Gilbane Federal v. United States

United States Court of Federal Claims·Decided June 17, 2026·No. 25-1265·Published

Opinion

In the United States Court of Federal Claims GILBANE FEDERAL,

Plaintiff,

No. 25-1265

v.

Filed: June 17, 2026

THE UNITED STATES,

Defendant.

Michael A. Branca of Peckar & Abramson, P.C., Washington, D.C., argued for Plaintiff.

Ioana C. Meyer of the United States Department of Justice, Civil Division, Washington, D.C., argued for Defendant. With her on the briefs were Brett A. Shumate, Patricia M. McCarthy, and Steven Michael Mager, of the United States Department of Justice, Civil Division, Washington, D.C.

MEMORANDUM AND ORDER

In June of 2020, only a few months after the President of the United States had declared the COVID-19 pandemic an emergency, Plaintiff Gilbane Federal (Gilbane or Plaintiff) entered into Contract No. W912HN-20-C-3006 (Contract) with the Army Corps of Engineers (Corps) for the construction of a government facility located at Fort Gordon, Georgia. When disputes arose under this Contract, and after the Corps denied two of its certified claims, Gilbane appealed to separate venues: one appeal to this Court, and one appeal to the Armed Services Board of Contract Appeals (ASBCA).

The first dispute arose when Gilbane submitted a certified claim to the contracting officer (CO) on May 26, 2022, requesting compensation and a schedule extension. The claim was partially settled, but the CO denied certain contract modification preparation costs, which Gilbane

appealed to the ASBCA on September 19, 2023. The second dispute arose after Gilbane encountered delays allegedly caused by labor shortages, worker illnesses, and similar labor difficulties due to the COVID-19 pandemic. On June 7, 2024, Gilbane submitted a second certified claim to the CO seeking 61 days of excusable, non-compensable delay to the Contract completion date, in addition to contract preparation costs. The CO denied Gilbane’s second certified claim on August 6, 2024, and on July 31, 2025, Gilbane filed suit in this Court under the Contract Disputes Act (CDA) to appeal the second denial. Gilbane seeks two forms of relief in this Court: (1) sixty- one days of excusable, non-compensable delay and (2) the reimbursement of $30,537.67 in administrative costs related to proposal preparation and modification and claim preparation.

On January 9, 2026, Defendant the United States filed a Motion to Transfer and Stay Proceedings, seeking to transfer this action to the ASBCA pursuant to 41 U.S.C. § 7107(d), which permits the Court of Federal Claims to transfer cases to agency boards. Defendant contends that this Court should transfer the present action because, among other reasons, the proceedings at the ASBCA arose out of the same Contract and concern an overlapping issue. Plaintiff opposes the Motion to Transfer.

As articulated below, this Court has broad discretion when considering a Motion to Transfer under 41 U.S.C. § 7107(d). In examining the present case, all of the factors favor transfer of the action to the ASBCA. Accordingly, this Court GRANTS Defendant’s Motion to Transfer and Stay Proceedings (ECF No. 12).

STATEMENT OF FACTS 1

I. The Contract On May 31, 2019, the Corps issued Solicitation No. W912HN-19-R-3004 for the construction of a new “Cyber Instructional Facility and Network Center” at Fort Gordon, Georgia. ECF No. 1 (Complaint) ¶ 5. Plaintiff, a “full-service general contractor,” submitted its final proposal for the facility on September 13, 2019. Id. ¶¶ 2, 7. On March 13, 2020, the President of the United States declared a national emergency related to the COVID-19 pandemic. Id. ¶ 9. On June 19, 2020 (280 days after Gilbane submitted its final proposal), the Corps awarded Gilbane firm-fixed-price Contract No. W912HN-20-C-3006 that covered construction of the facility in exchange for $96,903,333. Id. ¶ 8.

Plaintiff claims that the COVID-19 emergency negatively “impacted” its work and the work of its subcontractors. Id. ¶ 13. The impacts included an “[o]verall lack of labor resources,” a concrete subcontractor’s “inability to find qualified manpower in the local area,” a “[s]maller pool of crew and supervision that were qualified to access Fort Gordon,” and “[i]ndividual worker illnesses caused by COVID-19.” Id.

On October 15, 2021, Plaintiff indicated in a monthly schedule update that the project had fallen 31 days behind schedule. Id. ¶ 15. On October 25, 2021, the Corps issued a Letter of Concern regarding schedule delays. Id. ¶ 16. Plaintiff and its subcontractors took several measures to address the delays, including overtime work, higher wages, and “out of area recruitment.” Id. ¶ 18. On January 12, 2022, the Corps issued Request for Proposal (RFP) 0027, which addressed

1 The Court accepts the facts in the Complaint as true for the purpose of resolving the Motion. See Rockwell Automation, Inc. v. United States, 70 Fed. Cl. 114, 116 n.2 (2006); see also ECF No. 12 (Motion to Transfer or Mot.) at 5 n.2 (“For this statement of facts, we rely on the allegations in Gilbane’s complaint, [and] exhibits to its complaint . . . . We respectfully reserve the right to challenge any of the facts alleged by Gilbane in the future, should this motion be denied.”).

project delays due to COVID-19, and subsequently agreed to extend the completion period to January 20, 2022. Id. ¶ 20.

Despite mitigation efforts that Plaintiff allegedly undertook, delays mounted, and Plaintiff requested 69 days of excusable, non-compensable delay on February 14, 2022. Id. ¶ 21. Plaintiff also requested $21,645.00 “for proposal preparation costs, which included time incurred by Gilbane’s Project Executive and Project Controls-Scheduler.” Id. The Corps denied that request as lacking merit on February 22, 2022; Plaintiff then provided supplemental material to support its submission. Id. ¶¶ 22, 23. On April 27, 2022, the Corps issued Unilateral Modification A000018/R00021, which granted Gilbane eight days of excusable, non-compensable delay for delays that accrued through January 20, 2022. Id. ¶ 26.

In response, Plaintiff indicated that it intended to submit a Request for Equitable Adjustment (REA). Id. ¶ 27. Plaintiff submitted its REA on March 11, 2024, seeking 61 days of excusable non-compensable delay. Id. ¶ 29. Plaintiff calculated the 61-day figure by subtracting the eight days granted by the Government from the 69 days that Plaintiff had earlier requested. Id. ¶ 29. The Corps denied the REA on March 29, 2024. Id. ¶ 30.

II. Plaintiff’s Court of Federal Claims Suit On June 7, 2024, Plaintiff filed a Certified Claim with the CO that sought relief on the same grounds as the denied REA. Id. ¶ 31; see ECF No. 1-2 (Certified Claim) at 2. In its Certified Claim, Plaintiff sought 61 “calendar days of excusable, non-compensable extension” and $30,537.67 for REA preparation costs. Certified Claim at 2. On August 6, 2024, the CO denied Plaintiff’s Certified Claim, finding “no merit” in either the sixty-one-day schedule extension or the claim for $30,537.67 in costs. ECF 12-1 (Defendant’s Appendix or Appendix) at 2 (emphasis in original). With respect to the claim for 61 days of excusable, non-compensable delay, the CO

found that Plaintiff “did not show that the days it request[ed] were excusable and attributable to COVID-19.” App. at 13. The CO denied the claim for $30,537.67 in REA preparation costs because the REA itself “lack[ed] merit.” Id. at 15. In addition, the CO determined that the contract modification preparation and execution costs that Plaintiff claimed were an attempt to “recover the same costs twice.” Id. at 15. Specifically, the CO stated that the Government believed that Plaintiff was double counting the same contract modification costs both “through its G&A rate and a second time directly as a line item.” Id. Additionally, the CO found that Plaintiff “did not segregate its REA preparation costs in any meaningful way for the [Corps] to discern which costs are REA preparation costs (allowable) versus which costs are modification proposal preparation and execution costs (not allowable).” Id. at 16.

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