JE Dunn Construction Company

CourtArmed Services Board of Contract Appeals
DecidedAugust 1, 2025
Docket63183
StatusPublished

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Bluebook
JE Dunn Construction Company, (asbca 2025).

Opinion

ARMED SERVICES BOARD OF CONTRACT APPEALS Appeal of - ) ) JE Dunn Construction Company ) ASBCA No. 63183 ) Under Contract No. W9127S-17-D-6003 )

APPEARANCES FOR THE APPELLANT: Nicholas T. Solosky, Esq. Reginald M. Jones, Esq. Morgan M. Tapp, Esq. Fox Rothschild LLP Washington, DC

APPEARANCES FOR THE GOVERNMENT: Michael P. Goodman, Esq. Engineer Chief Trial Attorney Michael T. Geiselhart, Esq. Engineer Trial Attorney U.S. Army Engineer District, Jacksonville

Allen S. Black, Esq. Engineer Trial Attorney U.S. Army Engineer District, Little Rock

OPINION BY ADMINISTRATIVE JUDGE MCILMAIL

Appellant, JE Dunn Construction Company (JE Dunn), requests $949,054 and a 57-day compensable time extension, arising from a contract to design and construct the HVAC (heating, ventilation, and air conditioning) system serving the Guthrie Ambulatory Health Care Clinic at Fort Drum, New York. 1 JE Dunn says that the government changed the contract with respect to boilers and humidifiers, and delayed project completion by delaying the installation of “hydronic piping” by 77 days, but

1 App. br. at 1, 66. Count II of JE Dunn’s complaint alleges violations of the Prompt Payment Act. (Compl. at 7). JE Dunn does not address that count in post- hearing briefing; accordingly, that count is waived or abandoned. ECC International Constructors, LLC (ECCI), ASBCA No. 59586, slip op. at 13; 2025 WL 1357784 (Apr. 18, 2025) (citing cases), appeal docketed, No. 2025- 1978 (Fed. Cir. July 30, 2025). Consequently, the government’s April 26, 2024 motion for summary judgment upon, or dismissal of, that Prompt Payment Act claim is denied as moot. that JE Dunn mitigated 20 of those days. 2 We held a hearing in 2023. For the reasons stated below, the appeal is denied.

FINDINGS OF FACT

The government awarded the contract in 2017, and, on September 25, 2018, issued a task order to perform the work at Fort Drum. 3 The task order required the design, renovation, and construction of an HVAC system. 4 The scope of the task order includes replacement of humidifiers, boilers, pumps, hydronic piping, and coils. 5 Hydronic piping is a system of pipes that carries hot and chilled water to heating and cooling coils in HVAC equipment. 6

The work was to be completed “not later than 1145 calendar days after the date of the notice to proceed.” 7 The notice to proceed was issued on November 12, 2018. 8 JE Dunn completed the project in July 2022. 9 On February 21, 2020, JE Dunn submitted to the government its Issued for Construction (IFC) submittal. 10 JE Dunn says that the government approved the IFC, but JE Dunn does not provide the date of that approval. 11

Boilers and Humidifiers

The task order provides “[w]inter design temperature has been requested to be - 30°F.” 12 The task order also provides “[p]er UFC [Uniform Facilities Criteria] 03-410-01, all heating equipment and distribution sizing shall be designed with a 15% safety factor.” 13 Section 3-4.1 of UFC 03-410-01 states “[p]rovide no more than a

2 App. br. at 2, 6. 3 R4, tabs 1 at 2, 2 at 46. 4 R4, tab 2 at 47. 5 App. br. at 10-11 ¶ 2; see gov’t br. at 3-4. 6 App. br. at 2; see tr. 1/37. 7 R4, tab 2 at 55. 8 See gov’t br. at 5 ¶ 4 (1,145 days after November 12, 2018, is December 31, 2021). 9 Tr. 1/224. 10 App. br. at 5 (citing R4, tab 22); gov’t br. at 7, 12 ¶ 25 (citing JE Dunn R4, at 82- 100). 11 See app. br. at 11 ¶ 7. 12 App. prehearing br. at 13-14 (citing and reproducing material found at R4, tab 11 at 831 § 7); see app. br. at 14 ¶ 25 (referencing RFP); 35 & n.105 (citing R4, tab 11 at 831); gov’t br. at 1-2 & n.1 (citing R4, at 831). 13 App. prehearing br. at 16 (reproducing material found at R4, tab 11 at 793 and 886 § c.1.1.5); see app. br. at 15 ¶ 34 & n.53, 42 & n.129, 44 & n.135; (referencing

2 [1.15] safety factor for heating equipment and distribution sizing . . . for morning warmup.” 14 The contract includes U.S. Army Corps of Engineers Acquisition Instruction (UAI) 5152.236-9004, RESPONSIBILITY OF THE CONTRACTOR FOR DESIGN (MAY 2002), which provides:

(a) The Contractor shall be responsible for the professional quality, technical accuracy, and the coordination of all designs, drawings, specifications, and other non- construction services furnished by the Contractor under this contract. The Contractor shall, without additional compensation, correct or revise any errors or deficiency in its designs, drawings, specifications, and other non- construction services . . . .

...

(c) Neither the Government’s review, approval or acceptance of, nor payment for, the services required under this [C]ont[r]act, shall be construed to operate as a waiver of any rights under this contract or of any cause of action arising out of the performance of this contract. 15

On February 25, 2020, JE Dunn submitted to the government Transmittal No. 23 52 00-3, regarding “heating boilers”; the government rejected that submittal on March 10, 2020, with an “E” Code, requesting additional “boiler technical data,” including “capacities, connection sizes, fuel requirements, electrical requirements, [and] water/flow requirements,” and other data, and required JE Dunn to revise the transmittal “to include new (not reused) electrical infrastructure components.” The rejection of the submittal does not reference a safety factor, much less that JE Dunn’s boiler design provided for a safety factor of less than 15% percent. 16 Nevertheless, JE Dunn’s boiler design provided for a safety factor of less than 15% percent. 17

RFP and citing R4, tab 11 at 886); gov’t br. at 6 ¶ 7 (citing R4, at 793, 886), 28, 34-35 (citing R4, at 793); reply at 28 (citing R4, tab 11 at 793). 14 R4, tabs 4 at 111, 47 at 17 (alteration added). 15 R4, tab 1 at 37 (alteration added). 16 Id. The government says, without record citation, that “[o]n 28 April, 2020, the Government noted that the heating hot water system design did not appear to include a 15% safety factor.” Gov’t br. at 12. JE Dunn does not reply to that assertion. 17 App. supp. R4, tab 32 at 2868-69; tr. 1/127-28; tr. 1/186-87; R4, tab 10 at 634 (indicating a 2% safety factor and a 6% safety factor).

3 On March 13, 2020, JE Dunn submitted to the government Transmittal No. 23 81 00-1, regarding humidifiers; the government rejected that submittal on March 30, 2020, with an “E” Code, requiring JE Dunn to revise its humidifiers, “if needed,” to meet the “required winter design temperature [of] -30 degrees [Fahrenheit].” 18 JE Dunn had designed the humidifiers, not to negative 30 degrees Fahrenheit, but to “- 4 Degrees (F) Dry Bulb, - 5 Degrees (F) Wet Bulb, and 3 Grains per Pound Humidity Ratio.” 19

Eventually, JE Dunn complied with government’s direction “to select humidifiers for -30degF outside air and apply the 1.15 safety factor to boilers,” 20 modifying the sizing of the humidifiers to “minus 30 degrees,” 21 and redesigning the boiler system to include a 15% safety factor; 22 effectively “upsizing” both the boilers and the humidifiers. 23 Indeed, JE Dunn’s design team specifically advised JE Dunn that it was possible to design the humidifiers to the negative 30 degree Fahrenheit winter design temperature. 24

Hydronic Piping Installation

Transmittals and Mold Remediation

On April 7, 2020, JE Dunn submitted to the government Transmittal No. 23 64 26-5, its “Phase 1A-Hydronic Shop Drawings”; the government rejected that submittal on April 17, 2020, with an “E” Code, including for reasons having to do with piping insulation, not (at least not ostensibly) boilers and humidifiers:

Submit heating hot water piping components for VAV- E/6N.1-07 (1-1/4 inch pipe). Per Paragraph 6.4.4.1.3 Piping Insulation of ASHRAE 90.1, “Piping shall be thermally insulated . . . . 25

JE Dunn resubmitted the drawings on April 21, 2020, in Transmittal No.

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JE Dunn Construction Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/je-dunn-construction-company-asbca-2025.