Federal Electric Corp. v. United States

486 F.2d 1377, 202 Ct. Cl. 1028, 1973 U.S. Ct. Cl. LEXIS 97
CourtUnited States Court of Claims
DecidedOctober 25, 1973
DocketNo. 166-72
StatusPublished
Cited by8 cases

This text of 486 F.2d 1377 (Federal Electric 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
Federal Electric Corp. v. United States, 486 F.2d 1377, 202 Ct. Cl. 1028, 1973 U.S. Ct. Cl. LEXIS 97 (cc 1973).

Opinions

KttNzig, Judge,

delivered the opinion o'f the court:

Plaintiff Federal Electric Corporation (FEC) presents [1031]*1031a five-count claim for relief in this case involving an indefinite quantity contract between EEC and the Government:

Cownt I requests a Wunderlich Act (41 U.S.C. §§ 321, 322 (1970)) review of an adverse decision by the Armed Services Board of Contract Appeals (the Board) ,1

Cowrit II asserts the Government breached the contract by insisting plaintiff perform following plaintiff’s purported revocation.

Cownt III asserts the Government breached the contract by improperly reprocuring under the contract for another supplier’s account.

Cownt IV alleges a fifth amendment taking of property as a result of the Government’s action described in count II.

Cownt V alleges a fifth amendment taking of property as a result of the Government’s action described in count III.

Plaintiff moves for summary judgment on counts I through III, while the Government cross-moves for summary judgment on these three counts and moves for summary judgment on counts IV and V.

We hold that the Board’s conclusion in favor of the Government withstands Wunderlich review (count I). We further hold that plaintiff’s arguments gain no greater credence by casting the dispute in terms of a breach of an implied-in-fact contract (counts II and III). Thus, our legal conclusions in favor of the Government under Wunderlich review equally dispose of plaintiff’s breach claims. Accordingly, the Government’s motion for summary judgment on counts I, II and III should be granted, and the plaintiff’s motion should be denied.

Having so concluded, it is unnecessary for the court to discuss plaintiff’s fifth amendment argument (counts IV and V). Only if the contract had been held unenforceable or the reprocurement erroneous would plaintiff possibly have had an argument that its performance under such conditions constituted a taking without just compensation. Accordingly, the Government’s motion for summary judgment on counts IV and V should be granted.

[1032]*1032I

Bachground

FEC responded to an Air Force Request for Proposal (RFP) for tlie production and delivery of five types of mobile generator sets of varying sizes and capacities. The RFP called for an indefinite quantity contract with, a minimum of 453 and a maximum of 3600 generators to be ordered within a 12-month period.2 On December 17, 1965, the contract (AF 04(606)-15369) was approved by an authorized representative of the 'Secretary of the Air Force. Thereafter, on December 20, 1965, the Air Force mailed an official acceptance of plaintiff’s proposal and at the same time issued the first delivery order for the minimum quantity. On January 11, 1966, the Air Force issued a second delivery order for an additional six generators.

Subsequent to receipt of the first two orders, plaintiff realized that it had made some substantial errors in its response to the RFP which were resulting in unanticipated losses. Plaintiff had anticipated a small loss on the contract, but not to the extent that became apparent once production began. After meeting with the appropriate Air Force officials, plaintiff notified the Government by letter dated March 29, 1966 that it considered the contract unenforceable with respect to all future unordered goods. The contractor further asserted that its offer to supply the Government up to 3600 generators constituted a revocable offer by plaintiff for those units not yet ordered by the Government. In accordance with this position the contractor advised the Government as follows:

[1033]*10331. Federal Electric Corporation hereby withdraws its offer to supply the unordered generators under Contract AF 04(606)-15369 at the prices quoted in the contract.
2. Notwithstanding the above, should the Government deem that the offer of Federal Electric Corporation, as contained in Contract AF 04(606)-15369, is irrevocable and, as a result thereof determines to place additional orders for generators, then Federal Electric Corporation will promptly proceed to manufacture the unit so ordered under protest and without prejudice to its rights.
3. 'Should, as a result of subsequent actions by FEC and/or the Government, it be determined that FEC’s position is correct, as defined above, an equitable adjustment shall be made in accordance with the “Changes” and/or “Extras” clauses of the aforementioned contract.
4. Production under future orders for additional generators will not be deemed as a waiver of FEC’s rights to recover the losses it experiences in supplying the generators because of mistakes made by FEC in bidding contract AF 04(606)-15'369.
•5. FEC further asserts that its actions herein are taken solely for the purpose of protecting FEC’s legal rights and that nothing herein should be deemed in any manner whatsoever as a refusal to perform pending resolution of the dispute or disputes between the parties hereto or in any way serve as grounds for terminating the contractor’s right to proceed.

Subsequent to FEC’s letter of March 29, 1966, the Air Force issued the following orders:

Order number Dale Quantity
3 March. 30, 1966___ 292
4 April 16, 1966_ 662
5 May 10, 1966_ 8
6 June 13, 1966_ 101
7 June 14, 1966_,___ 199
8 August 17, 1966...... 43
9 November 7, 1966_ 443
10 December 9, 1966_ 426

Plaintiff objected to receipt of each of these and, with the exception of orders number 9 and 10, individual appeals were taken from adverse decisions of the contracting officer re[1034]*1034garding plaintiff’s obligation to deliver the items.3 Additionally, plaintiff objected to orders four and six on the separate basis that they had been expressly made to cover generators ordered but never delivered under a different contract with the Bogue Electric Company (Bogue) and, therefore, intended to mitigate that defaulting contractor’s damages. Throughout this period, plaintiff adhered to its position, as outlined in the March 29, 1966 letter, that it would continue to perform, but under protest.

Plaintiff’s appeals from the decisions of the contracting officer were consolidated before the Board. The Board decided for the Government, concluding:

(1) That the FEC contract came into effect on December 20, 1965, simultaneously with defendant’s placing of the minimum order and, hence, was enforceable ab initio. Plaintiff was thus bound to supply all orders placed under the contract at the prices set forth therein.
(2) The contracting officer was entitled to issue orders under the subject contract to accomplish the reprocurement for the account of Bogue.

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

Related

Flink/Vulcan v. United States
63 Fed. Cl. 292 (Federal Claims, 2004)
Abatement Contracting Corp. v. United States
58 Fed. Cl. 594 (Federal Claims, 2003)
CJP Contractors, Inc. v. United States
45 Fed. Cl. 343 (Federal Claims, 1999)
Chemithon Corp. v. United States
30 Cont. Cas. Fed. 70,908 (Court of Claims, 1983)
Dot Systems, Inc. v. United States
30 Cont. Cas. Fed. 70,110 (Court of Claims, 1982)
E. Walters & Co. v. United States
576 F.2d 362 (Court of Claims, 1978)
Timber Access Industries Co. v. United States
553 F.2d 1250 (Court of Claims, 1977)
Eriez Magnetics Corp. v. United States
209 Ct. Cl. 673 (Court of Claims, 1976)

Cite This Page — Counsel Stack

Bluebook (online)
486 F.2d 1377, 202 Ct. Cl. 1028, 1973 U.S. Ct. Cl. LEXIS 97, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-electric-corp-v-united-states-cc-1973.