Gresham & Co. v. United States

470 F.2d 542, 200 Ct. Cl. 97, 1972 U.S. Ct. Cl. LEXIS 157
CourtUnited States Court of Claims
DecidedDecember 12, 1972
DocketNo. 363-70
StatusPublished
Cited by49 cases

This text of 470 F.2d 542 (Gresham & Co. 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
Gresham & Co. v. United States, 470 F.2d 542, 200 Ct. Cl. 97, 1972 U.S. Ct. Cl. LEXIS 157 (cc 1972).

Opinion

Nichols, Judge,

delivered the opinion of the court:

This is a Wunderlich Act (41 U.S.C. §§ 321-22 (1964)) review case that comes before the court on the parties’ cross motions for summary judgment. The decision below is ASBCA Nos. 13812 and 13865,70-1BCA § 8318. Jurisdiction is conferred by 28 T7.S.C. § 1491. Commissioner William E. [100]*100Day, by order of the court under Kule 166(c), has reviewed the record and submitted a recommended opinion. We reach the same result as he by a somewhat different route, but have used large parts of his text and acknowledge the able assistance he has rendered.

Plaintiff entered into nine contracts between May and December 1967:

5-11-67 DSA-400-67-C-8531 to
6- 7-67 DSA-400-67-O-9325 to to
8-11-67 DSA-400-68-C-0559 i-1
8-16-67 DSA-400-68-C-0689 CO
8-30-67 DSA-400-68-C-0942 CO
10-10-67 DSA-400-68-C-1767
11-16-67 DSA-400-68-C-2467
11-28-67 DSA-400-68-C-2650
12- 8-67 DSA-400-68-C-2927

and six additional contracts between January and June 1968:

1-10-68 DSA-400-68-O-3555 22 units
2- 7-68 DSA-400-68-C-4163 7 “
3- 4-68 DSA-400-68-C-4700 160 “
4- 2-68 DSA-400-68-C-5238 5 “
5-23-68 DSA-400-68-C-6266 12 “
6-10-68 DSA-400-68-C-6556 6 “

with the United States, acting through the Defense General Supply Center (hereinafter DGSC), Eichmond, Virginia, for the manufacture and supply of 610 single tank dish-washing machines. All 15 contracts were awarded under Federal Specification 00-D-431b, as modified by Amendment 2. During the course of a Government audit in April 1968, the product quality auditor discovered that the dish-washing machines manufactured by plaintiff were not fitted with automatic detergent dispensers. Thereafter, the contracting officer determined that dispensers were required by the specifications and directed that all machines to be delivered under the six contracts must be equipped with automatic detergent dispensers. Plaintiff complied with the directive and requested an equitable adjustment under the standard Changes Clause for the increased costs incurred in furnishing the machines with dispensers. The request was denied and plaintiff’s timely appeal to the Armed Services [101]*101Board of Contract Appeals (ASBCA) was docketed ASBCA No. 13812.

Tb.e contracting officer further asserted that plaintiff’s failure to fit machines with dispensers under the previous nine contracts was a breach of its warranty to furnish goods in conformance with the specifications. Consequently, he demanded a price reduction for each machine delivered under the nine contracts which was not fitted with a dispenser. Plaintiff disclaimed any breach of warranty and appealed the contracting officer’s assessment to the Board, which docketed the case ASBCA No. 13865. In light of the common factual background and issues underlying each dispute, the Board consolidated the two appeals and following a full hearing rendered a decision on May 20,1970, sustaining both decisions of the contracting officer.

Generally stated, plaintiff now argues in this court that the 15 contracts in question, when read in light of the specifications and the contracting practice of the parties, did not when awarded require that single tank dishwashing machines be fitted with automatic detergent dispensers. Plaintiff challenges the Board’s interpretation of the contract provisions in dispute and contends that the Board committed reversible errors both in its findings of fact and conclusions of law. Thus, plaintiff asserts, the Board’s decision is not entitled to finality under the standards prescribed by the Wunderlich Act. The pertinent facts, relevant specification and amendments, and contentions of the parties are set forth below. The history of the parties’ correspondence and the plaintiff’s performance of contracts prior to those in dispute will first be discussed before deciding the merits of the parties’ arguments pertaining to the 15 contracts in controversy.

Plaintiff, a Missouri corporation with its principal place of business in Kansas City, Missouri, is a fabricator of steel, aluminum and stainless steel products. Between 1950 and 1968, it had supplied defendant with more than 6,000 single tank dishwashing machines pursuant to numerous contracts. During this period plaintiff’s engineering staff worked closely with technical personnel in the procurement agencies in the development of a commercial dishwashing [102]*102machine at a reasonable cost. Because of its extensive trade experience, plaintiff was often invited to offer its comments and recommendations on major proposed revisions to dish-washing machine specifications. Without requesting industry-guidance or assistance, defendant issued Federal Specification 00-D-431b (hereinafter referred to as specification 431b), entitled “Dishwashing Machines, Commercial (Back, Conveyor and Stationary),” on May 22, 1964. Specification 431b was later modified by the issuance of Interim Amendment 1 on September 22,1964, and Amendment 2 on November 23, 1965. The basic specification and its modifications read in pertinent part as follows:

3.2Standard product. Except as specified herein, the dishwashing machine and its component parts shall be a regular commercial product of the manufacturer or his suppliers. * * *
* * * * *
8.7.17 Detergent control. Unless otherwise specified (see 6.2), the dishwashing machine shall be fitted with an electric or electronic automatic detergent dispenser. [The language “Unless otherwise specified (see 6.2),” was deleted by Amendment 2].
3.7.17.1 Automatic detergent dispenser. The detergent dispenser shall consist or a detergent reservoir * * *.
3.7.17.2 Detergent concentration meter. When specified (see 6.2), a detergent concentration meter conforming to MIL-M-11495 and all accessories necessary for proper operation shall be supplied with each machine but not installed. * * * [Deleted in its entirety by Amendment 2].
H: tjt & He He
6.2 Ordering data. Purchasers should exercise any desired options offered herein and procurement documents should specify the following:
H: :f: sfc He H*
(l) Specify when an automatic detergent dispenser is not required (see 3.7.17). [Subparagraph (l) was deleted by Amendment 2].
(m) Detergent concentration meter, when required (see 3.17.2). [The reference should be to 3.7.17.2. Subparagraph (m) was deleted by Amendment 2].

00-D-431b was a coordinated specification which had been accepted by the General Services Administration for use by [103]*103all Federal agencies. See ASPE. 5.1101 — 1-1104-4 and 5.1106-5 (32 C.F.E.

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Bluebook (online)
470 F.2d 542, 200 Ct. Cl. 97, 1972 U.S. Ct. Cl. LEXIS 157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gresham-co-v-united-states-cc-1972.