allowed Harbert to seek compensation for “any time extension due to the changed work, and resulting increased costs.” Id. The waiver further released the government “from any and all liability under this contract for further equitable adjustments attributable to such facts or circumstances giving rise to the proposals for adjustment except for any time extension due to the changed work and resulting increased cost.” Id. The P3 modification did not alter the scheduled completion date, which remained December 21, 2018. Id.

Later, the Corps and Harbert agreed to a third bilateral modification, known as A5, for weather delays between June and September 2018. ECF No. 21-1 at 168-70. The modification was non-compensable—that is, it did not increase the pay—extended the phase 1 completion date by ten days, and again did not impact the overall project completion date. Id. Harbert and its subcon- tractors completed phase 1 on December 19, 2018, twelve days before the new deadline. Id. at 194.

In October 2019, Harbert sent the Corps a request for an equitable adjustment to cover the expenses its paving subcontractor, RC Construction, incurred while waiting for the undercutting work to be completed. ECF No. 21-1 at 122. RC Construction was originally scheduled to work between July and October, but due to the additional undercutting, RC Construction did not begin until August 8; it finished on December 19. Harbert argued to the Corps that the additional under- cutting increased RC Construction’s period of performance by 34 days, which resulted in $2.25 million of additional compensable costs. Id. at 193-94. The Corps denied Harbert’s request for

equitable adjustment, noting that the bilateral modifications waived compensation for any addi- tional costs for the contractor and its subcontractors. Id. at 174.

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