Mactec, Inc. v. Bechtel Jacobs Company, LLC

346 F. App'x 59
CourtCourt of Appeals for the Sixth Circuit
DecidedSeptember 25, 2009
Docket08-5764
StatusUnpublished
Cited by8 cases

This text of 346 F. App'x 59 (Mactec, Inc. v. Bechtel Jacobs Company, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mactec, Inc. v. Bechtel Jacobs Company, LLC, 346 F. App'x 59 (6th Cir. 2009).

Opinion

OPINION

COLE, Circuit Judge.

Defendant-Appellant Bechtel Jacobs Company, LLC (“BJC”) appeals from the district court’s judgment following an eight-day bench trial. The district court awarded Plaintiff-Appellee MACTEC, Inc. (“MACTEC”) $9,844,319.82, plus attorney fees and interest, on several of its claims and denied all of BJC’s counterclaims. BJC asserts that the district court erred by: (1) finding unreliable the testimony of BJC’s primary fact witness; (2) accepting and adopting MACTEC’s expert testimony on its two largest claims; (3) rejecting BJC’s counterclaims; and (4) finding for *61 MACTEC on its third-largest claim. BJC argues that the foregoing errors warrant reversal of the judgment and remand to the district court for a new trial. For the following reasons, we AFFIRM.

I. BACKGROUND

A. Factual Background

1. The DOE/BJC Contract and the BJC/MACTEC Subcontract

a. Background

The parties’ dispute arises from alleged breaches of a subcontract for the design and construction of a hydraulic isolation system for Solid Waste Storage Area 4 (“SWSA 4”), located in the Melton Valley area of the United States Department of Energy’s (“DOE”) Oak Ridge Reservation (“ORR”). SWSA 4 contains buried radioactive waste, and in December 1997, the DOE awarded BJC a five-year, $2.5 billion Management and Integration Contract to engineer and oversee a transition toward a closure of the ORR. On April 1,1998, after a three-month phase-in period, BJC assumed responsibility for the ORR work. BJC subsequently awarded MACTEC a lump-sum, fixed-price, $12,231,283.00 Subcontract to design and construct a remediation system in accordance with the terms of the Record of Decision for Interim Actions for the Melton Valley Watershed (“ROD”) that was previously agreed upon and drafted by the DOE, the Environmental Protection Agency (“EPA”), and the Tennessee Department of Environment and Conservation (“TDEC”).

The ROD and the Subcontract required that the remediation system include the following components: (1) an upgradient divergent trench; (2) a landfill cap consisting of six inches of vent-layer stone, contour fill, three layers of geosynthetics, a protective cover, and six inches of topsoil; (3) a collection of underdrain along the alignment of the SWSA 4 tributary at the southern edge of SWSA 4; (4) a downgradient trench (“DGT”); and (5) a wastewater treatment facility that would remove contaminated water from the DGT and deposit treated water into an adjacent Intermediate Holding Pond (“IHP”). The ROD and Subcontract also required MACTEC to remove contaminated soil and vegetation from the IHP and perform wetlands restoration.

The Subcontract required MACTEC to provide BJC with a Baseline schedule (the “Baseline”) for its approval before starting work. In the context of complex construction contracts, a baseline schedule typically details the following elements: (1) the identification of the specific construction activities to be performed to complete the project; (2) cost and time estimates of each activity; (3) a determination of sequential relationships to establish the precise sequence of performance of all activities in the most efficient manner; and (4) a presentation of the sequenced activities in the form of a “network” diagram. See Philip L. Bruner & Patrick L. O’Connor, Jr., 5 Bruner & O’Connor Construction Law § 15:8 (May 2009).

The Baseline directed MACTEC to complete all field work on or before November 14, 2003. However, following the tragic events of September 11, 2001, BJC issued a suspension-of-work order, which prevented MACTEC from getting the Project underway from November 8, 2001 until October 1, 2002. Once the suspension-of-work order was lifted, the parties drafted Subcontract Modification 12 (“Modification 12”), formally extending the field-work completion date to March 31, 2004. The parties also agreed to a revised baseline schedule (the “Second Baseline”), which directed MACTEC to complete all work on the Project by October 28, 2004. The Second Baseline was essentially a revised *62 time-line for interrupted schedule elements in-process at the time of the work suspension that extended the Project-completion date by six months.

b. Scheduling requirements

The Subcontract required MACTEC to provide BJC with regular schedule updates using the Critical Path Method (“CPM”) to “show each essential activity in sequence to meet the Subcontract Schedule Milestones.... ” (Subcontract SC-3, BJC App. Vol 1, 26.) The CPM method has been described as follows:

Essentially, the [CPM] is an efficient way of organizing and scheduling a complex project which consists of numerous interrelated separate small projects. Each subproject is identified and classified as to the duration and precedence of the work. (E.g., one could not carpet an area until the flooring is down and the flooring cannot be completed until the underlying electrical and telephone conduits are installed.) The data is then analyzed, usually by a computer, to determine the most efficient schedule for the entire project. However, some items of work are given no leeway and must be performed on schedule; otherwise, the entire project will be delayed. These latter items of work are on the “critical path.” A delay, or acceleration, of work along the critical path will affect the entire project.

Haney v. United States, 230 Ct.Cl. 148, 676 F.2d 584, 596 (1982). The “critical path” has been .defined as “the longest path in the schedule on which any delay or disruption ... would cause a day-for-day delay to the project itself.... Those activities must be performed as they are scheduled and timely in order for the project to finish on time.... ” Wilner v. United States, 23 Cl.Ct. 241, 245 (Cl.Ct.1991). Because a project’s critical path continues to evolve even after work has commenced, “in order to grasp accurately the delays that a project takes on, the critical path should be updated regularly.” Wilner, 23 Cl.Ct. at 245 (citing Fortec Constructors v. United States, 8 Cl.Ct. 490, 505 (Cl.Ct.1985)).

The Subcontract set forth MACTEC’s obligations to furnish BJC with weekly updates, as follows:

SUBCONTRACTOR shall promptly inform CONTRACTOR of any proposed change in the baseline schedule and shall furnish CONTRACTOR with a revised schedule network and narrative within seven (7) days after notification to the CONTRACTOR of the requested change. The CONTRACTOR shall approve any changes prior to the revised schedule being used as the [Second Baseline]. The schedule and narrative shall be kept up to date, taking into account the actual work progress and shall be updated weekly. The revised schedule and narrative shall, as determined by the CONTRACTOR, be sufficient to meet the requirements for monitoring progress.
During the performance of the Work, SUBCONTRACTOR shall submit to CONTRACTOR periodic reports on the actual progress. Such progress reports shall include the following:

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346 F. App'x 59, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mactec-inc-v-bechtel-jacobs-company-llc-ca6-2009.