Jay Cashman, Inc. v. United States

88 Fed. Cl. 297, 2009 U.S. Claims LEXIS 272, 2009 WL 2436636
CourtUnited States Court of Federal Claims
DecidedAugust 4, 2009
DocketNo. 06-101C
StatusPublished
Cited by9 cases

This text of 88 Fed. Cl. 297 (Jay Cashman, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jay Cashman, Inc. v. United States, 88 Fed. Cl. 297, 2009 U.S. Claims LEXIS 272, 2009 WL 2436636 (uscfc 2009).

Opinion

OPINION

ALLEGRA, Judge.

This case, which arises under the Contract Disputes Act of 1978, 41 U.S.C. §§ 601-13, finds its roots in a contract between plaintiff, Jay Cashman, Inc. (Cashman) and the United States to provide dredging services for a project known as the “New York Harbor, Kill Van Kull and Newark Bay Channels, Navigation Project Phase II, Contract 8 (Area 8)” — referred to as the Kill Van Kull 8 project or KVK 8. In a motion for partial summary judgment, plaintiff alleges, inter alia, that defendant used a stricter acceptance method than was specified by the contract, requiring plaintiff to dredge more material than should have been required, and thereby entitling it to an equitable adjustment. In its response and cross-motion for summary judgment, defendant claims that it required plaintiff to do nothing more than meet the stated objective of the contract — to dredge the channels to a level of forty-seven feet. It asserts that plaintiff should have clarified any supposed ambiguities about how to achieve this objective before bidding and that failing that, should not be permitted to recover now. Because the court concludes that multiple layers of genuine issues of material fact exist here, it denies plaintiffs motion and denies, in large part, defendant’s cross-motion. The court instead will set this ease for trial.

I. BACKGROUND

Plaintiff is an experienced construction contractor, which has performed dredging projects for the Army Corps of Engineers (the Corps). Dredging involves the excavation of materials, such as soil and rock, that are located under a body of water and must be removed either to deepen or maintain a navigable waterway. The deepening of a waterway by dredging below the published elevation is known as “new work.” “Maintenance dredging,” by comparison, entails removing material that has shoaled since the last time a waterway was dredged.

The Port of New York and New Jersey is the third largest port in the nation and the largest on the East Coast, through which billions of dollars of cargo pass annually. Beginning in 1985, Congress authorized a series of projects to deepen the navigational channels in this port, to meet industry demand for larger and deeper-bottomed cargo vessels to use the channels. See Supplemental Appropriation Act of 1985, Pub.L. No. 99-88, 99 Stat. 293 (1985). As part of this effort, the New York District of the Corps embarked on the KVK Project to deepen the Kill Van Kull and Newark Bay Channels that form the main artery linking the Ports of Elizabeth and Newark Bay. Phase I of the KVK project, which was substantially completed in 1995, involved a series of contracts to lower the depth of the channels to forty-two feet below mean low water (MLW). Phase II of the project, which was completed in 2004, involved a series of contracts to lower the depth of the channels to forty-seven feet below MLW.1 On May 23, 2003, Cashman was awarded the final contract in KVK Phase II, in the amount of $35,460,430.2

This last KVK Phase II contract involved “new work” dredging, requiring plaintiff to remove “hard bottom” materials such as rock, compacted gravel, and heavy clays. The project was divided into six main “acceptance areas” of varying dimensions, totaling [300]*300820,000 square yards. The specifications for the contract provided that Cashman would be required to dredge the contractually-defined area to a depth of forty-seven feet below MLW. In this regard, the specifications stated:

If during the dredging or upon completion of the post-dredging surveys and soundings, materials are found above the required depth of 47 feet, below MLW, these materials shall be removed immediately at the Contractor’s expense.

The contract provided for payment to the contractor of a fee per cubic yard of material excavated, with unit prices that differed according to the location and type of material removed. The specifications indicated that the awardee also would be compensated at the contract price for “allowable overdepth,” defined as material removed up to 1.5 feet beyond the depth of forty-seven feet. The contractor assumed responsibility for any material removed beyond this overdepth, for which it would not be compensated.3 Although the specifications permitted the contractor some flexibility in choosing the means of performance, the contractor was prohibited from using particular types of dredges (e.g., hopper and cutterhead dredges) and obliged to dredge non-rock material using a closed “environmental” bucket.

The KVK 8 contract envisioned that both Cashman and the Corps would use acoustic (also known as “hydrographic”) surveying equipment. The multibeam version of that equipment generates thousands of data points (“hits”) by bouncing sound waves off the channel bottom or underwater objects. The data is fed into a computer, which filters out extraneous data (noise) and then produces various survey products. The contract required Cashman to perform monthly surveys to determine the quantity of material dredged for progress payment purposes. In addition, it required that additional surveys be used to establish final acceptance, providing, in relevant part:

The Contractor shall perform pre-final hy-drographic sweep surveys of an entire acceptance area to verify the area is satisfactorily completed prior to final examination by the Government. The pre-final surveys shall be performed using a multitrack or multibeam survey system to insure 100% coverage of the entire acceptance area. The proposed method for performing these surveys and all equipment and programs shall be submitted for approval. The Contractor’s hydrographic surveys shall meet or exceed the survey standards listed in EC 1130-2-210 HYDROGRAPHIC SURVEYING, 1 October 1998 for Class I surveys^ 4]

Regarding this acceptance process, the same paragraph of the specifications continued—

As soon as practicable after the completion of an entire acceptance area, a final examination of the work will be conducted by the Contracting Officer at the cost and expense of the Government by acoustic sweep survey system. Should any shoals or lumps or other lack of contract depth be disclosed by this examination the Contractor will be required to remove same. The Contractor, or his authorized representative, will be notified when soundings or sweepings are to be made, and will be permitted to accompany the survey party. [301]*301The Government shall notify the Contractor of the findings of survey within ten (10) calendar days from the date the survey was performed by the Government. When the area is found to be in a satisfactory condition, it will be accepted.

Once an area of the project had been accepted, Cashman could move its equipment to other areas of the project.

The Corps Engineering Manual (a document different than the Engineering Circular referenced above), as in effect when the contract was entered, indicated that dredging contracts should specify the method that would be used to determine whether an area is dredged to the required depth.5 The contract between Cashman and the Corps, however, appears to be silent on this point.

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Cite This Page — Counsel Stack

Bluebook (online)
88 Fed. Cl. 297, 2009 U.S. Claims LEXIS 272, 2009 WL 2436636, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jay-cashman-inc-v-united-states-uscfc-2009.