Delaware Cornerstone Builders, Inc. v. United States

117 Fed. Cl. 539, 2014 U.S. Claims LEXIS 679, 2014 WL 3665290
CourtUnited States Court of Federal Claims
DecidedJuly 24, 2014
Docket1:10-cv-00588
StatusPublished
Cited by2 cases

This text of 117 Fed. Cl. 539 (Delaware Cornerstone Builders, Inc. 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
Delaware Cornerstone Builders, Inc. v. United States, 117 Fed. Cl. 539, 2014 U.S. Claims LEXIS 679, 2014 WL 3665290 (uscfc 2014).

Opinion

Subject Matter Jurisdiction; Contract Disputes Act, 41 U.S.C. §§ 7101-09; 48 C.F.R. § 2.101 Claim; Contracting Officer’s Final Decision; Failure to Appoint a Replacement Contracting Officer.

OPINION AND ORDER OF DISMISSAL

WILLIAMS, Judge.

Plaintiff, Delaware Cornerstone Builders, Inc. (“DCB”), brings this action under the Contract Disputes Act (“CDA”), claiming that the Department of Veterans Affairs (“VA”) breached a contract for the replacement of a VA health care facility by failing to close out the contract and pay it $200,760.39 for work performed.

Because Plaintiff never presented a claim to the contracting officer for the relief it seeks in this action, the Court lacks subject-matter jurisdiction.

Background

In late 2002, the VA awarded DCB a contract to replace a VA health care facility in Perry Point, Maryland. The project had a final walk-through on June 10, 2004, and reached “substantial completion” on June 21, 2004. Suppl. App. (“SA”) 53, Oct. 12, 2004. Plaintiff claims that as the project neared completion, the VA issued an extensive punch list covering work that the VA had previously accepted or was outside the scope of the contract. 1

On September 22, 2004, DCB sent the contracting officer, Kim Algood, a letter entitled “Contracting Officer Final Deeision[,] Progress Payment Request number 14,” stating:

[DCB] hereby resubmits its payment requisition number 14 in the amount of $143,490.39. [DCB] also requests a Contracting Officer’s Final Decision on this matter.
In accordance with the Contract Disputes Act:
I certify this claim is made in good faith, that the supporting data is accurate and complete to the best of the Contractor’s knowledge and belief, and the amount requested accurately reflects the contract adjustment for which the Contractor believes the Government is liable, and that I am duly authorized to bind the Contractor with respect to this claim.

SA 14. DCB’s president certified DCB’s claim and attached a progress payment request dated August 23, 2004, and an invoice in the amount of $143,490.39 to this letter. SA 14-20. DCB’s invoice did not identify when the invoiced work was performed. Id. Nor is it clear from this invoice how DCB *541 arrived at the $143,490.39 payment it sought. Id.

On October 12, 2004, the contracting officer responded to DCB’s September 22, 2004 request, stating:

I find [that] your recent payment request for the amount of $143,390.39 far exceeds the value of the work remaining to be performed. Consequently, as I [have] explained to you and your site representative[,] we [cannot] release this payment request at this time. Based upon the amounts for the work remaining and the delay eosts[,] there are no funds available to be paid at this time. Based on the attached retainage summary of costs in excess of balance due ... there are no funds to be released at this time.

SA 53. The contracting officer also directed DCB to complete “all work associated with the punch list” by October 22, 2004. SA 53; Am. Compl. ¶ 12; see SA 4. The referenced “retainage summary” was not attached to the October 12, 2004 letter. SA 53.

On October 13, 2004, DCB wrote to the contracting officer, complaining that “[w]e have followed the contracting officer’s written instructions regarding progress payments ... and no progress money has been received in many months. To date, no value of punch list has ever been tendered (almost U months).” SA 51.

On October 16, 2004, in response to DCB’s additional complaints about the lack of progress payments, Contracting Officer Allgood sent DCB five letters stating that payment would not be made until after DCB completed all work on the punch list. See SA 46-50. On November 23, 2004, the contracting officer sent DCB a letter indicating that it was “well beyond the date” he had given DCB to complete the punch list, and “effective immediately,” the VA would hire another contractor to complete the project and “deduct the equitable amount from the contract per a deduct change order.” SA 42. 2

The record before the Court does not reflect communications between the parties from November 23, 2004, until September 26, 2008. 3 There were, however, internal VA discussions about the project’s status and payment history. On March 28, 2006, Steve Hopkins, a VA official, sent an email to William Picking, a VA Construction Coordinator, asking for the status of the DCB project. SA 39-40. In a follow-up email on April 7, 2006, Mr. Picking explained that while he had “just obligated [the] last of the punch list items,” he still needed an unspecified amount of money as he had “never made final payment to the contractor, [or] resolved all [change orders and] known claims.” SA 39. Contracting Officer Allgood wrote to Mr. Hopkins that same day, stating: “We have not settled/closed this contract and will need funds to make final payment to DCB.” SA 38.

On September 29, 2006, Contracting Officer Allgood died. Def.’s App. 1.

On January 17, 2007, in an internal VA email to Mr. Hopkins, Mr. Picking stated:

[W]e have not had final settlement on [DCB’s contract]. Any funds remaining on that project need to remain. While we have completed all [punch list] & completion items by others, we have not heard from the Contractor who walked away from the project 2 years ago.... There are unresolved change orders as well as retainage issues to address. This will need to be done with a new Contract Specialist and they are currently shorthanded.

SA37.

On September 26, 2008, Plaintiffs then counsel, Paul Waters, asked the VA’s Chief of Contracting at the project locale, Deborah Faulkner, to contact him to discuss the contract. SA 35. On October 2, 2008, Ms. Faulkner replied that she had assigned Contracting Officer Sandra Anderson, to look *542 over the matter. Ms. Anderson advised DCB’s counsel on October 14, 2008, that she had “not been able to shade [sic] a whole lot of light on this contract,” and that she was unable to find evidence that DCB, or a contractor acting on behalf of DCB, had finished the work. SA 33, 35. Beginning on November 13, 2008, and continuing through 2010, Mr. Twigg, the vice president of DCB’s sub-subscontractor, called three individuals at the VA repeatedly — Sandra Anderson, Deborah Faulkner, and Thomas Lynn — asking whether the VA had appointed a replacement contracting officer. First Twigg Decl. ¶¶ 19-24. Each time Mr. Twigg contacted the VA officials, “[he] was either promised a return telephone call which never came, or ... [he] left a message for the Government representative which was never returned.” Id. ¶ 23.

On December 4, 2008, Mr.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
117 Fed. Cl. 539, 2014 U.S. Claims LEXIS 679, 2014 WL 3665290, Counsel Stack Legal Research, https://law.counselstack.com/opinion/delaware-cornerstone-builders-inc-v-united-states-uscfc-2014.