CYR Construction Co. v. United States

27 Fed. Cl. 153, 1992 U.S. Claims LEXIS 220, 1992 WL 338549
CourtUnited States Court of Federal Claims
DecidedNovember 18, 1992
DocketNos. 90-3977C, 90-3978C
StatusPublished
Cited by6 cases

This text of 27 Fed. Cl. 153 (CYR Construction Co. 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
CYR Construction Co. v. United States, 27 Fed. Cl. 153, 1992 U.S. Claims LEXIS 220, 1992 WL 338549 (uscfc 1992).

Opinion

MEMORANDUM OF DECISION

HARKINS, Senior Judge.

CYR Construction Company (plaintiff) was awarded two formally advertised firm fixed price construction contracts by the Army Corps of Engineers for work at Loring Air Force Base, Limestone, Maine. Work under the contracts was concurrent. The contracts were on standard forms, and included General Provisions (construction contract), 1 May 1983 Ed., as amended.

Contract No. DACA51-84-C-0043 (contract—0043), priced at $5,684,510 was awarded on October 31,1983, for work that was designated Upgrade Alert Area. The work included construction of three supply facility buildings, TAC aprons, and related work. The Notice to Proceed was acknowledged by CYR on March 20, 1984. All work was to be completed within 540 calendar days thereafter (Sept. 10, 1985).

Contract No. DACA51-84-C-0073 (contract—0073), priced at $3,050,878 was awarded on February 17, 1984, for the construction of the ADAL Alert Crew Facility. The work included a structural concrete building for Alert Forces, and a separate structure for visitation purposes. The Notice to Proceed was acknowledged by CYR on March 20, 1984. All work was to be completed within 720 calendar days (Mar. 10, 1986).

During the course of work, 22 bilateral modifications were issued on contract— 0043, which increased the contract amount to $5,790,578. Five of the modifications included time changes that extended the completion date 471 days, to December 31, 1986.

During the course of work, 13 bilateral modifications were issued on contract— 0073, which increased the contract amount to $3,155,601. Four of the modifications included time changes that extended the completion date 174 days, to August 31, 1986.

By November 27, 1985, 94.9 percent of the work had been done on contract — 0043, and the contract was substantially complete. By April 4, 1986, 97 percent of the work had been done on contract — 0073, and [156]*156the contract was substantially complete. The contracting officer’s (CO’s) final decisions state that as of February 27, 1987, contract — 0043 was 100 percent complete, and as of August 31, 1986, contract — 0073 was 100 percent complete.

On August 12, 1988, CYR submitted a letter that listed combined claims for work on both contracts, for a total of $450,410. Unrecovered overhead was claimed on both contracts, with separate amounts stated for each. A claim amounting to $32,436 for additional wages, based on the labor classification of employees installing reinforcing steel (Rebar) was included, without designation of the contract to which the claim applied.

The CO for both contracts was the same person. In letters dated November 30, 1989, the CO issued separate decisions on each contract. During the intervening period, resubmittals had clarified the amounts claimed for unrecovered overhead with respect to each contract. The claim for unrecovered overhead amounted to $307,196 for 471 days on contract — 0043, and to $64,862 for 174 days on contract— 0073. The November 30, 1989, letters each determined that the claim for unrecovered overhead on the relevant contract was without merit and the amount claimed was denied.

In both of the November 30, 1989, letters, the CO stated “the aspect of the claim regarding back wages is currently being negotiated with the Contractor.” Neither letter included a CO decision on CYR’s claim for additional wages paid to reinforcing steel (Rebar) installers.

On November 30, 1990, plaintiff filed a separate complaint with respect to each contract; docket No. 90-3977C contains five counts that apply to claims relative to contract — 0043, and docket No. 90-3978C contains six counts that apply to claims relative to contract — 0073. Count I in each docket is concerned with the claims for unrecovered overhead. Count III in docket No. 90-3978C is concerned with the claim for additional wages paid to Rebar installers.

On November 22, 1991, defendant filed separate motions for summary judgment relative to Count I in each docket, and a motion to dismiss for lack of subject matter jurisdiction as to Count III in docket No. 90-3978C. These motions came before the court for oral argument on November 4, 1992. At the close of argument, counsel were told that the motions for summary judgment as to Count I in each docket would be denied. With respect to Count III, in docket No. 90-3978C, counsel were told that defendant’s motion to dismiss pursuant to RUSCC 12(b)(1), lack of subject matter jurisdiction, would be denied. The motion to dismiss Count III under RUSCC 12(b)(4), failure to state a claim upon which relief may be granted, would be converted to a motion for summary judgment, and, as so converted, on the basis of the materials in the motion papers, would be allowed. Rulings on these motions, and a schedule for further proceedings on the remaining matters in these dockets, were contained in a separate order filed November 5, 1992.

* Hs * * * *

Defendant’s motion for partial summary judgment for unrecovered overhead costs in Count I of contract — 0043, initially applied to five modifications that involved a total of 471 additional days. During the course of briefing, the claims relative to two modifications, each involving 30-day extensions, were withdrawn by plaintiff; the three remaining modifications involve extension periods that total 411 days.

Defendant’s motion for partial summary judgment for unrecovered overhead costs in Count I of contract — 0073 initially identified four modifications. The time extensions in these four modifications total 228 days. The claim relative to one modification, which involved a 43-day time extension, was withdrawn by plaintiff during the course of briefing. The time extensions allowed in the three remaining modifications total 185 days.1

[157]*157Each of the bilateral contract modifications relative to the claims for unrecovered overhead costs contains the standard provision used in Army Corps of Engineer contracts for modifications under the Changes clause. Defendant asserts the doctrine of accord and satisfaction operates to bar plaintiffs impact delay claim for unrecovered overhead during the time extensions agreed upon in the modifications. CYR asserts that the standard release language is ambiguous, and that the modifications in dispute involved only time and money costs applicable to the changed work. According to CYR, there was no accord and satisfaction as to delays incident to unchanged work, and that the CO had agreed orally that CYR subsequently could submit claims for unrecovered overhead. CYR also contends that the delays it encountered were not due to the changed work, but, instead, were due to the CO’s failure to close the contracts at the times they were substantially complete: November 27, 1985, for contract — 0043 and April 4, 1986, for contract — 0073. Allegedly, the CO refused to accept the work in order to keep the job open solely for Government purposes. CYR contends contract — 0043 was improperly held open 411 days, and contract— 0073 was improperly held open an additional 131 days.

Defendant is a movant for summary judgment under RUSCC 56. Summary judgment is appropriate where there is a showing that there is no genuine issue as to any material fact, and that the movant is entitled to judgment as a matter of law. A movant for summary judgment has the burden of showing the absence of genuine issues as to any material facts. Adickes v. Kress, 398 U.S.

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Cite This Page — Counsel Stack

Bluebook (online)
27 Fed. Cl. 153, 1992 U.S. Claims LEXIS 220, 1992 WL 338549, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cyr-construction-co-v-united-states-uscfc-1992.