Financial & Realty Services, LLC v. United States

128 Fed. Cl. 770, 2016 U.S. Claims LEXIS 1787, 2016 WL 6835546
CourtUnited States Court of Federal Claims
DecidedNovember 21, 2016
Docket15-1532C
StatusPublished
Cited by5 cases

This text of 128 Fed. Cl. 770 (Financial & Realty Services, LLC 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
Financial & Realty Services, LLC v. United States, 128 Fed. Cl. 770, 2016 U.S. Claims LEXIS 1787, 2016 WL 6835546 (uscfc 2016).

Opinion

RCFC 12(b)(6); RCFC 10(c); Breach of Contract; Duty; Damages; Firm-Fixed-Price Task Order; Contract Interpretation

OPINION AND ORDER

SWEENEY, Judge

In this ease, plaintiff Financial & Realty Services, LLC (“FRS”) claims it is entitled to payments pui’suant to a firm-fixed-price task order with the General Services Administration (“GSA”) of the United States government. Defendant United States moves to dismiss FRS’s complaint for failure to state a claim upon which this court can grant relief. For the reasons set forth below, the court denies in part and grants in part the motion to dismiss.

I. BACKGROUND

FRS was awarded a firm-fixed-price task order (GS-P-07-13-UD-0028) on September 10, 2013, to provide project management services to the GSA in support of the GSA’s repairs and alterations program at its New Orleans field office. 1 Compl. 1; Compl. Ex. 3-5. The task order was awarded to FRS under its GSA schedule contract (GS-00F0056M). 2 Compl. 1; Compl. Ex. 3-5. It included two firm-fixed-price line items for the base year, and a single firm-fixed-price line item for each of the three option years. Specifically, the base year included a line item for project management services—$8,809.60 per month for twelve months, totaling $105,-715.20—and a line item for a $12,000 travel allowance. Compl. Ex. 4. The start date of the task order was October 1, 2013, and the completion, date was September 30, 2014. Id. at 3. The task order also set forth a delivery date of September 30, 2014, and a period of performance of July 29, 2013, to July 28, 2014. 3 Id. at 4. Similarly, each of the option years listed a line item for the project management services. Id. at 4-5. The first option year was priced at $8,809.60 per month for twelve months (October 1, 2014, to September 30, 2015), the second option year was priced at $8,987.20 per month for twelve months (October 1, 2015, to September 30, 2016), and the third option year was priced at $8,987.20 per month for twelve months (October 1, 2016, to September 30, 2017). Id. The total evaluated price for the services was $427,123.20 for the base year and three, option years. 4 Id. at 2, 4-5.

*773 The task order was governed by a Performance Work Statement (“PWS”) that outlined the responsibilities of both FRS and the GSA. Id. at 6-21. Under the PWS, FRS was responsible for “providing qualified personnel” who had to be approved by the GSA. Id. at 6. Sections 1.5.6, 1.5.12, and 6.3 of the PWS contemplated that the project management services would be provided on site at the GSA’s New Orleans field office by one full-time project manager. Id. at 9-10, 21. Section 1.5.12 of the PWS also mandated that an alternate be designated to act in the absence of the project manager. Id. at 10. FRS was required to “maintain an adequate workforce for the uninterrupted performance” of its responsibilities. Id. at 8-9. A position would be deemed “delinquent” if left unfilled for thirty days. Id. at 6. All FRS personnel working under the task order were, pursuant to section 4.2 of the PWS, subject to security screening requirements. Id. at 14. Specifically, personnel were required to undergo a National Agency Check with Inquiries (“NACI”) or equivalent investigation, which includes a Federal Bureau of Investigation (“FBI”) national criminal history (i.e., fingerprint) check. Id. The preliminary step of receiving a favorable fingerprint determination was necessary prior to entry on duty. Id. Section 1.5.8 of the PWS specified that NACI clearance must be' obtained within three months of the task order award and maintained “for the life of the contract.” Id. at 9.

The project manager provided by FRS was required to submit a monthly report to-the GSA contracting officer’s representative (“COR”), update the project tracking database at least weekly, manage project meetings, develop and maintain project schedules, review and comment on building and system design submissions, prepare draft inspection reports, analyze change orders, draft responses to requests for information, and participate in weekly conference calls to discuss project-related issues. 5 Id. at 17-18. Failure to submit a monthly report by the tenth of the month would result in a $600 penalty, and all other failures to meet performance standards could result in the GSA invoking its “contractual remedies.” Id.

On September 24, 2014, Amy Schissel, the project manager at the time, notified FRS’s principal, Claude Gregory, of her intention to resign effective October 9, 2014. Id. at 26; Compl. 1. Two days later, Joyce Johns, a GSA contract specialist, asked Mr. Gregory about filling the upcoming project manager vacancy and reminded him that the GSA was required to approve the replacement. Compl. 1; Compl. Ex. 27. On October 3, 2014, Ms. Johns again asked Mr. Gregory about filling the upcoming vacancy, reiterated the requirement that the GSA approve the replacement, and notified him that the GSA “intended] to exercise the option.” 6 Compl. Ex. 28; accord Compl. 2.

On October 7, 2014, Mr. Gregory forwarded the resume of Isaac Williams to three individuals: (1) Elizabeth Crawford, the contracting officer, Compl. Ex. 23-24, 33; (2) Norman Bissenden, the COR, id. at 29; Compl. 2; and (3) Ms. Johns. Compl. 2; Compl. Ex. 29-31. The next day, Ms. Johns notified Mr. Gregory that the GSA had approved Mr. Williams as project manager. Compl. 2; Compl. Ex. 32. The GSA also initiated the background check for Mr. Williams at that time. Compl. 2; Compl. Ex. 67. Ms. Schissel completed her last day of work as project manager on October 9, 2014. Compl. 2.

FRS and the GSA executed a Modification of Contract on November 3, 2014, for the first option year, adding a $12,000 travel allowance and changing the delivery date and period of performance. Compl. Ex. 24-26,33-34. The new delivery date was November 3, 2015, and the new period of performance was November 4, 2014, to November 3, 2015. Id. at 25,34.

On December 2,2014, Mr. Gregory advised Mr. Bissenden that because Mr. Williams’s background check remained pending, he was submitting the resume of Debra Lombard as a replacement candidate. Id at 35-39, 55, 73; *774 Compl. 2. Mr. Bissenden then proposed a January 8, 2015 start date for Ms. Lombard. Compl. Ex. 35, 54, 73. On December 10, 2014, after Mr. Gregory confirmed Ms. Lombard’s availability for the January 8, 2015 start date, the GSA approved her hire. Id. at 40-41, 52-53, 73; Compl. 2. Mr. Williams’s preliminary background check cleared two days later, on December 12, 2014. Id. at 42, 57, 73; Compl. 2.

Also on December 10, 2014, Mr. Gregory submitted an invoice to Mr. Bissenden for October 2014. Compl. 2; Compl. Ex. 41, 52. Mr. Bissenden replied the same day, asking Mr. Gregory to revise the invoice to reflect that Ms. Schissel was employed as project manager for only nine calendar days. Compl. Ex. 40, 52-53. On December 16, 2014, Mr. Gregory sent Mr. Bissenden a revised invoice. 7 Id. at 51. The following day, Mr. Gregory and Mr.

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128 Fed. Cl. 770, 2016 U.S. Claims LEXIS 1787, 2016 WL 6835546, Counsel Stack Legal Research, https://law.counselstack.com/opinion/financial-realty-services-llc-v-united-states-uscfc-2016.