Contrack Watts-Uejo Kogyo Jv v. Secretary of the Army

Court of Appeals for the Federal Circuit·Decided September 16, 2024·No. 23-1373·Unpublished

Opinion

NOTE: This disposition is nonprecedential.

United States Court of Appeals for the Federal Circuit

CONTRACK WATTS-UEJO KOGYO JV, Appellant

v.

SECRETARY OF THE ARMY,

Appellee

2023-1373

Appeal from the Armed Services Board of Contract Appeals in Nos. 63211, 63212, 63213, 63214, 63215, Administrative Judge J. Reid Prouty, Administrative Judge Mark A. Melnick, Administrative Judge Richard Shackleford.

Decided: September 16, 2024

ZACHARY FLETCHER JACOBSON, Seyfarth Shaw LLP, Washington, DC, argued for appellant. Also represented by SARA BEIRO FARABOW, JEFFREY M. HUMMEL, MICHAEL EDWARD WAGNER, JR.

GEOFFREY M. LONG, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washington , DC, argued for appellee. Also represented by BRIAN 2 CONTRACK WATTS-UEJO KOGYO JV v. SECRETARY OF THE ARMY

M. BOYNTON, MARTIN F. HOCKEY, JR., PATRICIA M. MCCARTHY.

Before LOURIE, CLEVENGER, and HUGHES, Circuit Judges. HUGHES, Circuit Judge.

Contrack Watts, Inc. and Uejo Kogyo K.K., two parties in a joint venture for federal procurement, appeal the Armed Services Board of Contract Appeals’ decision that it lacked jurisdiction to review the joint venture’s appeal because the underlying claim was invalidly submitted. Because we hold that the claim was submitted by a party not authorized to bind the joint venture, we affirm.

I

A

Contrack Watts, Inc. (CWI) and Uejo Kogyo K.K. (UK)

entered into a joint venture agreement to bid for a federal contract, effective April 1, 2016. See Federal Acquisition Regulation (FAR) 125.8(a) (“A joint venture of two or more business concerns may submit an offer as a small business for a Federal procurement, subcontract or sale so long as each [business] is small under the size standard corresponding to . . . the contract.”). The two parties planned to bid for a solicitation issued by the United States Army Corps of Engineers (Corps) for construction services in Japan . CWI and UK agreed “to combine their efforts for the Execution of the Project and to jointly execute the Works in accordance with the specifications [and] conditions of the Contract resulting from [the solicitation for proposals], on the basis set forth in [the] Agreement.” J.A. 26. Article 3 of the joint venture agreement, titled “General Obligations of the Parties” establishes each party’s authority to act for the joint venture, stating:

3.1 No Party shall except with the prior consent of the other Party make, directly or indirectly, solely

CONTRACK WATTS-UEJO KOGYO JV v. SECRETARY OF THE ARMY 3

or in association with others, any agreement with the Employer or any third party in connection to the Project. . . . 3.4. No Party shall have the authority to bind or to make any commitment on behalf of the JV or of any other Party unless such authority is expressed in writing by Parties jointly in regard to the JV or by a Party individually in regard to the other Party.

J.A. 27.

Article 5 of the agreement, titled “Lead Party,” specifies the roles of the parties:

It is mutually agreed that Mr. Wahid Hakki, CEO of Contrack Watts is nominated as the Chairman, and Mr. Shinko Uejo, President of Uejo Kogyo is nominated as the Vice Chairman of the Board of the Joint Venture. It has been agreed that Mr. Wahid Hakki, CEO of Contrack Watts will act as the Program Manager and will be representing the Joint Venture in all aspects related to communication with the Employer and the operation performance. Also, all active progress details shall be reported to him through documentation.

J.A. 28.

Article 6 of the agreement also establishes a “Supervisory Board” for the joint venture. The parties agreed to appoint three members from CWI and three members from UK to the Supervisory Board. Article 6 establishes the Supervisory Board’s responsibilities and outlines a consensus -based decision-making process, as follows:

6.3 The Supervisory Board will establish within the first two (2) months systems and should be responsible for discussing and making decisions on the general policy of the Joint Venture for the 4 CONTRACK WATTS-UEJO KOGYO JV v. SECRETARY OF THE ARMY

execution of the Contract, Performance of the Works, and financial matters. . . . 6.7 Each party shall have one vote at the Board (irrespective of the number of members attending) and decisions of the Board shall be taken unanimously . If unanimity cannot be achieved, then the meeting shall be adjourned for twenty four (24) hours or any other date mutually agreed between the Parties. If unanimity is still not achieved, the meeting shall be reconvened within seven (7) days or any other date mutually agreed between the Parties and the members shall attempt to finally reach a unanimous decision. J.A. 28–29.

The joint venture agreement states that it will be construed in accordance with the substantive laws of the United States and Japan, and creates the following dispute resolution procedure:

The Parties shall make their best efforts to settle amicably any and all disputes which may arise out of or in connection with the present Agreement. If such dispute is not settled amicably in a period of fourteen (14) days, said dispute shall be finally settled by the Supervisory Board in a duration limited to thirty (30) days. J.A. 30. And the agreement may only be changed, modified, or amended in a writing “duly executed by all the Parties.” Id.

B

On December 19, 2016, the Corps awarded the CWI-

UK joint venture a multiple award task order contract (MATOC), Contract No. W912HV-17-D-0013. See JA. 36– 39. The contract was signed for the joint venture by two members of the joint venture’s Supervisory Board, namely

CONTRACK WATTS-UEJO KOGYO JV v. SECRETARY OF THE ARMY 5

Jason Roberts of CWI and Masando Katakura of UK. J.A. 37–38. On the same date, the Corps issued Task Order No. 0001, for the design and construction of a child development center in Yokosuka, Japan.

On December 23, 2016, the Chief Operating Officer of CWI and the President of UK signed a letter appointing six individuals as “authorized representatives” of the joint venture for the MATOC. J.A. 929–30 (hereinafter, December 2016 letter). The six individuals, who signed an acknowledgement included in the letter, were also members of the joint venture’s Supervisory Board. The appointment letter stated that “[a]s an authorized representative, the [listed] individuals may sign proposals, modifications, bonds, final payment paperwork, and take any other necessary actions on behalf of [the JV] for the aforementioned contract.” J.A. 929.

On August 25, 2017, Mr. Roberts, an authorized representative of the joint venture per the December 2016 letter, executed the joint venture’s offer for a task order to construct a Company Operations Complex in Kyogamisaki, Japan . On September 28, 2017, the government issued CWI- UK Task Order No. W912HV17F0046 (the -0046 task order ). J.A. 932.

Approximately three years later, on December 1, 2020, CWI attempted to unilaterally withdraw Mr. Roberts and Ihab Demian from the Supervisory Board of the joint venture and appoint Omar El Bassiouny and Mourad Azmy by means of a resolution issued by CWI’s board. Soon after, the Corps received a document, in which T. Ryan Lamb, the General Counsel and Secretary of CWI, attempted to unilaterally appoint David Rutherford and Takao Kakoto as project managers for the joint venture, with the ability to make contract modifications at or under $100,000. In response , on December 14, 2020, the Corps’ contracting officer noted that the Corps had no record of Mr. Lamb being authorized to act on behalf of the joint venture. The 6 CONTRACK WATTS-UEJO KOGYO JV v. SECRETARY OF THE ARMY

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