Cincinnati Electronics Corp. v. United States

39 Cont. Cas. Fed. 76,724, 32 Fed. Cl. 496, 1994 U.S. Claims LEXIS 225, 1994 WL 703383
CourtUnited States Court of Federal Claims
DecidedDecember 16, 1994
DocketNo. 90-3866C
StatusPublished
Cited by19 cases

This text of 39 Cont. Cas. Fed. 76,724 (Cincinnati Electronics Corp. 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
Cincinnati Electronics Corp. v. United States, 39 Cont. Cas. Fed. 76,724, 32 Fed. Cl. 496, 1994 U.S. Claims LEXIS 225, 1994 WL 703383 (uscfc 1994).

Opinion

OPINION

ROBINSON, Judge:

This matter is before the court on defendant’s August 30, 1991, and August 12, 1992, motions to dismiss. Defendant’s first motion seeks to dismiss portions of Count I and the entirety of Count II of plaintiffs original complaint, filed on October 19, 1990, for lack of subject matter jurisdiction, pursuant to Rule 12(b)(1) of the Rules of the Court of Federal Claims (RCFC). Defendant’s first motion also requests dismissal of Count IV of plaintiffs amended complaint, filed August 16, 1991. Defendant’s second motion to dismiss seeks dismissal of Count III of plaintiffs amended complaint. Plaintiff opposes defendant’s motions. Oral argument was held on February 17,1994, and supplemental briefing was ordered. Supplemental briefing was completed on March 10, 1994. After careful consideration of all of the parties’ arguments, the court will grant defendant’s first motion in part, deny it in part, and deny defendant’s second motion. The court’s reasoning is set forth below.

Factual Background

The United States Department of the Air Force (Air Force), Electronic Systems Division (E.S.D.), awarded Contract No. F19628-85-C-0086 to plaintiff on July 2,1985, for the development of an airborne radio system that would employ frequency hopping to protect against enemy communications jamming techniques. Plaintiff was originally scheduled to deliver the radios within twenty-five months. In May 1986, the parties extended the delivery date by another six months. On October 5, 1987, by administrative change order, the parties again lengthened the completion time to 47.5 months with a delivery date of June 17, 1989.

Plaintiff started developing the radio system, and, eventually, flight testing began. On February 21,1989, E.S.D. informed plaintiff that the Air Force had stopped flight tests, citing problems in the existing design [499]*499radios and concerns for pilot safety. E.S.D. issued a cure notice to plaintiff on February 24, 1989, based upon alleged deficiencies, including failure of flight testing and lack of reliability growth testing. Plaintiff-responded to the cure notice on March 20, 1989, and argued that the design specifications were defective; that the June 17, 1989, delivery date was no longer valid; that any alleged deficiencies in plaintiff’s performance were excused; and that plaintiff had been and was continuing to diligently perform its work under the contract.

On April 14,1989, E.S.D. issued a notice to show cause why the contract should not be terminated for default. Plaintiff replied to E.S.D.’s show-cause notice on April 24, 1989. On May 4, 1989, E.S.D. suspended plaintiff’s progress payments, citing the same problems set forth in its cure notice of February 24, 1989, and its show-cause notice of April 24, 1989. Plaintiff supplemented its response of March 20, 1989, and its reply of April 24, 1989, on May 16, 1989, and June 5, 1989. The Air Force issued a Stop Work Order on July 27, 1989.

On October 24, 1989, the contracting officer (C.O.) issued a final decision terminating the contract for default. On April 3, 1990, the C.O. issued a second final decision demanding the return of approximately $11,-000. 000 in progress payments. By letter dated August 31, 1990 (August 1990 claim), plaintiff submitted to the contracting officer a consolidated package of eighteen certified claims for equitable adjustment and for the price of work that was allegedly constructively accepted.1

On October 19,1990, slightly less than one year after the final decision by the contracting officer terminating plaintiff for default but less than sixty days after the submission of plaintiff’s August 1990 claim, plaintiff filed its original complaint in this court. That complaint contains two counts. The first count seeks relief from the allegedly improper default termination and from defendant’s claim for return of progress payments.2 The second count seeks monetary damages for breach of the contract.

On December 6, 1990, forty-eight days after the filing of its original complaint, plaintiff submitted a properly certified termination for convenience claim (December 1990 claim) to the C.O. which also incorporated the money damages for equitable adjustment set forth in plaintiff’s August 1990 claim.

On February 4, 1991, the C.O. responded that plaintiff’s December 1990 claim for termination for convenience costs and money damages was premature because the claim was before the court. As a result, the C.O. stated that he would not issue a final decision until the court rendered its decision in this case.

On August 16, 1991, plaintiff filed its amended complaint, containing two additional counts. The first claim of the amended complaint (Count III) requests an equitable adjustment pursuant to the changes clause of the contract. The second claim of the amended complaint (Count IV)- is for termination for convenience costs.

Contentions of the Parties

Defendant contends that Count I of plaintiff’s original complaint includes a claim for conversion of the termination for default to a termination for convenience of the Government, a claim for termination for convenience costs, and, in Count II, a claim for common law breach of contract damages. Defendant [500]*500contends that the court lacks jurisdiction over these claims because they were uncerti-fied and were never presented to the C.O. for a final decision.

Defendant also contends that this court lacks jurisdiction over Counts III and IV of plaintiffs amended complaint, filed August 16, 1991, because the claims asserted in the amended complaint are the same as those in Counts I and II of the original complaint. Thus, despite the fact that plaintiff certified its claims contained in Counts III and IV and presented them to the C.O. for a decision, defendant maintains that the C.O. was divested of authority to consider them because these exact claims were already before the court by virtue of the prior complaint. Consequently, defendant avers that plaintiffs claims in its amended complaint are incapable of being considered by the C.O. until the court grants defendant’s motions to dismiss part of Count I and all of Counts II, III, and IV.

Defendant next argues that since the C.O. cannot issue a final decision on the claims in Counts III and IV, and since the claims in the original complaint were uncertified, plaintiff has not met the jurisdictional prerequisites of the Contract Disputes Act, 41 U.S.C. §§ 601-613 (1988) (CDA). In sum, defendant contends that the court lacks jurisdiction over all of plaintiffs claims except those portions of Count I that challenge the propriety of the default termination and defendant’s demand for the return of progress payments; therefore, defendant argues, part of Count I and all of Counts II, III, and IV must be dismissed.

Plaintiff contends that Count I of its original complaint, properly construed, did not claim termination for convenience costs; rather, those costs were first sought in Count IV of its amended complaint. Plaintiff also asserts that Count II of its original complaint, properly construed, did not seek monetary damages for breach of contract and that Count III of its amended complaint asserts, for the first time in this litigation, its claims for monetary damages pursuant to the changes clause of the contract.

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Bluebook (online)
39 Cont. Cas. Fed. 76,724, 32 Fed. Cl. 496, 1994 U.S. Claims LEXIS 225, 1994 WL 703383, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cincinnati-electronics-corp-v-united-states-uscfc-1994.