Healtheon, Inc.

CourtArmed Services Board of Contract Appeals
DecidedJuly 24, 2025
Docket63145
StatusPublished

This text of Healtheon, Inc. (Healtheon, Inc.) is published on Counsel Stack Legal Research, covering Armed Services Board of Contract Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Healtheon, Inc., (asbca 2025).

Opinion

ARMED SERVICES BOARD OF CONTRACT APPEALS Appeal of - ) ) Healtheon, Inc. ) ASBCA No. 63145 ) Under Contract No. W912P8-15-C-0024 )

APPEARANCES FOR THE APPELLANT: Larry W. Caudle, Jr., Esq. Jonathan J. Straw, Esq. Kraftson Caudle PLC McLean, VA

APPEARANCES FOR THE GOVERNMENT: Michael P. Goodman, Esq. Engineer Chief Trial Attorney Jacob S. Stephens, Esq. Engineer Trial Attorney U.S. Army Engineer District, New Orleans

OPINION BY ADMINISTRATIVE JUDGE WILSON

This appeal arises from a hurricane protection project in Jefferson Parish, Louisiana. Appellant, Healtheon, Inc. (Healtheon or appellant), challenges the contracting officer’s denial of its claim for additional compensation and time extensions in connection with directed changes and differing site conditions it allegedly encountered during contract performance. The Board conducted a six-day hearing in New Orleans, Louisiana. For the reasons stated below, the Board grants appellant one additional day in time extensions and denies the remainder of the appeal.

FINDINGS OF FACT

The Contract, Modifications, and Claim Issues

1. On September 5, 2014, the New Orleans District of the U.S. Army Corps of Engineers (USACE or Corps) issued Solicitation No. W912P8-14-R-0041 for a hurricane protection project in Jefferson Parish, Louisiana (project) (R4, tab 3 at COE000340).

2. Specifically, the project required the awardee to construct submersible electric pumps, diesel generators, fuel tanks, a pre-engineered metal building system (metal building), a concrete emergency shelter building (safehouse), and perform other related work (id. at COE000348-49). 3. On April 10, 2015, the Corps awarded Contract No. W912P8-15-C-0024 (contract) to Healtheon (id. at COE000165).

4. The contract incorporated by reference the following clauses from the Federal Acquisition Regulation (FAR): 52.233-1, DISPUTES (MAY 2014); 52.236-2, DIFFERING SITE CONDITIONS (APR 1984); and 52.236-8, OTHER CONTRACTS (APR 1984) (R4, tab 3 at COE000184). The contract also incorporated the full text of FAR 52.243-4, CHANGES (JUN 2007) (id. at COE000197).

5. Healtheon segmented the project into three phases of work:

a. Phase 1: Primary installation of the platform piling and re-grading of existing and new rip-rap stone;

b. Phase 2: Construction of the platform, installation of the generator building, and demolition and replacement of the first three of seven electric pumps;

c. Phase 3: Demolition and replacement of the remaining four pumps, installation of the emergency shelter building, installation of the jib crane and removal of equipment from the existing platform, general building finishes, and final site work.

(Joint Statement of Undisputed Material Facts (JSUMF) ¶ 4)

6. In accordance with the contract, appellant was required to “commence work . . . within 10 calendar days after the date [Healtheon] receives the notice to proceed . . . [and] complete the entire work ready for use not later than 363 [calendar days]” (R4, tab 3 at COE000185). USACE issued the notice to proceed on April 30, 2015 (app. supp. R4, tab 2). Given this, appellant was required to complete performance by April 27, 2016 (id.; R4, tab 3 at COE000185).

7. The contract also noted that the 363 days allotted for project completion reflected the government’s best estimate of the shortest reasonable performance period, and that appellant was obligated to do whatever was necessary, including hiring multiple crews, working overtime, and overseeing concurrent operations, to complete the work within the allotted time period without equitable adjustment (R4, tab 3 at COE000185).

8. Throughout contract performance, the government issued 13 modifications to the contract. In accordance with these modifications, the contract completion date was extended 63 days to June 29, 2016 (R4, tabs 6-8, 16-17).

2 9. The table below summarizes the content of the modifications for the project.

Mod Change in Change in Contract Rule 4 Mod Date Description No. Contract Time Price Tab Rip-Rap Differing Site A0001 10/19/2015 Condition 0 NTE $30,000.00 5 Weather Days: 4/30/15 - A0002 3/23/2016 9/30/15 3 $0.00 6 Weather Days: 10/1/15 - A0003 5/13/2016 12/31/15 7 $0.00 7 Weather Days: 1/1/16 - A0004 7/11/2016 4/30/16 6 $0.00 8 A0005 6/14/2016 Fuel Vents & Piping 0 NTE $8,500.00 9 Changes Rip-Rap in Berm Differing A0006 11/15/2016 Site Condition 0 $102,687.08 10 Electrical A0007 11/2/2016 Modifications/Changes 0 NTE $65,000.00 11 Contaminated Soil Differing A0008 12/14/2016 Site Condition 0 NTE $5,000.00 12 A0009 5/19/2017 Gantry Crane Change 0 NTE $0.00 13 A00010 8/11/2017 Louver Screens Change 0 $23,006.76 14 Pipe Piles & Rip-Rap A00011 8/21/2017 Quantity Variations 0 -$60,695.82 15 A00012 6/7/2018 CLIN 0023 Gantry Crane 0 -$9,730.33 16 Change CLIN 004 480V/Wiring Trough & A00012 6/7/2018 Disconnect Switches 12 $0.00 16 A00012 6/7/2018 CLIN 0018 Fuel Vents & 5 $26,410.99 16 Piping Changes CLIN 0011 Electrical A00012 6/7/2018 Modifications/Changes 7 $86,250.78 16 CLIN 0014 Contaminated Soil Removal (Differing A00012 6/7/2018 Site Condition) 1 $9,207.13 16 3 Weather Days: 5/1/16 - A00013 8/30/2018 3/20/17 22 $0.00 17 Totals (excluding undefinitized NTE amounts) 63 $177,136.59

It should be noted that under Mod A00012, CLIN 004, USACE awarded 12 non-compensable additional days.

10. On June 10, 2019, USACE issued a letter stating that contract performance was complete. Specifically, the letter stated, “[a]ll contract work was performed in accordance with approved plans and specifications and meets the design criteria.” (App. supp. R4, tab A26 at COE038653)

11. Complete performance required the completion of several 1 smaller construction and maintenance activities set forth within the specifications. These subprojects included: (1) metal building; (2) metal building louvers; (3) 480V service; (4) rip-rap; (5) crane; (6) fuel system piping; (7) electrical modifications; and (8) contaminated soil.

Metal Building

12. Part of the project involved the procurement and erection of a metal building to house two generators that could operate the electric water pumps at the project site during an electrical outage. Section § 13 34 19 of the contract’s specifications, Metal Building Systems, included the following relevant parts:

1.1 SCOPE

The work covered by this section consists of furnishing all plant, equipment, labor and materials, and performing all operations in connection with the design, fabrication, transportation and installation of a metal building system (Generator Building) and appurtenances. Mechanical,

1 There are two additional subprojects appellant completed to achieve complete performance for which it does not seek any damages or time extensions: the construction of an emergency shelter building and the provision of certain pumps and discharge pipes (R4, tab 1 at COE0000007, COE000076, COE000101; see also JSUMF ¶¶ 181-94). Because appellant does not seek any relief in connection with these items, the Board will not within this decision delve into the merits of any arguments appellant set forth for these subprojects. 4 electrical and plumbing components for the building are covered under the applicable mechanical, electrical and plumbing specification sections.

...

1.3 REFERENCES The publications listed below form a part of this specification. . . .

AMERICAN SOCIETY OF CIVIL ENGINEERS (ASCE) ASCE/SEI 7 (2010) Minimum Design Loads for Buildings and Other Structures, Including Supplement No. 1

METAL BUILDING MANUFACTURERS ASSOCIATION (MBMA) MBMA MBSM (2002) Metal Building Systems Manual

1.4 DESIGN REQUIREMENTS

1.4.1 Structural Performance

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