Comtrol, Inc. v. United States

294 F.3d 1357, 2002 U.S. App. LEXIS 12679, 2002 WL 1369896
CourtCourt of Appeals for the Federal Circuit
DecidedJune 26, 2002
Docket01-5115
StatusPublished
Cited by79 cases

This text of 294 F.3d 1357 (Comtrol, Inc. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Comtrol, Inc. v. United States, 294 F.3d 1357, 2002 U.S. App. LEXIS 12679, 2002 WL 1369896 (Fed. Cir. 2002).

Opinion

DYK, Circuit Judge.

Comtrol, Inc. (“Comtrol”) appeals the decision of the Court of Federal Claims granting summary judgment that Comtrol is not entitled to an equitable adjustment of a contract between Comtrol and the Federal Aviation Administration (“FAA”) for construction work at the Salt Lake City International Airport, and that Com-trol is not entitled to damages for breach of that contract. Comtrol, Inc. v. United States, 49 Fed. Cl. 294 (2001).

Comtrol urges five claims on appeal: 1) a claim for differing site conditions and defective specifications based on the presence of quicksand at the site; 2) a claim for differing site conditions and defective specifications based on the placement of a fuel pipeline; 3) a claim for additional costs relating to alleged improvements to three underground duct banks; 4) a claim for additional costs including overhead, time, and acceleration costs resulting from numerous change orders, the direct costs of which have already been resolved by the parties; and 5) a claim for breach of the implied contractual duties of cooperation, non-interference with contract, and good faith and fair dealing.

As to the first claim, we hold that the soils encountered did not constitute differing site conditions because the specification did not indicate that only hard materials would be encountered at the site, and because Comtrol cannot rely on an engineering report that it did not review before award. We similarly reject the defective specifications claim. As to the differing site conditions and defective specifications claims relating to the fuel pipeline, we hold that the contract was ambiguous as to the existence and location of the pipeline, but that the ambiguity was patent, barring recovery. As to the claim relating to additional costs for alleged improvements of the duct banks, we hold that the Court of Federal Claims erred by treating the issue as depending entirely on the site conditions claim. We vacate and remand for further consideration of that claim. As for the claim relating to additional costs resulting from certain unresolved change orders, we hold that the Court of Federal Claims erred in failing to specifically address this claim, and vacate and remand for further proceedings. As for the breach of contract claim, we hold that the Court of Federal Claims erred in finding that this claim depended entirely on Comtrol’s ability to prove differing site conditions, and vacate and remand for further proceedings. Thus, we affirm in part, vacate in part, and remand.

BACKGROUND

In December 1994, FAA invited bids for a firm, fixed-price contract to construct an air traffic control tower and base building at the Salt Lake City International Airport. The contract was awarded to Com-trol on April 6,1995.

1. Soil Conditions

The Solicitation included the standard Federal Acquisition Regulation (“FAR”) *1360 clauses for differing site conditions and site investigations, 48 C.F.R. §§ 52.236-2 and 52.236-3 (1994), and the standard changes clause, 48 C.F.R. § 52.243-4 (1994).

Paragraph 1.6 of the Solicitation stated that “Hard material ... may be encountered,” and paragraph 1.3.11 defined “[h]ard [m]aterial” as “[w]eathered rock, dense consolidated deposits or conglomerate materials which are not included in the definition of ‘rock’ but which usually require the use of heavy excavation equipment with ripper teeth or the use of jack hammers for removal.” Paragraph 1.7.2 directed bidders to include in their bids “the collection and disposal of surface and subsurface water encountered in the course of construction.” Paragraph 1.7.1 provided that “[t]he Contractor shall have the option to provide shoring and sheeting.!’ The Solicitation stated that a site visit was encouraged and noted that prior arrangements were not necessary for bidders to visit the FAA site.

Paragraph 1.1.5 of the Solicitation, entitled “Project Specific Information,” incorporated by reference a soils report prepared by RB & G Engineering, Inc. dated August 1993 (“RB & G Report”), and four sets of construction drawings. The RB & G Report and construction drawings were maintained at the offices of FAA’s architect. Comtrol did not review the RB.& G Report before submitting its bid.

The RB & G Report made numerous representations as to the soil conditions at the site. The Report stated that “the subsurface material in the upper 6.5 to 10 feet in Test Holes 1 through 4 consists of a relatively soft gray clay. The remainder of the soil profile in these four borings generally consisted of interbedded sand and clay layers,” and noted that “all of the subsurface materials are natural deposits.” The Report stated that the soils investigated had recently been saturated with water and that groundwater was encountered at an approximate depth of seven feet for one test hole and two feet for the remaining test holes. The Report further stated that “standard penetration tests indicate that the cohesive material in the upper portion of the soil profile is in a medium stiff condition. The sandy material throughout the soil profile is generally in a medium dense state;” that “[t]est hole 5 defines the characteristics of the subsurface material;” that- it “is apparent from this boring that most of the subsurface material in the upper portion of the profile consists of cohesive material;” and that “the results of these tests indicate that the cohesive material in the upper portion of the,soil profile is in a medium stiff condition.”

Soon after award, Comtrol proceeded with the excavation by driving a sheet pile wall around the perimeter of the excavation to contain groundwater. When Com-trol began excavating within the sheet pile walls, it encountered loose sand and water. Quick conditions were created when the high water table at the site exerted pressure on this loose sand and water. The surrounding soils then subsided and the sheet piling failed, damaging a nearby duct bank.

2. Chevron Pipeline

Paragraph 1.6 . of the Solicitation stated that “No pipes ... except those indicated, will be encountered,” However, one- of the drawings referenced in paragraph 1.1.5 of the Solicitation (the “Pipeline Drawing”) depicted a structure labeled “Existing Chevron Pipeline” and noted that this pipeline was “to be relocated to new utility corridor by others.” The drawing also indicated a proposed location for the “New Utility Corridor” running beneath a portion of the site that was later proposed as the location of the tower. These' drawings were maintained at the offices of FAA’s *1361 architect. Comtrol did not request or obtain these drawings until after the failure of the sheet pile wall.

Comtrol found the pipeline after award when it used precautionary measures to locate and identify existing subsurface features. This pipeline had been relocated after the preparation of the RB & G Report in August 1993, but before FAA invited bids in December 1994.

3. Duct Banks

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Bluebook (online)
294 F.3d 1357, 2002 U.S. App. LEXIS 12679, 2002 WL 1369896, Counsel Stack Legal Research, https://law.counselstack.com/opinion/comtrol-inc-v-united-states-cafc-2002.