Facilities Systems Engineering Corp. v. United States

38 Cont. Cas. Fed. 76,315, 25 Cl. Ct. 761, 1992 U.S. Claims LEXIS 184
CourtUnited States Court of Claims
DecidedApril 24, 1992
DocketNo. 91-1366C
StatusPublished
Cited by1 cases

This text of 38 Cont. Cas. Fed. 76,315 (Facilities Systems Engineering Corp. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Facilities Systems Engineering Corp. v. United States, 38 Cont. Cas. Fed. 76,315, 25 Cl. Ct. 761, 1992 U.S. Claims LEXIS 184 (cc 1992).

Opinion

OPINION

FUTEY, Judge.

This government contract case is before the court on defendant’s motion to dismiss plaintiff’s complaint for lack of subject matter jurisdiction. Plaintiff contracted with the United States to supply architectural and engineering services, and seeks compensation for government delays and contract changes, and reimbursement of costs incurred under the contract. In its motion, defendant asserts that the court lacks jurisdiction over plaintiff’s complaint as plaintiff failed to file a properly certified claim cognizable under the Contract Disputes Act of 1978 (CDA), 41 U.S.C. §§ 601-13, with the contracting officer (CO).

Factual Background

On August 7, 1985, the United States Department of Energy (DOE) awarded plaintiff, Facilities Systems Engineering Corporation, Contract No. DEAC0485AL22487, for architectural and engineering services to be performed at the DOE’s Rocky Flats Plant in Golden, Colorado. Pursuant to the contract, plaintiff was to participate in a DOE project entitled “Renovation of Plutonium Building Utilities.”

On June 30,1986, the DOE issued modification M004. In the modification, the DOE informed plaintiff that it had assigned its rights and interest in its contract with plaintiff to Rockwell International Corporation (Rockwell). Rockwell had entered into a separate contract with the DOE to manage and operate the Rocky Flats Plant for the DOE. Plaintiff further agreed to modify the contract as follows:

References in Parts I, II, and III to “Government” or “Contracting Officer” are deleted and “Rockwell International” substituted therefor except in the clauses entitled: “Definitions;” “Audit Negotiations;” “Equal Opportunity;” “Authorization and Consent;” “Reporting of Royalties;” “Disputes;” and “Equal Opportunity Preaward Clearances of Subcontract,” where “the Government” or “Contracting Officer” shall remain unchanged.

Thus, effective June 30, 1986, Rockwell began administering the contract in place of the DOE. From August 26, 1986 through July 8, 1988, plaintiff claims that Rockwell issued 12 modifications to the contract.

According to plaintiff, from at least September 7, 1987, it began corresponding with Rockwell concerning the “claims” presently at issue. In March 1988, plaintiff requested compensation for losses incurred in contract performance. Rockwell rejected plaintiff’s request in a letter of June 8, 1988, advising plaintiff that the letter constituted a final determination of plaintiff’s request. Rockwell further informed plaintiff that it could contest the determination by presenting a claim to the CO pursuant to the disputes clause of the contract. Rockwell concluded by providing the name of the relevant CO and listing his address.

On August 26, 1988, Rockwell issued a notice of partial termination of the contract [763]*763for the convenience of the government. Plaintiff had previously completed the part of the contract that was unaffected by the partial termination. Therefore, on the issuance of the partial termination, plaintiff’s contractual relationship with Rockwell was at an end. On September 16, 1988, plaintiff accepted the termination but reserved all rights available at law and in equity.

On November 8, 1988, plaintiff sent a letter to Mr. A.E. Whitman, the CO for the DOE, in which it made three “claims.” First, plaintiff alleged that it had suffered loss of business reputation and money damages because of Rockwell’s incompetent management. In addition, plaintiff asserted that Rockwell had failed to execute a contract change and had created additional work. Finally, plaintiff contended that Rockwell had caused financial losses by failing to release funds earmarked for plaintiff. The compensation sought for these “claims” amounted to $282,247.42. In the last paragraph, plaintiff stated that it had sought legal advice and was “prepared to provide all required actions to perfect the claim.” Whitman never issued a written decision responding to plaintiff’s “claims.”

On December 29, 1989, the DOE, Rockwell, and EG & G Rocky Flats, Inc. (EG & G) executed a document entitled “RFP Three Party Transfer Agreement.” In the agreement, Rockwell assigned EG & G its rights and interest in both its managing and operating contract with the DOE and its subcontracts with contractors such as plaintiff. Conversely, EG & G agreed to assume Rockwell’s duties under those contracts. The agreement was effective January 1, 1990.

On May 23, 1990, plaintiff and EG & G met to discuss plaintiff’s “claims.” The parties dispute what happened at that meeting. In his declaration, Edward F. Slattery, plaintiff’s chairman and chief executive officer, maintains that Brad M. Smith, Senior Counsel for EG & G, stated that he had reviewed the correspondence relating to plaintiff’s “claims” but had not found a claim presented to the DOE that complied with the FAR’s certification requirement. Therefore, Slattery alleges, Smith instructed plaintiff to submit a claim to the DOE that fulfilled that requirement and in addition provided background data. However, in his declaration, Smith asserts that he met with plaintiff to determine whether plaintiffs’ “claims” could be compromised. According to Smith, he suggested that plaintiff provide substantiation for its position to facilitate further compromise discussions.

On June 20, 1990, plaintiff addressed a letter to “United States Department of Energy, Albuquerque Operations Office, P.O. Box 928, Golden, Colorado, 80402-0928, via EGG [sic] Colorado Corporation, Attention: Mr. Brad Smith, Chief Counsel.” The “Subject” of the letter was “Claims in Process under Contract No. DE AC04-85-AL22487, Renovation of Plutonium Building Utilities.” The letter provided in relevant part as follows:

Dear Mr. Smith:

Pursuant to our discussion of May 23, 1990, herewith the supporting documentation requested with regard to our claims:

Delay Claim $184,671.00 including interest

Change Notice No. $ 65,010.00 including 7, and additional interest work

Reimbursable Set- $ 37,441.00 including tlement interest

Our recordings of that meeting indicate that you requested supporting documentation in the following specific areas of the claims presented to the Department of Energy in our letter of July 12, 1988 addressed to Mr. A.E. Whitman.1
[List of the area in which supporting documentation was requested, followed by the section of the enclosed documentation addressing the area.]
[764]*764The contractor believes that this documentation comprehensively meets the objectives described in the meeting of May 23, 1990 at Rocky Flats.
[Certification language.] Facilities Systems Engineering Corporation hereby demands that the Department of Energy pay to Facilities Systems Engineering Corporation the full amount of such claims.
I am and our counsel is prepared to discuss this matter with you at your convenience.
Very Truly Yours,
FACILITIES SYSTEMS ENGINEERING CORPORATION
/s/
Edward V. Slattery,

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38 Cont. Cas. Fed. 76,315, 25 Cl. Ct. 761, 1992 U.S. Claims LEXIS 184, Counsel Stack Legal Research, https://law.counselstack.com/opinion/facilities-systems-engineering-corp-v-united-states-cc-1992.