Federal Contracting, Inc. v. United States

128 Fed. Cl. 788, 2016 U.S. Claims LEXIS 1420, 2016 WL 5408137
CourtUnited States Court of Federal Claims
DecidedSeptember 28, 2016
Docket16-215C
StatusPublished
Cited by7 cases

This text of 128 Fed. Cl. 788 (Federal Contracting, 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
Federal Contracting, Inc. v. United States, 128 Fed. Cl. 788, 2016 U.S. Claims LEXIS 1420, 2016 WL 5408137 (uscfc 2016).

Opinion

Keywords: Contract Disputes Act; Breach of Contract; Performance Bond; Sum Certain; Performance Evaluation; Termination for Cause; Termination for Convenience.

OPINION AND ORDER

KAPLAN, Judge.

Currently before the Court in this contract case are the government’s motion to partially dismiss the complaint of Plaintiff Federal Contracting, Inc. d/b/a Bryan Construction, Inc. (FCI) and FCI’s cross-motion for a default judgment as to Count III of its complaint. The government’s motion seeks dismissal of Counts I, II, and IV of the complaint pursuant to Rule 12(b)(1) of the Rules of the Court of Federal Claims (RCFC). FCI seeks a default judgment against the government as to Count III of its complaint.

As discussed below, the Court agrees with the government that it lacks jurisdiction over Counts I and II of FCI’s complaint seeking monetary damages for breach of contract, because FCI failed to submit valid claims alleging to the contracting officer (CO) under the Contract Disputes Act (CDA), 41 U.S.C. §§ 7101-09. However, the Court rejects the government’s jurisdictional objections to Count IV of FCI’s complaint. In that Count, FCI challenges and seeks an order directing the government to withdraw an unsatisfactory evaluation of FCI’s performance on the contract. Contrary to the government’s argu *791 ment, the Court concludes that FCI did submit that claim to the CO as required by the CDA and received a final decision from the CO as to that claim. Accordingly, the government’s motion to dismiss is GRANTED-IN-PART and DENIED-IN-PART. In addition, for the reasons discussed below, FCI’s cross-motion for default judgment is DENIED.

BACKGROUND 1

I. The Contract

On January 23, 2015, the United States Army Corps of Engineers (USACE) awarded FCI a contract for the construction of a medical warehouse on the premises of A1 Udeid Air Base, Qatar (A1 Udeid). Compl. ¶ 5, EOF No. 1. The contract was a firm fixed-price contract in the amount of $4,899,425. Id. FCI was to complete the building by January 28, 2016. See id. ¶ 6.

On March 19, 2015, USACE sent FCI a Letter of Concern regarding the timeliness of several mandatory pre-construction submissions. 2 Compl. ¶ 13; Def.’s Mot. to Dismiss (Def.’s Mot) App. at A1, EOF No. 10-1. The agency expressed its concern that FCI’s “fail[ure] to provide [the] required submittals ... put[ ] the project at risk.” Id. On May 5, 2015, USACE sent FCI a Notice of Intent to Issue [an] Interim Unsatisfactory Performance Appraisal, stating that “the contract continues to fall behind schedule” and that there were “no indication^] that [FCI] is making sufficient progress in recovering lost time.” Id. at A5; see also Compl. ¶ 16.

On April 28, 2015, FCI invoiced USACE for a progress payment in the amount of $33,997.00. See Compl. ¶ 53. The progress payment was to reimburse FCI for the cost of performance and payment bonds it obtained in February 2015. Id. at 52-53. FCI then responded to USACE’s Letter of Concern on May 8, 2015, arguing that USACE had not “accurately represented] [its] performance on the project” because it “identi-fie[d] old issues that have since been overcome.” Def.’s Mot. App. at All. FCI also contended that the notice “appearefd] to be written in a vindictive manner.” Id.

On May 14, 2015, USACE issued an Interim Unsatisfactory Performance Appraisal identifying six major unresolved performance issues. Id. at A12-13; see also Compl. ¶¶ 16-17. Two weeks later, on May 28, 2015, the agency followed up with a Cure Notice, which stated that USACE considered FCI’s “failure to progress satisfactorily as a refusal to prosecute the work with the diligence that will ensure its completion within the time specified in the contract.” Def’s Mot. App. at A16; see also Compl, ¶ 20. The agency noted that FCI had not “sufficiently demonstrated its plan to perform 20% of the construction, as required by the contract” or “completed any mobilization or any physical work at the site.” Def.’s Mot. App. at A17. As a result, USACE warned FCI that it “m[ight] terminate this contract for default” if FCI failed to cure the deficiencies within ten days. Id. at A16.

FCI responded to the Interim Unsatisfactory Performance Appraisal and the Cure Notice on June 8, 2015. Id. at A19-38; see also Compl. ¶ 23. It claimed that “the basis for the Cure Notice [was] factually incorrect,” and argued that it. was attempting in good faith to perform and that the performance delays were justified by circumstances beyond its control. See Def.’s Mot. App. at A20-22. It also contended that it still had adequate time to meet the contract’s completion date. Id. at A30, A33, A38. FCI also noted that it “strongly disagree[d]” with the interim performance evaluation and “formally requested]” its withdrawal. Id. at A35, A38. On June 29, 2015, FCI again requested that the interim unsatisfactory evaluation be withdrawn, arguing that it contained inaccuracies and inconsistencies and that USACE' did not adhere to the proper evaluation methodology or best practices guidelines. Id. at A49-50.

*792 On July 6, 2015, USACE issued a Show Cause Notice stating that it was considering terminating FCI’s contract for default. Id. at A51; see also Compl. ¶ 29. The agency gave FCI ten days to present mitigating circumstances demonstrating that its failure to perform arose out of causes beyond its control and without FCI’s fault or negligence. Def s Mot. App. at A51.

The show cause notice also stated that FCI’s request for withdrawal of the interim unsatisfactory CPARS evaluation was denied. Id. at 55. On July 13, 2015, the agency finalized FCI’s unsatisfactory performance evaluation. See Pl.’s Opp’n to Def.’s Mot. to Partially Dismiss Compl. (Pl.’s Opp’n) App. at A248-52, EOF No. 11-2. The final performance evaluation included comments from. FCI, in which it expressed its disagreement with the evaluation and “request[ed] that it be reevaluated.” Id. at A250-52.

FCI responded to the Show Cause Notice on July 23, stating its belief that USACE “ha[d] no intention of cooperating with [FCI],” and that USACE had breached the contract by failing in its “duty not to hinder, delay, or increase the cost of performance via its unreasonable exercise of discretion.” Def.’s Mot. App. at A58-59. FCI also requested that the contract be terminated for convenience. Id. at A59.

On July 30, 2015, USACE notified FCI that it had not processed FCI’s invoices requesting reimbursement for its payment of bond premiums because of certain irregularities in FCI’s submission. Compl. ¶ 54. According to FCI, by letter of July 81, 2015, it advised USACE that it had remedied the irregularities; nonetheless, USACE did not pay the invoices. Id. at ¶ 56.

II. USACE’s Termination of the Contract and FCI’s Communication with the CO Following the Termination

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Cite This Page — Counsel Stack

Bluebook (online)
128 Fed. Cl. 788, 2016 U.S. Claims LEXIS 1420, 2016 WL 5408137, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-contracting-inc-v-united-states-uscfc-2016.