J.A.M. Construction Services, Inc.

CourtArmed Services Board of Contract Appeals
DecidedJune 2, 2026
Docket63378, 64226, 64439
StatusPublished

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Bluebook
J.A.M. Construction Services, Inc., (asbca 2026).

Opinion

ARMED SERVICES BOARD OF CONTRACT APPEALS Appeals of - ) ) J.A.M. Construction Services, Inc. ) ASBCA Nos. 63378, 64226, 64439 ) Under Contract No. N69450-16-D-0605, ) T.O. N69450-20-F-1531 )

APPEARANCE FOR THE APPELLANT: David Charitat, Esq. Widerman Malek, PL Melbourne, Florida

APPEARANCES FOR THE GOVERNMENT: Allison M. McDade, Esq. Navy Chief Trial Attorney Billy B. Ruhling, II, Esq. Elizabeth C. Tosh, Esq. Trial Attorneys

OPINION BY ADMINISTRATIVE JUDGE STINSON ON GOVERNMENT’S MOTIONS TO DISMISS FOR FAILURE TO STATE A CLAIM UPON WHICH RELIEF CAN BE GRANTED AND/OR MOTION TO STRIKE

Pending before the Board are two motions filed by the government seeking dismissal of portions of the three consolidated appeals filed by appellant J.A.M. Construction Services, Inc. (JAM): (1) an April 24, 2025, partial motion to dismiss in ASBCA No. 63378 for failure to state a claim upon which relief can be granted and/or a motion to strike, and (2) a January 26, 2026, motion to dismiss JAM’s recently-filed appeal, ASBCA No. 64439, also for failure to state a claim upon which relief can be granted. 1 The government challenges the sufficiency of claims JAM submitted to the government pursuant to the Contract Disputes Act (CDA), 41 U.S.C. §§ 7101-7109, wherein JAM asserts government caused excusable delay as an excuse for challenging the government’s termination of its contract for default and assessing JAM liquidated damages. The government asserts that the Board lacks authority to review JAM’s allegations of government-caused delay as an affirmative defense because JAM failed to comply with requirements of the CDA and the Federal Acquisition Regulation (FAR).

1 Because this decision concerns two separately filed motions to dismiss, as well as corresponding responses by appellant, we include parenthetically the filing dates for those documents to distinguish between the various pleadings. STATEMENT OF FACTS (SOF) FOR PURPOSES OF THE MOTION

Contract Award and Procedural Background

1. These appeals arise under a Design-Bid-Build, Firm-Fixed Price, Indefinite Delivery/Indefinite Quantity, Multiple Award Construction Contract No. N69450-16- D-0605, between JAM and the Naval Facilities Command (NAVFAC) Southeast (R4, tab 1 at 1-2). On March 6, 2020, NAVFAC Southeast issued JAM Task Order No. N69450-20-F-1531 (the “task order”) under the contract, in the amount of $2,087,844, for construction of an elevator lobby addition to Building 2945 at Naval Air Station Whiting Field located near Milton, Florida (R4, tab 2 at 45-49). 2 The task order performance period was 275 calendar days (id. at 5).

2. On September 1, 2021, the government issued JAM a show cause notice (R4, tab 9), to which appellant’s former counsel, Edward Kinberg, responded, proposing a no-cost termination for convenience and allowing the Navy “to keep the approximately $50,000 in retainage it has been holding” (R4, tab 10 at 83, 87). JAM’s response did not request a contracting officer’s (CO) final decision (COFD) (R4, tab 10). On November 19, 2021, JAM sent a second letter in response to the Navy’s September 1, 2021, show cause notice, stating JAM’s position that “it may be unrealistic to continue this project as a whole, to meet the schedule or to perform in accordance with JAM’s estimated costs,” and offering to enter a bilateral modification “addressing the time and cost issues” or, alternatively, requesting that “the contract be terminated for convenience with a termination for convenience being the most appropriate option” (R4, tab 11 at 89-90). Again, JAM’s response neither requested a COFD nor contained a CDA certification.

3. By letter dated January 12, 2022, the government responded to JAM’s September 9, 2021, and November 19, 2021, letters, stating that “no termination for convenience will be considered,” and that a “cure notice will be issued shortly” (R4, tab 13 at 96). On January 14, 2022, the CO issued a cure notice, to which JAM responded on January 21, 2022 (R4, tabs 15 at 100, 16 at 101-02). The government issued a second show cause notice on March 24, 2022, to which JAM responded on March 31, 2022 (R4, tabs 17, 18 at 106-08). The government terminated the contract and the task order for default on May 24, 2022 (R4, tab 19 at 145).

2 Documents in the supplemental Rule 4 file are stamped “GOV” followed by Bates numbers beginning with zeros. We cite to these Bates numbers, omitting “GOV” and the initial unnecessary zeros. 2 ASBCA No. 63378 – Termination for Default

4. On August 10, 2022, JAM appealed the COFD dated May 24, 2022, which the Board docketed as ASBCA No. 63378. On September 26, 2022, JAM filed its complaint, asserting that the government’s “hardline and unforgiving” review and processing of JAM’s submittals delayed its completion of the contract task order (compl. dtd. September 26, 2022, ¶¶ 116 – 125), and that the Government failed to account for excusable delays to the critical path of the project (id. at ¶¶ 124 – 134). JAM sought conversion of the default termination to one for the convenience of the government (id. at ¶¶ 43, 134).

April 1, 2025, COFD - Liquidated Damages

5. On February 28, 2025, the CO issued a demand for payment in the amount of $1,155,750 for liquidated damages calculated based upon the difference between the task order completion date of December 10, 2020, and the date of the CO’s letter demand - a total of 1,541 days multiplied by the daily liquidated damages rate of $750 (R4, tab 28). The demand letter stated that “[t]he Government retains the right to reissue this demand for payment as part of a final decision pursuant to FAR 32.605 should payment not be made by the contractor within 30 days from the date of this letter” (id.). On April 1, 2025, the CO issued a COFD assessing liquidated damages as set forth in the CO’s February 28, 2025, demand letter (R4, tab 29 at 24679).

Government’s First Motion to Dismiss and/or Strike – ASBCA No. 63378

6. On April 24, 2025 - over two and half years after JAM filed the appeal and just less than four months before an August 4, 2025, hearing was scheduled to commence - the government filed a partial motion to dismiss for failure to state a claim and/or motion to strike in ASBCA No. 63378, challenging that portion of JAM’s appeal asserting government caused delay or excusable delay as an affirmative defense (gov’t mot. at 1, 8-9 (April 24, 2025)). The government posited that JAM had not submitted to the CO a claim for government caused delay or excusable delay requesting a COFD (id. at 9).

7. On June 2, 2025, JAM filed its response in opposition to the government’s motion (app. resp. at 1 of 6 (June 2, 2025)). 3 After discussions with the parties, the Board issued an Order dated July 30, 2025, holding in abeyance a decision on the government’s April 24, 2025 motion, based upon appellant’s statement that it would

3 The pages of JAM’s June 2, 2025, and March 6, 2026, responses to the government’s April 24, 2025, and January 26, 2026, motions to dismiss are unnumbered. Citations to that filing are to the page numbers as designated by PDF reader. 3 soon submit a claim to the CO for a COFD which, presumably, would satisfy the issues presented in the government’s motion.

ASBCA No. 64226 – Liquidated Damages

8. On June 27, 2025, JAM appealed the April 1, 2025, COFD seeking liquidated damages, which the Board docketed as ASBCA No. 64226, and consolidated with ASBCA No. 63378.

JAM Submission of “Formal Claim” Dated August 1, 2025

9. After much discussion between the parties and conference calls with the Board, appellant promised to submit to the CO additional claims and documents. On August 1, 2025, JAM submitted to the CO what it termed a “Formal Claim” (R4, tab 30).

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J.A.M. Construction Services, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/jam-construction-services-inc-asbca-2026.