GASA, Inc. v. United States

79 Fed. Cl. 325, 2007 U.S. Claims LEXIS 379, 2007 WL 4239015
CourtUnited States Court of Federal Claims
DecidedNovember 28, 2007
DocketNo. 01-642 C
StatusPublished
Cited by1 cases

This text of 79 Fed. Cl. 325 (GASA, 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
GASA, Inc. v. United States, 79 Fed. Cl. 325, 2007 U.S. Claims LEXIS 379, 2007 WL 4239015 (uscfc 2007).

Opinion

OPINION AND ORDER

SWEENEY, Judge.

Presently before the court are Defendant’s Motion for Summary Judgment and Defendant’s Renewed Motion for Summary Judgment, both filed pursuant to Rule 56 of the Rules of the United States Court of Federal Claims (“RCFC”). In this case, plaintiff contracted with the United States Army Corps of Engineers (“Corps”) to dredge certain areas of the Monongahela River. Plaintiff now seeks delay damages, compensation for the dredging and placement of certain river material, and the return of withheld liquidated damages. Because the court finds genuine issues of material fact with respect to plaintiffs delay claim, the court grants in part and denies in part defendant’s motions.

I. BACKGROUND

A. Factual History1

1. Contract Solicitation and Award

On March 20, 2000, the Corps’ Pittsburgh District issued a sealed bid solicitation for [327]*327the dredging of Braddock Locks and Dam Pool 3 Navigation Channel in the Monongahela River (“the Project”). DPFUF 111. The Project consisted of dredging the river, disposal of some of the dredged material at an approved, off-site landfill, and placement of the remaining dredged material back in the river at a different location (“in-river placement”). Id. 112. The solicitation specifically identified four areas of the river to be dredged as well as the cubic yards of material associated with each area: STA 906 + 30 to STA 922+20 (“in-river placement area”), 71,-195 cubic yards; STA 897 + 27 to STA 906 + 30 (“MU-102”), 65,455 cubic yards; STA 582 + 78 to STA 574 + 06 (“MU-59”), 27,045 cubic yards; and STA 11 + 46 to STA 18 + 66 (“MU-3”), 6,090 cubic yards. Id. 113. Only the material dredged from the in-river placement area was to be placed back in the river; the remaining material was to be disposed off-site.2 Id. The anticipated total amount of dredged material was 169,785 cubic yards. Id. H 4. The solicitation indicated that most of the contract earnings would be based on the quantity of material dredged and disposed of, except for the reimbursement for payment and performance bonds and the costs of mobilization and demobilization. Def.’s App. 21. The solicitation also indicated that contract performance was to begin within ten days of the Notice to Proceed (“NTP”) and completed within 180 days oftheNTP. Id. at 19.

The contract was to be a continuing contract, meaning that “[t]he payment of some portion of the contract price [was] dependent upon reservations of funds from future ap-propriations____” Id. at 59 (containing the Continuing Contracts clause). In the soliei-tation, the Corps allocated $5,200,000.00 for the contract for the current fiscal year and indicated that it “expected that Congress will make appropriations for future fiscal years from which additional funds ... will be reserved for this contract.” Id.

Plaintiff GASA, Inc. responded to the solicitation by submitting a bid for the Project. DPFUF 115. The Corps opened the bids, which encompassed both basic contract items and awardable option items,3 on April 20, 2000. Id. Plaintiff was the lowest qualified bidder, with a total bid of $7,668,958.45, which included a bid for the basic contract items of $6,410,559.55.4 Id. 11115-6. The Corps determined that plaintiff’s bid was fair and reasonable. PPFUF H 6.

On May 25, 2000, after the Corps opened the bids but before the Corps recommended the award of the contract, R. Scott Smiley, District Engineer for the Corps’ Pittsburgh District, DPFUF 1Í 47, wrote the following in an e-mail message to various Corps employees associated with the Project:

Although we have authority to proceed with the award of the dredging Pool 3 contract, the funds associated with it are not here. [The] approximate $16M or so in additional funds that HQTRS and LRD have committed to is anticipated to come in monthly dribbles, based upon (mistakenly, I believe) on expenditures.5
I am proposing that we [award] the Pool 3 Dredging contract with the following language in the actual award letter. If this language passes muster with you, George, I am proposing that existing contracts be modified to deobligate only what we need [328]*328thru June, and that we similarly tell each of the contractors that we will be obligating funds for the balance of the FY on a monthly basis at the beginning of each month.6
Hank and Jess, by COB tomorrow I need [a] schedule, by month, of when and how much we will need for the remainde[r] of the FY. Mike, similarly, I need this on Johnstown.
Jim and Ralph, as I see it, we need to have funds obligáted at least one month before the expenditure occurs, i.e., if we anticipate a contractor doing $1M in placement in July, we better have [$]1M obligated on 1 July or the RE has allowed the contractor to proceed with work for which he has not made funds available, which is, as I see it, a CFO violation.

Def.’s App. 180 (footnotes added).

Seven days later, on June 1, 2000, a contract specialist for the Corps, Michele R. Hutfles, recommended that the contract be awarded to plaintiff. Id. at 176. By letter dated June 6, 2000, Ronald Dunnington, the contracting officer, informed plaintiff that it had been awarded the contract in the amount of $6,410,559.55. Id. at 177. Enclosed with the notification letter was “a fully executed copy” of the contract and the payment and performance bonds. Id. The letter instructed plaintiff, per the terms of the contract, DPFUF 1112, to “return the bonds to this office within ten days.” Def.’s App. 177. Additionally, the letter indicated that, “[u]pon return to this office of the bonds, properly executed, Notice to Proceed will be issued.” PPFUF 119. The contract did not contain a specific date on or by which the Corps was required to issue the NTP. DPFUF 1114.

The June 6, 2000 notification letter also informed plaintiff of a contract modification, providing:

Reference is made to Page 00800-13, Paragraph 52.2320-4501, “Continuing Contracts”, which states that the sum $5,200,000.00 is available for payments to the Contractor during the current fiscal year. The amount of funds available has been decreased and the amount is amended to read $100,000.00. Modification No. P00001 is enclosed reflecting this change.

Id. H11. Modification P00001 contained the following explanation of the change:

To most effectively utilize the funds available on the overall Locks and Dams 2, 3 and 4, Monongahela River project, it is necessary that funds be obligated for contract payment purposes on a monthly basis for the remainder of the fiscal year. Accordingly, the amount of funds stated in the above-mentioned paragraph is decreased to $100,000.00. Additional funds will be obligated around 1 July and subsequently in early August and September consistent with what we anticipate you will earn in each of those months.

Id. At no time prior to June 6, 2000, did the Corps advise plaintiff that “funding issues” might delay the issuance of the NTP. PPFUF 1111.

2.

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Bluebook (online)
79 Fed. Cl. 325, 2007 U.S. Claims LEXIS 379, 2007 WL 4239015, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gasa-inc-v-united-states-uscfc-2007.