Kemron Environmental Services, Inc. v. United States

93 Fed. Cl. 74, 2010 U.S. Claims LEXIS 272, 2010 WL 2245937
CourtUnited States Court of Federal Claims
DecidedMay 27, 2010
DocketNo. 09-147-C
StatusPublished

This text of 93 Fed. Cl. 74 (Kemron Environmental Services, 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
Kemron Environmental Services, Inc. v. United States, 93 Fed. Cl. 74, 2010 U.S. Claims LEXIS 272, 2010 WL 2245937 (uscfc 2010).

Opinion

OPINION AND ORDER

SWEENEY, Judge.

Before the court is defendant’s motion to dismiss plaintiffs complaint pursuant to Rule 12(b)(1) of the Rules of the United States Court of Federal Claims (“RCFC”).1 In this case, plaintiff alleges that government personnel prepared and issued an unfair, inaccurate, and unreasonable evaluation of its performance under a contract for environmental remediation services. Plaintiff requests that the court declare the evaluation at issue to be false and highly prejudicial, and direct that the evaluation be rescinded or revised. Contending that the court lacks jurisdiction over plaintiffs allegations, defendant argues that plaintiff fails to assert a cognizable claim under the Contract Disputes Act of 1978 (“CDA”), 41 U.S.C. §§ 601-613 (2006). For the reasons discussed below, the court grants defendant’s motion.

I. FACTUAL BACKGROUND2

A. Solicitation and Award

In 1994, the United States Army Corps of Engineers (“Corps”), Omaha District, began [76]*76monitoring and conducting soil and groundwater tests at the abandoned Lincoln Air Force Atlas Missile Site 10 (“Atlas Missile Site 10”) located in York, Nebraska. Compl. ¶ 7. The general purpose of this testing was to ascertain the extent of environmental contamination. Id. Key objectives of the testing were “to define, or delineate, the plume of groundwater contamination, to identify any continuing sources of contamination, if any, and to recommend available alternatives for remediation or site clean-up.” Id. ¶8. In December 2002, the Corps compiled the results of its testing and issued a report, “Remedial Investigation/Feasibility Study, Defense Environmental Restoration Program (DERP), Formerly Used Defense Site (FUDS), DERP Project No. B07NE009801” (“Feasibility Study”). Id. ¶ 9. The Corps issued an addendum to the Feasibility Study, “Draft Supplemental Remedial Investigation/Feasibility Study, and Hydrogen Release Compound Pilot Study” (“Draft Supplemental Feasibility Study”), in September 2003. Id.

In March 2003, the Corps issued a solicitation for up to three fixed-price, indefinite delivery/indefinite quantity (“ID/IQ”) multiple award remediation contracts on a small business set-aside competitive basis. Id. ¶ 15; accord Def.’s App. at A2. The contracts were “for a wide range of environmental remediation services, including incidental construction and incidental engineering services, at various known or suspected Environmental Remediation ... sites, in order to achieve the primary objective at most sites-regulatory closure,”3 Def.’s App. at A5, and had base periods of three years with one two-year option period, id. at A6. The Corps anticipated that individual, firm-fixed-price task orders would be issued under each contract. Id. at A5. In July 2003, the Corps awarded to Kemron Environmental Services, Inc. (“Kemron”), a New York corporation and small business concern headquartered in Virginia, contract W9128F-04-D-0019, one of the three ID/IQ remediation contracts.4 Compl. ¶¶ 3, 15; see also Def.’s App. at Al-86 (containing the Kemron contract).

On March 10, 2004, the Corps issued a notice of intent to award Task Order 0001 (“Task Order 1”), a fixed-price remediation with insurance task order concerning Atlas Missile Site 10, to one of the three small businesses selected under the ID/IQ competition. Compl. ¶ 16. Task Order 1 was a performance-based contract that focused upon end results, rather than upon specific methods. Id. ¶ 19. The task order’s performance work statement

contemplated that the contractor would expend initial effort in assessing the site conditions, followed by the submittal of its work plan to the government for review and approval. Once the government had approved the proposed work plan, the contractor was to proceed accordingly, the final objective being the attainment of “Response Complete” and “Site Closure” by the end of the contract’s period of performance on September 12,2009.5

Id. ¶ 20 (footnote added). The Draft Supplemental Feasibility Study, which was used, in part, to define the requirements of the task order solicitation, “described the site conditions in detail so that prospective offerors could develop the most suitable solutions and price them accordingly.” Id. ¶ 10. Specifically, it reported that a plume of trichloroethy-lene (“TCE”) contaminant extended beyond the eastern property boundary a minimum of [77]*772,300 feet and a maximum of 3,003 feet.6 Id. ¶ 12. Additionally, the Draft Supplemental Feasibility Study indicated that “groundwater was the only medium of concern ... and that vadose zone soil contamination was not identified in the source area.”7 Id. Kemron relied upon this information when it developed its fixed-price offer, id., having allocated approximately $100,000 toward its site assessment “with the understanding that, for the most part, it would be validating ten years of site analysis work” conducted by the Corps, id. ¶ 22.

The Corps awarded Task Order 1 to Kem-ron on June 30, 2004.8 Id. ¶ 17. According to Kemron, this task order award “was based on the mutual understanding that the site conditions were generally consistent” with those described in the Draft Supplemental Feasibility Study. Id. ¶ 21. Task Order 1 had a base value of $4,260,075, with an option valued at $821,407, id. ¶ 17, and imposed a deadline of September 30, 2009, for achieving “Response Complete” status, id. ¶ 24; accord Pl.’s Ex. 2 at A9. The Task Order 1 base price included a $613,159 insurance premium for a policy with American International Group, Inc. (“AIG”) that provided for protection against contract overruns. Compl. ¶ 18. Pursuant to the policy, AIG would cover eighty percent of cost overruns beginning after actual costs incurred reached $5,853,852. Id. The aggregate limit of the policy was $5,468,322. Id. Furthermore, the policy required that AIG approve in advance any modifications to the contract’s remedial plan. Id. The insurance coverage period of the policy extended through July 6, 2014. Id. ¶ 25.

B. Kemron’s Performance of Task Order 1

Kemron commenced' its assessment of Atlas Missile Site 10. After one year of work and expenses exceeding $1,000,000, Compl. ¶ 24, Kemron discovered that the contamination plume was approximately 23,000 feet— nearly 4.5 miles — in length, an amount that was ten times the length reported in the Draft Supplemental Feasibility Study, id. ¶¶ 13, 24; cf. supra note 6 (reporting between 2,300 and 3,003 feet of contamination). Kemron also discovered a “continuing source of contamination ... in the vadose zone soils of the site to the east and southeast of the silo.” Compl. ¶ 13; cf. supra note 7 (reporting that vadose zone soil contamination had not been detected). Kemron apprised the Corps of the conditions it encountered at Atlas Missile Site 10, indicating that those conditions would “greatly impact the approach that would have to be taken to remed-iate the site.”9 Compl. ¶ 23.

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Bluebook (online)
93 Fed. Cl. 74, 2010 U.S. Claims LEXIS 272, 2010 WL 2245937, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kemron-environmental-services-inc-v-united-states-uscfc-2010.