Kisco Co. v. United States

610 F.2d 742, 26 Cont. Cas. Fed. 83,432, 221 Ct. Cl. 806, 1979 U.S. Ct. Cl. LEXIS 309
CourtUnited States Court of Claims
DecidedNovember 14, 1979
DocketNo. 338-77
StatusPublished
Cited by13 cases

This text of 610 F.2d 742 (Kisco Co. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kisco Co. v. United States, 610 F.2d 742, 26 Cont. Cas. Fed. 83,432, 221 Ct. Cl. 806, 1979 U.S. Ct. Cl. LEXIS 309 (cc 1979).

Opinion

PER CURIAM:

This case comes before the court on plaintiffs motion, filed September 6, 1979, requesting that the court adopt, as the basis for its judgment in this case, the recommended decision of Trial Judge Robert J. Yock, filed June 25, 1979, pursuant to Rule 166(c) on the parties’ cross-motions for summary judgment, defendant, on August 15, 1979, having notified the court that it does not intend to seek review by the court of the trial judge’s recommended decision. Upon consideration thereof, without oral argument, since the court agrees with the said decision, as hereinafter set forth, it hereby grants plaintiffs motion and adopts the decision as the basis for its judgment in this case.

Accordingly, plaintiffs motion for summary judgment as to liability under Count I of the petition is granted and as to it the case is remanded to the Secretary of Labor for determination of the amount of recovery under clause 13 of the contract. Further proceedings before this court will be stayed for a period of six (6) months from the date hereof, with defendant’s counsel designated to advise the court by letter to the trial judge of the status of the remand proceedings pursuant to Rule 149(f). Attention of counsel and the Secretary is also directed to Rule 150. Plaintiffs motion for a de novo trial as to Count II of the petition is denied. Defendant’s cross-motion for summary judgment is denied as to Count I and granted as to Count II of the petition with Count II of the petition, accordingly, dismissed.

OPINION OF THE TRIAL JUDGE

YOCK, Trial Judge:

This contract dispute involves an appeal from the final decision of the Secretary of Labor, [809]*809which adopted and affirmed the decision of the Department of Labor, Board of Contract Appeals (hereinafter the Board).1 The contracting officer had attempted to partially cancel (terminate) the contract for default in April 1970, and to cancel the remaining portion of the contract for default in December 1970. The Board, however, found the cancellations for default to be invalid, but denied any recovery to the plaintiff on the grounds that the parties had agreed to a bilateral modification of the contract. In Count I of its petition, plaintiff seeks review under the well-known standards of the Wunderlich Act, 41 U.S.C. §§ 321-22; in this respect, plaintiff seeks recovery based on the termination for convenience clause of the contract. In Count II of its petition, plaintiff seeks a de novo trial to recover appropriate damages as a result of the Government’s alleged breach of its contractual obligations.

In its cross-motion for summary judgment, defendant, in Count I, requests the court to sustain the Secretary of Labor’s decision. Defendant seeks dismissal of plaintiffs claim contained in Count II.

For the reasons set forth below, it is concluded that plaintiffs motion for summary judgment under Count I should be granted. It is further concluded that plaintiffs motion for a de novo trial under Count II should be denied.

Background

The facts found by the Board or otherwise justified by the administrative record2 are hereafter set forth.

The plaintiff in this action was a small manufacturing company organized under the laws of the State of Missouri. Its plant was located near the heart of the "hard core unemployed” geographical area of St. Louis, Missouri. It employed approximately 900 people at this plant and was a supplier of cartridge cases and ammunition boxes for the United States Armed Forces.

The MA-4 contract involved was the result of an MA-4 jobs proposal submitted to the United States Department of [810]*810Labor by plaintiff on April 17, 1969. That proposal, after further negotiation, was approved by the U. S. Department of Labor Manpower Administration, and the parties entered into Contract No. 27-9-4040-000, with an effective date of May 5, 1969, and an expiration date of May 4, 1971. The basic authority for a job contract of this type was contained in the Manpower Development and Training Act of 1962, 42 U.S.C. §§ 2571, et seq.

Under the contract, Kisco was to hire 175 eligible disadvantaged persons over the course of the 2-year contract at the hiring rate of 25 employees every 2 months, commencing with June of 1969. The eligible disadvantaged persons were to be employed in entry-level positions in 14 specified occupations. The entry-level positions included that of maintenance helper, assembler, industrial truck operator, painter, spot welder, punch-press operator, shear operator, seam welder, rivet machine operator, production line welder, inspector, maintenance man, press operator, and tool machine setup man.

The contractor was to provide the MA-4 employees with on-the-job training and certain supportive services as specified in the contractor’s proposal and incorporated into the contract. These support services included initial orientation and counseling, basic classroom education (seventh grade reading level and eighth grade mathematics level), special counseling and job coaching, medical and dental services, and transportation services. In addition, Kisco agreed to provide certain training for its supervisory personnel in human relations so that its supervisors would better understand the problems of a disadvantaged employee. The training periods for the various occupational positions ranged from approximately 17 weeks for a maintenance helper to a high of 44 weeks for a tool machine setup man.

The contract also provided that a Mr. Donald N. Humphries would be primarily responsible for performance of the contract. Mr. Humphries was a subcontractor for Kisco with respect to this contract and had initially encouraged Kisco to apply for a manpower training (jobs) contract. He was involved in preparing the contract proposal for Kisco. He also set up and initially coordinated the program. His services were eventually terminated by Kisco on March 13, 1970 (effective April 13, 1970).

[811]*811This was a fixed unit price contract, and the unit by which payment was calculated was a day of employment and training for one certifiedly disadvantaged trainee. The amount of payment for each unit depended upon the number, duration, and estimated cost of the various supportive services and upon the duration and cost of the on-the-job training. The contractor was entitled to substitute for terminated employees subject to the payment term; however, the total cost of the contract was not to exceed $408,450. The payment term of the contract provided:

1. Payment. — a. Contractor shall submit certified monthly invoices. Payment shall be based on the total days for which wages were paid under each job title times the fixed unit cost per employee per day within that job title. In no event shall total payments exceed the contract amount, nor shall total payments within a job title exceed the maximum amount for that job title nor shall payments for an employee within a job title exceed the fixed unit cost per employee within that job title; said amounts specified elsewhere in this contract. Cumulative payments for a terminated employee and any substitutes therefor shall not exceed the applicable fixed unit cost per employee.

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Bluebook (online)
610 F.2d 742, 26 Cont. Cas. Fed. 83,432, 221 Ct. Cl. 806, 1979 U.S. Ct. Cl. LEXIS 309, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kisco-co-v-united-states-cc-1979.