Metric Construction Co. v. United States

34 Cont. Cas. Fed. 75,424, 14 Cl. Ct. 177, 1988 U.S. Claims LEXIS 1, 1988 WL 2594
CourtUnited States Court of Claims
DecidedJanuary 15, 1988
DocketNo. 349-87C
StatusPublished
Cited by16 cases

This text of 34 Cont. Cas. Fed. 75,424 (Metric Construction 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
Metric Construction Co. v. United States, 34 Cont. Cas. Fed. 75,424, 14 Cl. Ct. 177, 1988 U.S. Claims LEXIS 1, 1988 WL 2594 (cc 1988).

Opinion

OPINION

ROBINSON, Judge.

This case is before the Court on defendant’s motion for partial summary judgment. The sole issue presented is whether plaintiff’s demands upon the contracting officer for extended home office overhead costs in “an amount exceeding $91,000” and for third-party indemnification fees “exceeding $7,500” allegedly incurred during performance of a contract with the U.S. Army are sum-certain claims cognizable under the Contracts Disputes Act (CDA), which would allow plaintiff’s resort to judicial remedies pursuant to 41 U.S.C. § 605(c)(5). For reason hereinafter stated, the Court finds that plaintiff’s claims do not substantially comply with the requirements of the CDA. Thus, the Court grants defendant’s motion for partial summary judgment, but without prejudice to the plaintiff to resubmit its claims to the contracting officer and to pursue judicial remedies should the contracting officer deny the resubmitted claims or fail to issue a decision on them within 60 days after the plaintiff’s resubmittal.

Facts

The Department of the Army awarded Contract No. DACA 09-82-C-0034 to Metric Construction Co. on March 31,1982, for the construction of four new barracks buildings, plus a central energy plan, at the Army’s National Training Center, Fort Irwin, California. (“Barracks Contract”). The Department of the Army also awarded to Metric Construction Co. on May 7, 1984, Contract No. DACA 09-84-C-0056 for the construction of an ammunition storage depot at Fort Irwin, California. (“Ammo Contract”).

A series of modifications to the Barracks Contract increased the total contract amount by $135,087 and extended the contract performance period by 91 days. A single, unilateral modification by the Army of the Ammo Contract increased the contract price by $480,260 and suspended the project for 54 days.

On May 15, 1986, counsel for Metric wrote to the contract administrator a detailed letter regarding the Ammo Contract. The May 15, 1986 letter asserted Metric’s belief that it was entitled to $107,525 for extended home office overhead, as computed using the Eichleay formula, profit of $54,921 and $30,358 for third-party indemnification fees which Metric claimed it incurred as a result of the Ammo Contract modification.

By letter dated July 11, 1986, counsel for Metric wrote to the contract administrator regarding the Barracks Contract, setting forth Metric’s belief that it was entitled to extended home office overhead and third-party indemnification costs allegedly incurred as the result of modifications to the Barracks Contract. Unlike the May 15, 1986 letter which stated the amounts Metric believed it was owed, the July 11, 1986 letter stated no amount, but merely said: “The issues now to be resolved are the extended contract performance period home office overhead costs as well as the third-party indemnification fee.” Metric included with the July 11, 1986 letter a voluminous appendix.

On November 3, 1986, counsel for Metric again wrote the contract administrator. The November 3, 1986 letter summarized the grounds upon which Metric sought contract adjustments as explained in the May 15, 1986 and July 11, 1986 letters, and incorporated those letters by reference. The November 3, 1986 letter claimed entitlement to $107,525 representing extended home office overhead, $30,358 representing third-party indemnification costs, and $54,921 in profit for the Ammo Contract. The November 3, 1986 letter also sought extended home office overhead costs “in an amount exceeding $91,000” and “third-party indemnification fees exceeding $7,500” under the Barracks Contract. In addition, Metric formally requested in its November 3, 1986 letter a contracting officer’s decision for an equitable adjustment to the Barracks and Ammo Contracts.

[179]*179Counsel for Metric in a letter dated February 18, 1987, demanded a decision by the contracting officer upon the November 3, 1986 request for an equitable adjustment. The February 18, 1987 letter included a copy of the November 3, 1986 letter and a certification statement signed by the President of Metric, Tom Miller. The contracting officer has not yet issued a final, written decision on Metric's request for an equitable adjustment to the Barracks and Ammo Contracts.

Metric filed suit in this Court on June 12, 1987. In its complaint, Metric seeks “judgment against the United States in an amount to be proven at trial.”

Discussion

Under 41 U.S.C. § 609(a), a contractor may bring an action directly on a contracting officer’s final decision in the United States Claims Court. A contracting officer’s final decision must be in writing, a copy of which must be provided to the contractor. 41 U.S.C. § 605(a). If a contracting officer fails to issue a final, written decision on a contract claim within 60 days of receipt of a properly submitted claim, 41 U.S.C. § 605(c)(5) deems the claim denied and authorizes the commencement of a suit pursuant to § 609(a). Thus, a final decision by a contracting officer or the deemed denial of a claim is the “linchpin” for suit in the Claims Court. Paragon Energy Corp. v. United States, 227 Ct.Cl. 176, 645 F.2d 966 (1981). However, a proper claim has to be submitted to a contracting officer before a final decision can be rendered or before a claim can be deemed denied. Straga v. United States, 8 Cl.Ct. 61 (1985).

A contractor’s claim must be in writing, 41 U.S.C. § 605(a), though it need not be submitted in any particular form or use any particular language. Contract Cleaning Maintenance, Inc. v. United States, 811 F.2d 586 (Fed.Cir.1987). The writing need only give clear and unequivical notice of the basis and the amount of the claim. Id. Courts generally interpret the Contract Disputes Act as requiring a claim to state a sum-certain amount. Z.A. N. Co. v. United States, 6 Cl.Ct. 298 (1984); Tecom, Inc. v. United States, 732 F.2d 935 (Fed.Cir.1984). However, a claim in which the amount in dispute can be easily determined by a simple mathematical calculation or from the contractor’s submission to the contracting officer is sufficient for purposes of the Act. Metric Construction Co., Inc. v. United States, 1 Cl.Ct. 383 (1983).

The rationale for requiring that claims submitted to the contracting officer must specify a particular money amount is sound. When a claim seeks a particular amount and the contracting officer finds entitlement to the amount sought, the claim can be settled and the contractor is precluded from taking an appeal under the doctrine of accord and satisfaction. See, Hoffman Construction Co. v. United States, 7 Cl.Ct. 518 (1985).

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Cite This Page — Counsel Stack

Bluebook (online)
34 Cont. Cas. Fed. 75,424, 14 Cl. Ct. 177, 1988 U.S. Claims LEXIS 1, 1988 WL 2594, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metric-construction-co-v-united-states-cc-1988.