Intercontinental Manufacturing Co. v. United States

31 Cont. Cas. Fed. 72,157, 4 Cl. Ct. 591, 1984 U.S. Claims LEXIS 1483
CourtUnited States Court of Claims
DecidedFebruary 17, 1984
DocketNo. 57-81C
StatusPublished
Cited by8 cases

This text of 31 Cont. Cas. Fed. 72,157 (Intercontinental Manufacturing 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
Intercontinental Manufacturing Co. v. United States, 31 Cont. Cas. Fed. 72,157, 4 Cl. Ct. 591, 1984 U.S. Claims LEXIS 1483 (cc 1984).

Opinion

OPINION

WIESE, Judge:

In proceedings before the Armed Services Board of Contract Appeals (the board) plaintiff, a Government contractor, sought recovery of unanticipated performance costs allegedly caused by defective Government-furnished specifications and drawings and also by the Government’s failure to disclose superior knowledge. From the board’s denial of relief, this appeal was brought. The contractor contends that the decision below1 is not entitled to finality under the relevant statute, 41 U.S.C. §§ 321, 322 (1976) (the Wunderlich Act) because it contains errors of law as well as factual determinations that lack the support of substantial evidence. Plaintiff has moved for summary judgment; the Government opposes and has filed a cross-motion seeking affirmance of the administrative decision. Upon an evaluation of the case in light of the parties’ briefs, relevant portions of the administrative record and the oral arguments of counsel, the court concludes that the result'reached below is correct.

FACTS

On August 12, 1970, the Naval Ordnance Systems Command awarded Intercontinental Manufacturing Company (herein also “IMCO” or plaintiff) a $629,000 contract for the manufacture, pursuant to Government specifications and drawings, of sea mine [593]*593cases2 and related parts including tail cover assemblies. The award was made on the basis of a competitive solicitation limited to bidders whose capabilities had been verified through a preceding technical evaluation conducted as part of the same procurement.

During the course of contract performance, IMCO encountered various difficulties in the fabrication of the sea mine cases that significantly increased expected costs. These difficulties were presented to the board as nine separate claims. The theory of entitlement (for all the claims save one) was the contractor’s rightful (but detrimental) reliance upon the Government’s drawings and specifications and the Government’s failure to timely alert the contractor to known fabrication difficulties and their solutions. The claims in question are the following:

Finish Claim: The specifications required that certain of the mines’ surfaces be finished to a 63 RMS or micro-inch finish. The contractor found that, because of the particular characteristics of the specified grade of steel (commercial grade denominated as AISI 1010 to 1025) it was not possible to consistently achieve the required finish through machining methods alone. That is, because of surface imperfections as well as imbedded impurities (both being known characteristics of the particular grade of steel), the metal did not always machine smoothly; therefore, plaintiff had to manually apply an abrasive cloth to the metal surface while the piece was being machine rotated. The claim is for the extra costs associated with this hand sanding — an effort plaintiff characterizes as a “non-production” technique.

Material Claim: In addition to its inability to consistently achieve an acceptable machine finish because of the steel’s characteristics, the contractor also experienced other processing difficulties for essentially the same reasons. For example, “pipings” or laminations in the steel caused blowouts during the automatic welding process. Gas pockets, porosities and slag inclusions randomly dispersed throughout the steel caused additional weld defects. Moreover, some welds cracked because of uneven cooling where dissimilar thicknesses of the steel had been welded together. These problems required repair by hand welding. Aside from welding difficulties, the metal’s characteristics also caused problems in other machining operations, such as tapping, which required additional hand finishing. Again, as with the Finish claim, the premise of the Material claim was the specified steel’s unsuitability for fabrication with the use of standard production techniques — a limitation which the contractor sees as the hallmark of a defective specification.

Strongback Claim: Another claim that has its origins in material-based production restrictions is the Strongback claim. The “strongback” is a long bar welded to the top of each mine shell, that is, along a section of the unit’s lengthwise centerline. The strongback includes drilled and tapped holes into which lifting lugs are inserted. Although IMCO had satisfactorily manufactured similar strongbacks with the same thread design in other contracts (not involving the same metal, however), it found in' this instance that it could not accomplish the tapping operation exclusively by the use of standard machining operations; in fact, for the greater portion of the thread cutting operation, hand tapping was necessary. The claim is for the extra costs incurred in consequence of this unanticipated hand tapping operation.

Tail Ring Claim: In the aft end of the mine case, there is a steel band called the tail ring. Required machining operations on this ring included a counterbore along its inside diameter, tapped bolt holes uniformly distributed around the outer flange and [594]*594four rounded “V” shaped slots, each 90 degrees apart, also cut into the outer flange. The contractor found that, in cutting the “V” shaped slots, the concentricity of the counterbore became distorted: that is, the cutting operation caused a slight inward bulging which put the counterbore “out-of-round”. In order to correct this problem, plaintiff was forced to add a hydraulic jacking operation to restore the ring to its required roundness. The claim is for the extra costs of this jacking operation and for the additional reinspection procedures likewise required.

Arming Well Claim: Another claim involving unanticipated distortion and reworking of a counterbore tolerance is the Arming Well claim. As the name implies, the “arming well” refers to a cavity, located in the forward section of the mine shell, that houses an electronic arming device. Access to the cavity is through a 5.502-inch diameter hole. Surrounding this access hole is a 5.525-inch counterbore designed to accept an “0” ring. Six %-inch holes are required to be drilled and tapped around the outer diameter of the counterbore in a circular pattern. The contractor found that the drilling and tapping of these holes in close proximity to the counterbore caused material to bulge into the outer diameter resulting in an out-of-tolerance condition. Correction of this condition required IMCO to hand work each mine case to remove the bulges and then also to reinspect the work. The claim is for this added effort.

Filler Hole Claim: As was the case with the two preceding claims, this claim too involves a problem of counterbore distortion. The “filler hole” is located in the forward bulkhead of the mine case; it is the access port through which the explosives are loaded. The hole assembly includes a counterbored ring or collar, bolt holes drilled and tapped around the outer diameter of the counterbore and metal studs of a special thread design inserted into these circumferential holes. The contract did not specify the depth to which these studs were to be seated; however, it did require that they not back-out upon removal of the hole cover during inspection. The contractor’s efforts to satisfy this latter requirement led it to seat the studs to a depth that caused some bulging of metal in the counterbore, resulting in an out-of-tolerance condition.

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Bluebook (online)
31 Cont. Cas. Fed. 72,157, 4 Cl. Ct. 591, 1984 U.S. Claims LEXIS 1483, Counsel Stack Legal Research, https://law.counselstack.com/opinion/intercontinental-manufacturing-co-v-united-states-cc-1984.