Maintenance Engineers, Inc. v. United States

36 Cont. Cas. Fed. 75,950, 21 Cl. Ct. 553, 1990 U.S. Claims LEXIS 385, 1990 WL 149778
CourtUnited States Court of Claims
DecidedOctober 4, 1990
DocketNo. 387-89C
StatusPublished
Cited by7 cases

This text of 36 Cont. Cas. Fed. 75,950 (Maintenance Engineers, Inc. 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
Maintenance Engineers, Inc. v. United States, 36 Cont. Cas. Fed. 75,950, 21 Cl. Ct. 553, 1990 U.S. Claims LEXIS 385, 1990 WL 149778 (cc 1990).

Opinion

OPINION

NETTESHEIM, Judge.

This ease is before the court after trial. Plaintiff seeks recovery on a government contract claim for increased costs and expenses associated with its performance of a grounds maintenance contract. Defendant takes the position that the doctrine of patent ambiguity bars plaintiff from recovering for extra work when plaintiff should have alerted the Government, before award, that the contract drawings contained a glaring error in the size of the grounds to be maintained.

FACTS

On March 17, 1986 the Department of the Navy, Naval Facilities Engineering Command (“NAVFAC”), awarded Maintenance Engineers, Inc. (“plaintiff”), Contract No. 85-C-1807 to perform grounds maintenance services at the Oak Knoll Naval Regional Medical Center (the “hospital”), Oakland, California. The hospital’s terrain is hilly, with numerous ravines running throughout the grounds. By standing at a point on the base in front of the Senior Officers’ Quarters, one can look out and see most, if not all, of the hospital grounds.

Plaintiff is a successful corporation based in West Los Angeles, California, having engaged in business as a grounds maintenance contractor for roughly 30 years. Currently, it employs approximately 100 employees throughout the western United States. Since 1980 grounds maintenance contracts have been the exclusive source of business for plaintiff, with 95 percent of these contracts involving the military.

Contract No. 85-C-1807 was a combination “Fixed-price Lump Sum” and “Indefinite Quantity Work” grounds maintenance contract awarded to the overall lowest bidder. The fixed-price portion of the contract covered recurring work performed on a monthly basis. The indefinite quantity portion of the contract covered sporadic, specially requested services. These two portions were bid separately by the prospective contractors and then totalled by NAVFAC to determine the apparent low bidder. The contract required plaintiff to perform such tasks as lawn mowing, trimming, edging, cleaning up debris, watering, pruning, aerating, fertilizing, applying pesticides, and controlling weeds on the hospital grounds. The contract’s performance period began on April 1, 1986, and continued for one year through March 31, 1987.

Plaintiff’s bid for the contract’s fixed portion was $152,400.00, and its bid for the indefinite quantity portion of the contract was $6,120.00. After NAVFAC totalled these two bids, plaintiff was the apparent low bidder.1 Contract modification P00003 extended the original contract for a six-month period, from April 1, 1987, to September 30, 1987, at an additional cost to NAVFAC of $76,200.00. Subsequently, contract modification P00007 lengthened the contract by another six-month period, from September 30, 1987, to March 31, 1988, at an additional cost to NAVFAC of $77,942.34. Plaintiff claimed damages based on a third six-month extension, but no evidence was introduced identifying the duration or amount of the modification.

Required work under the contract was not uniform throughout the hospital grounds. Rather, the required work varied by area according to its classification, as set out in three drawings of the hospital grounds and in an accompanying legend to drawing no. 6256164. The drawings consisted of maps of the grounds, unique number designations for individual work areas, and different “hatching” patterns keyed to numbered areas representing the several general categories of contract work areas. The legend on drawing no. 6256164 further explained these work areas and defined them as follows: 1) The “200 area” depicted the housing areas consisting of 65,000 square feet; 2) the “300 area” symbolized [556]*556the developed areas containing 845,000 square feet; 3) the “400 area” embodied the fire break areas totalling 217,000 square feet; and 4) the “500 area” represented the semi-improved weed and grass area which, according to the legend, contained 167,000 square feet. However, the legend was incorrect regarding the amount of square footage in the 500 area. The 500 area actually contained 1,886,000 square feet, not 167,000 square feet as indicated in the legend.2 The drawings did not designate any areas as “100 areas”, but did include an unnumbered area, with its own hatching pattern, described as “undeveloped areas not in the contract.” The terrain of the 500 area had steep inclines and slopes, thereby prohibiting most large machinery from operating in it. The work conducted in the 500 area was extremely labor intensive, with most (estimated by plaintiffs president as 85 or 90 percent) of the work done by hand. Although the contract called for work to be performed on all areas, the present claim concerns only the fixed-price work in the 500 area.

Plaintiff’s bid of $152,400 was $86,050 below NAVFAC’s estimate of $238,450. NAVFAC contracting personnel became concerned that the bid’s low price might cause plaintiff’s employees to go unpaid. Consequently, before awarding the contract, NAVFAC requested a bid verification meeting with a representative of plaintiff, at which the contractor was to provide assurances to NAVFAC that the work would be accomplished for the bid price and that plaintiff understood the work involved. NAVFAC requested that certain documents, such as work sheets and a detailed estimate of costs, be furnished at the meeting.

The meeting took place on March 7,1986. As preparation for the meeting, Bradley Lee Herman, plaintiff’s President, reviewed the bid, checked the mathematics, and discovered no errors. At the meeting there was no discussion of the square footage involved. The conversation concerned mainly price. One of NAVFAC’s representatives, Gwendolyn Adams-Kyles, expressed NAVFAC’s concerns to Joel Herman, who represented plaintiff at the meeting. In response Joel Herman stated that he understood the work involved, that his bid was firm, that plaintiff would realize a profit on the contract, and that he would send NAVFAC a letter verifying plaintiff’s bid. The contractor mailed such a confirming letter, signed by Bradley Herman, on that same day. The letter stated that after review of the bid, no error was found. The only information provided by Joel Herman at the meeting was a breakdown of the number of men to be used each month. Joel Herman presented this information orally.

Immediately following the meeting, NAVFAC decided to award plaintiff the contract. Its decision was based on such factors as Joel Herman’s insistence that the job could be done at the price bid, his ability as a salesman, his contacts with the Government, plaintiff’s experience, and the fact that plaintiff already owned the majority of the equipment required for the job.

On March 26, 1986, a pre-work conference was held. The participants, which included NAVFAC’s Patricia Ann Ward and Joel Herman, discussed mainly administrative matters, such as insurance, phone numbers, and the identity of the site supervisor. While in attendance, Joel Herman stated that he believed there might be an error in the 500 area’s square footage. No action regarding this possible discrepancy was undertaken by either plaintiff or NAVFAC at this time.

Immediately prior to the start of performance, Michael P. Krieg, plaintiff’s Project Manager on its nearby Treasure Island contract, conducted a detailed study of the hospital grounds with a NAVFAC inspector to determine what areas the contract covered and what work had to be done. From this visit, Mr. Krieg formed an impression that there might be a large error in the square footage of the 500 area [557]

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Furniture By Thurston v. United States
103 Fed. Cl. 505 (Federal Claims, 2012)
Rotech Healthcare Inc. v. United States
71 Fed. Cl. 393 (Federal Claims, 2006)
ITT Federal Services Corp. v. United States
45 Fed. Cl. 174 (Federal Claims, 1999)
Metric Constructors, Inc. v. United States
44 Fed. Cl. 513 (Federal Claims, 1999)
Crown Laundry & Dry Cleaners, Inc. v. United States
39 Cont. Cas. Fed. 76,575 (Federal Claims, 1993)
Western States Construction Co. v. United States
38 Cont. Cas. Fed. 76,376 (Court of Claims, 1992)
Kiewit/Tulsa-Houston v. United States
37 Cont. Cas. Fed. 76,255 (Court of Claims, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
36 Cont. Cas. Fed. 75,950, 21 Cl. Ct. 553, 1990 U.S. Claims LEXIS 385, 1990 WL 149778, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maintenance-engineers-inc-v-united-states-cc-1990.