Kellogg Brown & Root Services, Inc. v. United States

117 Fed. Cl. 1, 2014 U.S. Claims LEXIS 581, 2014 WL 2902268
United States Court of Federal Claims·Decided June 26, 2014·No. 1:12-cv-00366·Published·Cited by 2 cases

Opinion

Motion for Protective Order; discovery; document request; RCFC 26(c)(1); good cause; relevancy; overbroad; undue burden; cumulative; duplicative; timeliness; government contract

OPINION AND ORDER

CAMPBELL-SMITH, Chief Judge

The United States government (government or defendant) has filed a Motion for Protective Order, pursuant to Rule 26 of the Rules of the United States Court of Federal Claims (RCFC), seeking to be relieved of the duty to respond to plaintiffs Document Requests Nos. 3 and 4 of its Third Request for Production of Documents. Def.’s Mot. Prot. Order (Def.’s Mot.), Nov. 14, 2013, ECF No. 37, at 1. Defendant argues the requests are outside the scope of discovery, are untimely, and are irrelevant to determining the ultimate issue in the litigation — that is, whether the Award Fee Determining Officer’s deei *3 sion to issue a zero award fee was arbitrary and capricious and in breach of the parties’ agreement. See id.

In addition to defendant’s motion, the court also considers Defendant’s Appendix (DA), filed November 14, 2013, ECF No. 37-1; Plaintiffs Opposition to Defendant’s Motion for Protective Order (Pl.’s Opp’n) and Plaintiffs Appendix (PA), both filed December 2, 2013, ECF Nos. 40, 40-1; Defendant’s Reply to Plaintiffs Opposition (Def.’s Reply), filed December 12, 2013, ECF No. 41; Plaintiffs Supplemental Brief (Pl.’s Suppl. Br.), filed February 21, 2014, ECF No. 46; Defendant’s Response to Plaintiffs Supplemental Brief (Defi’s Suppl. Br.), filed February 25, 2014, ECF No. 48; and Transcript of Status Conference (Transcript), held April 14 and filed April 23, 2014, ECF No. 60.

For the reasons set forth herein, defendant’s motion is GRANTED-IN-PART and DENIED-IN-PART.

I. Background

A The LOGCAP III Contract

On December 14, 2001, the United States Army awarded Contract No. DAAA09-02-D-0007 (the LOGCAP III Contract or the Contract) to Kellogg Brown & Root Services, Inc. (KBR or plaintiff) to provide a broad range of support services. See Compl. ¶¶ 3-4, 11-12. In relevant part, starting March 2003, Task Orders (TOs) 139 and 151, issued under the Contract, directed KBR to provide “logistical services” for Operation Iraqi Freedom including, but not limited to, laundry services, convoy support operations, dining services, facilities construction, facilities management, and operations and maintenance (O & M) services. Compl. ¶¶ 12-14.

Under the LOGCAP III Contract — specifically its “H-36 Award Fee Clause” or “Clause H-36” — KBR was eligible for periodic award fees based on performance under each task order. 1 Compl. ¶ 22; see Clause H-36, ECF No. 6-2, at ¶¶ a, c. During each evaluation period, KBR was monitored by an Award Fee Evaluation Board (AFEB). Clause H-36 ¶ b. KBR, the Defense Contract Audit Agency, and the Defense Contract Management Agency also had an opportunity to submit presentations to the AFEB regarding KBR’s performance and progress. Compl. ¶23. The AFEB would then evaluate KBR’s performance by assigning adjectival ratings (Excellent, Very Good, Good, Average), which corresponded to numerical ratings from zero to 100, for the following factors: technical performance, cost performance, and management. Id. at ¶¶ 24-26. The AFEB would then make its recommendation to the Award Fee Determining Officer (AFDO) who, in turn, was empowered to either “accept the AFEB’s recommendations or make a unilateral determination on the payable award fee.” Clause H-36 11b.

On June 18-22, 2008, the Army held an AFEB to evaluate KBR’s performance under TOs 139 and 151 of the LOGCAP III Contract, for the evaluation period of January 1, 2008 through April 30, 2008. Compl. ¶ 46. The AFEB rated KBR’s overall performance under TO Í39 as 92 (out of 100) and under TO 151 as 95 (out of 100), Compl. ¶ 50, which translated to performance ratings of “Excellent,” see Clause H-36 at ¶ m. Yet, on February 19, 2010, the AFDO issued a zero award fee determination out of the possible $24,131,157 award fee pool for TO 139 and the possible $1,291,942 award fee pool for TO 151. DA 16-17 (AFDO’s Final Decision, dated Feb. 19, 2010). The AFDO attributed his denial of the performance award to: (i) “KBR’s failure to document the poor conditions of the electrical systems at the Radwa-niyah Palace Complex;” (ii) “KBR’s failure to provide notice of unsafe life, health, and safety conditions;” and (iii) “KBR’s failure to employ qualified personnel to provide electrical services.” DA 16.

On December 1, 2011, KBR appealed the AFDO’s determination by submitting a certified claim to the Contracting Officer (CO), seeking $21,432,108.80 in breach of contract damages, plus interest. Compl. ¶ 5; see also Contract Disputes Act (CDA), 41 U.S.C. *4 § 7103(a), (b) (2006) (claim process). On March 12, 2013, the CO issued his final decision denying KBR’s certified CDA claim in its entirety. Compl. ¶¶ 6, 9. The CO found “ ‘that the AFDO’s award fee determination was made in accordance with the terms of the contract and applicable law, and that no adjustment to the award fee ... [was] warranted for the period in question.’ ” Compl. ¶¶ 9, 69 (purporting to quote the CO). KBR asserts that, with the exception of the February 2010 denial at issue in this case, it has received award fees for its performance consistently from 2003 through 2011. See PL’s Status Conference Presentation, Apr. 14, 2014, at 3 (not available on ECF).

B. Breach of Contract Action

Pursuant to CDA § 7104(b)(1), KBR filed its breach of contract complaint against the government on June 8, 2012, challenging the final decision of the CO. See Compl. at *1 (introductory paragraph). Plaintiff avers that “the Army breached the LOGCAP III Contract by awarding KBR [a] zero award fee on TOs 139 and 151 for the evaluation period of January 1, 2008 to April 30, 2008.” Compl. ¶ 7. Plaintiff contends that the zero award fee decision was “based on fundamentally inaccurate information.” Compl. ¶ 7. For example, plaintiff believes that it was blamed improperly for the fatal electrocution of a soldier in a shower, a death that was attributed to faulty electrical wiring for which plaintiff bore no responsibility. See PL’s Opp’n 9-13. KBR asserts that senior government officials inappropriately pressured the CO into denying the fee award and subsequently the CO abandoned the performance award criteria and process expressly set forth in the Contract. Id. at 12. As a result, plaintiff complains, the AFDO and CO abused their discretion when they denied the award fee and, thereby, effected a breach of contract. Id. at 12-13.

C. Discovery Dispute

In May 2013, the court ordered the government to provide KBR with “copies of all documents provided to James Loehrl [(the AFDO) ] for consideration of the award fee at issue in this case,” as well as “all documents created by Mr. Loerhl setting forth and justifying his award fee decision in this case.” May 13, 2013 Order, ECF No. 22. The court also directed the parties to “confer about the completeness of this document production and the scope of further discovery necessary to advance this case.”

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Kellogg Brown & Root Services, Inc. v. United States, 117 Fed. Cl. 1, 2014 U.S. Claims LEXIS 581, 2014 WL 2902268 (uscfc 2014).

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