Brister & Koester Lumber Corp. v. United States

90 F. Supp. 695, 116 Ct. Cl. 824, 1950 U.S. Ct. Cl. LEXIS 121
CourtUnited States Court of Claims
DecidedJune 5, 1950
Docket48598
StatusPublished

This text of 90 F. Supp. 695 (Brister & Koester Lumber Corp. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brister & Koester Lumber Corp. v. United States, 90 F. Supp. 695, 116 Ct. Cl. 824, 1950 U.S. Ct. Cl. LEXIS 121 (cc 1950).

Opinion

LITTLETON, Judge.

In 1941 the Government, through the Bureau of Yards and Docks, Navy Department, entered into a cost-plus-fixed-fee contract with three corporations, acting jointly, for the construction of certain projects at New River, North Carolina, including barracks, utilities, and various other training facilities for the Marine Corps. The estimated cost was approximately. $13,000,-000, and Article 25 of the contract provided that the Government would pay to the prime contractors “the sum of the actual net cost to the Contractors of the materials actually furnished and the services and labor actually performed under the terms of this contract plus a fixed-fee amounting to $400,000.” Other provisions of this contract pertinent to this case are set forth in finding 2. Article 1 provided that a naval officer would be designated by the Government as “Officer in Charge” and that such officer, “under the direction of the Contracting Officer, shall have complete charge, on behalf of the Government, of the work under this contract in the field.” Article 9(a) specified that “All materials required for the accomplishment of the work under this contract shall be provided by the Contractors,” and subparagraph (b) provided that, except in certain circumstances, “No purchase contract or order in excess of $500 shall be made or placed [by the contractors] without the prior approval of the Contracting Officer or his authorized representative.”

The prime contractors established a purchasing department and placed Robert N. Hunter, one of their employees, in charge thereof as purchasing agent. The Government designated Commander Madison Nichols, an officer of the Navy Department, as ' the Resident Officer in Charge under Article 1 of the contract, and during the time here involved he was in immediate charge, on behalf of the Government, of the work under the contract as the authorized representative of the contracting officer.

Certain subcontracts were made by the prime contractors with the approval of the Government, under Article 9(c) of the prime contract. One of these subcontractors was the George W. Kane Company, which had a subcontract for the construction of housing facilities. The Kane Company required certain lumber millwork and, in September 1941, its construction manager, John A. Timberlake, requested the prime contractors’ purchasing agent Hunter to procure 24 items of this material. The prime contractors issued a written invitation for unit price bids for this material (finding 4).

On September 23, 1941, the plaintiff, a New York corporation with its principal office in New York City, submitted a unit price bid to the prime contractors through its authorized agent George C. Brown of Greensboro, North Carolina. The facts relative to the procedure followed in the issuance of invitations for bids and the awarding of contracts by the prime contractors are set out in finding 5. Eight bids were received and the plaintiff was the lowest bidder. Finding 6. The primary interest of the Government in requiring that its President Officer in Charge approve purchase orders for materials issued by the prime contractors was to make sure that the *697 contractors complied with Navy regulations, relative to competitive bidding and awarding contracts to the low bidder.

Hunter and Timberlake, representing the prime contractors, had some doubt as to whether the plaintiff was in a position to supply the lumber millwork for which plaintiff’s representative Brown had submitted plaintiff’s bid. From previous experience, Timberlake, representing the Kane Company, knew plaintiff as a reliable supplier of dimension and framing lumber, but he had never known plaintiff to submit a bid for fabricated millwork since this was not the kind of lumber normally handled by plaintiff. In addition, on previous orders submitted by plaintiff deliveries had not been made in accordance with promises made by plaintiff’s representative Brown. Hunter and Timberlake noticed that plaintiff’s bid was considerably lower than the next lowest bid, but they did not consider that plaintiff’s bid was abnormally low, and they had no question in their minds about the bid on that ground; neither did Commander Nichols.

After Hunter and Timberlake had discussed the bid with Commander Nichols, Timberlake, by telephone, discussed the bid submitted by Brown with plaintiff’s president, M. C. Brister, in New York (finding 8), and Brister stated that plaintiff would stand behind the bid as submitted by Brown. Timberlake also discussed the bid with Brown. Brister had another of plaintiff’s representatives, a Mr. Morris, come to see Timberlake and discuss the bid with him. After this discussion, Morris advised Timberlake that plaintiff did not wish to withdraw the bid but desired that it stand as made. As a result of these discussions, the prime contractors decided to award the contract to plaintiff and recommended to Commander Nichols that he approve the purchase order for the specified quantity of materials in the total amount of the unit prices bid by plaintiff. Such purchase order was accordingly approved in the total sum of $18,462.74 (finding 9).

During November and December 1941, plaintiff delivered certain of the materials called for by its contract with the prime contractors and received payments therefor totaling $17,285.34. During January 1942, it failed to deliver certain quantities within the time required and, in accordance with the contract, the prime contractors purchased such materials in the market and charged plaintiff with the excess cost thereof in the sum of $560.58. This charge was later canceled, as stated in finding 15, by the prime contractors. The balance of the materials called for in the contract was delivered by plaintiff during January, February and March, and the contract was fully performed on March 18, 1942. On March 20, 1943, the prime contractors sent plaintiff a check for $818.57, (finding 15) representing the balance due plaintiff under its contract after deducting the amount of $17,-285.34 paid and the amount of the contract unit prices for materials purchased in the open market.

Plaintiff refused to accept this check and returned it in view of its claim and invoice for $3,959.68 in excess of the total ($18,-462.74) of the unit prices set forth in the contract. This claim that the contract price for the materials furnished should have been $22,422.42, was based on the ground that plaintiff’s agent, George C. Brown, had made certain mistakes in the bid submitted, in that he had submitted erroneous unit prices for the materials called for in items 19 to 22, inclusive, in the bid schedule of the invitation for bids. The claim represented a recomputation and increase of these unit prices (findings 12 and 13). In May 1942, these unit prices were again recomputed in a new invoice and the claim was reduced to $2,415.81 (finding 13, last paragraph). The plaintiff also submitted its claim for $2,415.81 to Commander Nichols, Resident Officer in Charge, and Commander C. W. Porter, the Government’s Officer in Charge of Construction, at Norfolk, Virginia. Porter was the superior of Nichols.

Plaintiff’s claim was denied by the prime contractors and by Commander Porter. Plaintiff also submitted its claim to the Chief of the Bureau of Yards and Docks, Navy Department, who was the contracting officer; to the Board of Appeals, Office of Contract Settlement, and to the Secretary *698

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Cite This Page — Counsel Stack

Bluebook (online)
90 F. Supp. 695, 116 Ct. Cl. 824, 1950 U.S. Ct. Cl. LEXIS 121, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brister-koester-lumber-corp-v-united-states-cc-1950.