Kenney Orthopedic, LLC v. United States

83 Fed. Cl. 35, 2008 U.S. Claims LEXIS 218, 2008 WL 3319793
CourtUnited States Court of Federal Claims
DecidedAugust 7, 2008
DocketNo. 08-0003C
StatusPublished
Cited by9 cases

This text of 83 Fed. Cl. 35 (Kenney Orthopedic, LLC 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
Kenney Orthopedic, LLC v. United States, 83 Fed. Cl. 35, 2008 U.S. Claims LEXIS 218, 2008 WL 3319793 (uscfc 2008).

Opinion

MEMORANDUM OPINION AND FINAL ORDER.

BRADEN, Judge.

On May 2, 2008, Defendant (“the Government”) filed a Partial Motion To Dismiss, asserting that the United States Court of Federal Claims does not have jurisdiction over Counts II, III, and IV of a January 2, 2008 Complaint, filed by Kenney Orthopedic, LLC (“Kenney” or “Plaintiff’), including a request for punitive damages. The court sua sponte has dismissed Count I, without prejudice, because Plaintiff failed to submit the breach of contract claim to the Contracting Officer, as required by the Contract Disputes Act of 1978, 41 U.S.C. § 605(a). In addition, the Government’s Partial Motion To Dismiss is granted.

I. RELEVANT FACTS.

A. The August 15, 2006 Contract With Kenney Orthopedic, LLC.

Kenney provides prosthetic and orthotic devices and services to the United States Government for veterans. See Compl. ¶ 1. On August 15, 2006, Kenney entered into Contract No. V249-P-0011 to provide prosthetic and orthotic services for the United States Department of Veterans Affairs (“VA”) at the Lexington, Kentucky Medical Center (“the August 15, 2006 Contract”). See Pl.Ex. A (Contract No. V249-P-0011). The August 15, 2006 Contract had a base year from August 20, 2006 to August 19, 2007, with two renewable option years. Id.

The August 15, 2006 Contract required Kenney to deliver prostheses to the VA no later than 30 calendar days after receipt of a delivery order. Id. In addition, Kenney was required to fabricate required artificial limbs in strict conformity with the “prosthetic prescription that has been provided by the VA Amputee Clinic Team.” Id. No changes could be made without prior approval and written authority from the VA Clinic Team, Prosthetic Representative, or designee. Id. Kenney also was required to measure and fit prostheses on “experienced prosthetic wearers.” Id. The VA, however, assumed responsibility for measuring and fitting first-time prosthetic users. Id. The measurement and fitting protocol was delegated to the expertise and discretion of the Amputee Clinic Team, Prosthetic Representative, Chief of Prosthetics, or a prescribed physician, on a case-by-case basis. Id. In addition, the fitting and alignment of select prostheses was to be performed under the supervision of a prosthetist, with special training or education for that purpose. Id.

B. The Contracting Officer’s December 19, 2006 Letter To Kenney Orthopedic, LLC.

On December 19, 2006, the Contracting Officer (“CO”) for the VA Tennessee Valley Healthcare System sent a letter to Kenney stating that the company was not performing in accordance with certain sections of the contract:

It has been noted that prescriptions are being altered and non-prescribed items are being provided without prior approval. Under the “General Requirements” the section of the [Cjontract for Standards of [37]*37Performance states “The Contractor shall fabricate all artificial limbs in strict conformance to the prosthetic prescription that has been provided by the VA Amputee Clinic Team. Contractors shall not add or substitute components or alter the beneficiary’s limb prescription in any way without prior approval and written authority from the VA Amputee Clinic Team Prosthetic Representative or designee[.]”

PLEx. B (emphasis omitted). Therein, Kenney also was instructed that “fabrication should not begin until the prescription is provided by the VA,” and “[t]here will be no reimbursement for non-prescribed items not authorized.” Id. Kenney was requested “[to] provide a plan to [the VA] no later than December 29, 2006 which will specify [Kenney’s] actions for correcting these deficiencies immediately.” Id.

C. The December 21, 2006 Proposed Contract Modification.

On December 21, 2006, the VA requested Kenney to amend the August 15, 2006 Contract. See PLEx. C. The proposed modification provided:

Beginning January 1, 2007, please issue the attached Patient Satisfaction Survey to all VA patients to be completed. A consolidated report of the results of these surveys must be sent to your CORT QUARTERLY. The first due date for this report will be March 31, 2007 and every quarter thereafter.

Id.

D. A Dispute Develops Between Kenney Orthopedic, LLC, And The Contracting Officer.

Kenney did not sign the contract modification, but instead, on December 22, 2006, replied to the CO’s December 19, 2006 letter, requesting additional information and documentation. See Pl.Ex. D. On January 8, 2007, the CO responded, citing a specific delivery of prosthetics that was not reviewed or approved by the VA prior to delivery. See Pl.Ex. E (“Clearly in this case of Williams 5967: Kenney Orthopedic did not follow proper procedure nor did he follow the VA prescription and he fabricated the prosthesis prior to VA approval of the quote.”) (emphasis omitted).

On January 22, 2007, Kenney filed a “formal written response” explaining that, in the ease of “Williams 5967,” the prosthetic device was delivered “two days after the prescription [for the device] was provided” by the VA. See Pl.Ex. F. Kenney, however, conceded that the “number of prosthetic socks” provided to ‘Williams 5967” was incorrect, because the prescription called for six socks, and Kenney provided twelve, ie., “the usual and customary number ... provided by Medicare as appropriate and medically necessary for proper treatment of prosthetic patients.” Id. Kenney, however, informed the VA that no reimbursement was requested for the extra socks. Id.

On February 27, 2007, the CO sent Kenney a letter “in response to [Kenney’s] request for payment of an invoice in the amount of approximately $3,900.00 for a prosthesis for Mr. Williams1 that was delivered to him on November 3, 2006.” PLEx. G. The CO claimed that “on December 20, 2006, Mr. Williams had a new prescription from the VA for a replacement prosthesis[,]” because the prosthesis provided on November 3, 2006 did not fit properly. Id. Therefore, “the claim for approximately $3,900.00 to Kenney Orthopedics will be denied based on negligence in providing an appropriately fitting prosthesis[J” Id.; see also PLEx. A (“The contractor warrants the artificial limb provided against defective material and/or workmanship for a minimum of 90 calendar days from the date of acceptance.”). The CO also advised Kenney that:

I have been made aware of several instances where veteran’s [sic] prescriptions have been altered without having prior approval and written authority from the VA Amputee Clinic Team Prosthetic Representative or designee. Mr. Kenney this process will not be tolerated anymore. There will be no reimbursement for non-prescripted items not authorized and prescriptions written prior to VA approval [38]*38of quote____If you continue to perform outside the scope of the contract I will be forced to start termination procedures.

Pl.Ex. G (emphasis in original).

E. The February 28, 2007 Proposed Contract Modification.

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Cite This Page — Counsel Stack

Bluebook (online)
83 Fed. Cl. 35, 2008 U.S. Claims LEXIS 218, 2008 WL 3319793, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kenney-orthopedic-llc-v-united-states-uscfc-2008.