L & D Services, Inc. v. United States

40 Cont. Cas. Fed. 76,882, 34 Fed. Cl. 673, 1996 U.S. Claims LEXIS 47, 1996 WL 18891
CourtUnited States Court of Federal Claims
DecidedJanuary 18, 1996
DocketNo. 95-245C
StatusPublished
Cited by7 cases

This text of 40 Cont. Cas. Fed. 76,882 (L & D 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
L & D Services, Inc. v. United States, 40 Cont. Cas. Fed. 76,882, 34 Fed. Cl. 673, 1996 U.S. Claims LEXIS 47, 1996 WL 18891 (uscfc 1996).

Opinion

OPINION

ANDEWELT, Judge.

In this government contract action brought pursuant to the Contract Disputes Act, 41 U.S.C. §§ 601-613, plaintiff, L & D Services, Inc., seeks $600,000 in alleged damages under a contract it entered with the United States Department of the Army (the Army) covering lawn mowing services at Fort Polk, Louisiana. This action is before the court on defendant’s motion to dismiss the complaint for lack of jurisdiction. Defendant alleges that plaintiff failed to file the instant complaint within the 12-month statutory period set forth in Section 609 of the CDA. For the reasons set forth below, defendant’s motion to dismiss is granted.

I.

Between July 5 and August 2, 1993, plaintiff presented a series of claims to the contracting officer seeking payments under the instant contract. Prior to December 1,1993, the contracting officer issued written final decisions denying certain of these claims. In each decision, the contracting officer advised [674]*674plaintiff of its right to seek review of the contracting officer’s final decision and of the applicable time limit for seeking such review. For the remaining claims, the contracting officer requested supporting documentation from plaintiff. On December 1, 1993, plaintiff submitted a comprehensive “Contractor’s Claim” (the December 1 claim) which included a “Fact” section and a “Summary of Claim” section. The “Fact” section contained 11 factual allegations, labeled (a)-(k), which detailed prior dealings between plaintiff and the Army, including the series of claims plaintiff previously had submitted to the contracting officer. The “Summary of Claim” section presented 12 distinct requests for payment, labeled (awith a dollar amount specified for each request (e.g., (a) “Increase in Acreage,” $35,000; (b) “Preparation of Claim,” $20,000; (c) “Loss of Business,” $50,000; and (h) “Constructive Change, Acceleration,” $100,000). The amount plaintiff sought in the “Summary of Claim” section included funds that plaintiff had requested in its previously filed claims.

The contracting officer initially responded to the December 1 claim on January 5,1994, in both a telephone call and a follow-up letter. The January 5 letter explained:

Following a review of the subject claim, the Government auditors have requested documentation justifying the claim be forwarded through this office.
Upon receipt of the above documentation, the claim will be evaluated.

Plaintiff failed promptly to provide the requested documentation, and on February 8, 1994, the contracting officer issued a letter that purported to be a final decision denying the December 1 claim. The letter described the government’s position with respect to each of the 11 factual allegations. For those allegations that mentioned a previously submitted claim, the contracting officer explained the status of the claim, including whether or not the contracting officer previously had issued a final decision on that claim.

In a paragraph following the discussion of the fact allegations, the contracting officer denied the monetary relief plaintiff sought in the “Summary of Claim” section and explained, as follows:

Your letter that accompanied the [December 1] claim states “Should you require additional information on this claim, please call my office or submit your request in writing.” You were contacted on January 5,1994 and it was explained to you that the Government Audit Agency had requested documentation justifying the claim be forwarded through this office. You responded that you would forward the justifying documentation. In the Government’s followup letter also dated January 5, 1994, it was explained that upon receipt of the documentation, the claim would be evaluated. To date the documentation has not been received. Since the contracting officer cannot evaluate the claim this office has no alternative but to deny the claim.

Plaintiff received the contracting officer’s February 8, 1994, letter on February 11. Three days later, on February 14, plaintiff submitted documentation that purported to support its December 1 claim. In a March 2, 1994, letter in response, the contracting officer did not reconsider her prior position and instead explained: “This office issued a final decision to deny the claim. This was explained in the final decision letter issued by this office, received by you on February 11, 1994.”

On March 18, 1994, the contracting officer terminated the contract for default. Plaintiff filed the instant action on March 20, 1995. In its complaint, plaintiff presents the same 12 grounds for monetary compensation as it did in the December 1 claim.1

II.

Section 605(a) of the CDA requires a contractor to submit claims under a government contract in writing to the contracting officer. After the contracting officer issues a decision on a claim, the contractor may seek review of that decision either through the agency [675]*675board of contract appeals (Section 607) or in a direct action in this court (Section 609). A contractor may bring a direct action in this court challenging the denial of a claim “within twelve months from the date of the receipt by the contractor of the decision of the contracting officer concerning the claim” (Section 609(a)(3)). Herein, plaintiff received the contracting officer’s purported denial of the December 1 claim on February 11, 1994, more than 12 months before plaintiff filed the instant suit on March 20,1995. Hence, if the contracting officer’s February 8, 1994, letter is what it purports to be, i.e., a final decision denying plaintiff’s December 1 claim, then plaintiff filed the instant suit out of time and this court must dismiss the complaint for lack of jurisdiction under RCFC 12(b)(1).

III.

Plaintiff contends that the contracting officer’s February 8, 1994, letter does not constitute a Section 605 decision that commences the running of the 12-month statute of limitations set forth in Section 609 because the letter failed to notify plaintiff that the contracting officer intended the letter to serve as a final decision. Plaintiff alleges that the letter lacked a tone of finality and left plaintiff with the impression that the contracting officer was open to future negotiations and would reconsider plaintiff’s claim upon receipt of additional substantiating information. Plaintiff argues that it was not until March 18, 1994, when defendant terminated the contract for default, that the contracting officer, in effect, indicated that she intended her February 8 letter to be a final decision denying plaintiffs December 1 claim.

Plaintiff’s interpretation, however, ignores the direct and unambiguous wording of the February 8 letter. The contracting officer classified her decision as a “final decision” (emphasis added) and offered , plaintiff only two possible avenues of recourse — an appeal to the board of contract appeals or a direct action in this court. There is no suggestion in the letter that the contracting officer was either soliciting information or seeking to induce negotiations.

Plaintiff relies upon the following portion of the February 8 letter to support a contrary interpretation:

Fact b: The Government requested proof of the July 5, 1993 claim and did not receive a response to its request.

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Bluebook (online)
40 Cont. Cas. Fed. 76,882, 34 Fed. Cl. 673, 1996 U.S. Claims LEXIS 47, 1996 WL 18891, Counsel Stack Legal Research, https://law.counselstack.com/opinion/l-d-services-inc-v-united-states-uscfc-1996.