MOQA-AQYOL JV, LTD.

CourtArmed Services Board of Contract Appeals
DecidedNovember 7, 2017
DocketASBCA No. 57963, 60456
StatusPublished

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MOQA-AQYOL JV, LTD., (asbca 2017).

Opinion

ARMED SERVICES BOARD OF CONTRACT APPEALS

Appeals of -- ) ) MOQA-AQYOL JV, LTD. ) ASBCA Nos. 57963, 60456 ) Under Contract No. W5J9JE-1 O-C-0031 )

APPEARANCE FOR THE APPELLANT: Thomas J. Fraser, Jr., Esq. Eavenson, Fraser, Lunsford & Ivan Jacksonville, FL

APPEARANCES FOR THE GOVERNMENT: Thomas J. Warren, Esq. Acting Engineer Chief Trial Attorney Daniel B. McConnell, Esq. Rebecca L. Bockmann, Esq. Engineer Trial Attorneys U.S. Army Engineer District, Middle East Winchester, VA

OPINION BY ADMINISTRATIVE JUDGE O'CONNELL

These appeals arise from a contract to build an Afghanistan National Police Uniformed Police District Headquarters facility in Dasht-e Qal' eh, Takhar Province, Afghanistan. The government's termination for default is at issue in ASBCA No. 57963 and appellant's monetary claim in ASBCA No. 60456. The Board conducted a hearing from 6-18 January 2017 in Falls Church, Virginia. After providing the parties the opportunity to file post-hearing briefs, the Board heard closing arguments on 15 June 2017. We deny the appeals.

FINDINGS OF FACT

I. The Contract

1. On 5 May 2010, the U.S. Army Corp of Engineers (Corps or USACE) awarded appellant, MOQA-AQYOL JV LTD. (MOQA), a contract to adapt a USACE design for a district headquarters compound that consisted of a one-story building for 60 police, a dining facility, berthing and offices/conference areas, armory and jail cells, force protection structures, electrical system, plumbing/sewage system, and water system (R4, tab 7 at 36, 41-42; tr. 4/210, 7/223-24 ).

2. The original contract price was $1,490,804.67, with a term of 365 days plus weather days as specified per province (R4, tab 7 at 2, 33, 36). The original contract failed to include Takhar Province, however (see id. at 159-61 ), and thus failed to include the required weather days. The Corps corrected this a year later in Modification No. A00003, which, in relevant part, added 62 calendar days to the contract term (R4, tab 11 at 2).

3. A few words on project participants are in order because they illustrate the challenges in building this project. At the hearing the Corps presented testimony from five of its employees but none of them actually went to the project site because it was deemed too dangerous for American civilians (tr. 1/34, 2115). The Corps monitored the site from a resident office in Kunduz (tr. 1/33) and headquarters in Kabul (tr. 2/76, 4/267, 294, 323). The Corps employees were stretched thin; its quality assurance representative testified that he was responsible for 20 projects (tr. 2115-16).

4. Through a separate contract the Corps retained native Afghans to act as its eyes and ears on the site; specifically, a local national quality assurance representative (LNQA), who was supervised by a local national project engineer who, in turn, was supervised by a local national deputy resident engineer (tr. 2/16-17, 4/245). The LNQA sent the USACE quality assurance representative a daily report and photos (tr. 1/34, 2115). Neither party presented testimony from these contract employees. The main LNQA, Habibullah Khadaam (see R4, tab 456), is a source of considerable controversy; as we will discuss, depending on who you believe, Mr. Khadaam is either a competent young man who was perhaps too patient with MOQA or a disgruntled former MOQA employee looking to settle a score.

5. Due to the work load of Corps employees, the Corps also retained Michael Baker Jr., Inc., to review schedules (tr. 1/49), but no employees of that firm testified even though scheduling issues are in dispute. Similarly, although geotechnical and design-related issues played a prominent role on this project, neither party presented testimony from a designer or geotechnical professional. Two employees ofMOQA testified, its president and chief executive officer, Murad Hamidi, and its program manager from August to October 2011, Jonathan Griffin (tr. 5/283). Mr. Griffin testified that he went to the site on just two occasions, including once with Mr. Hamidi (tr. 5/317). There is no evidence that Mr. Hamidi made additional site visits.

6. After the Corps terminated MOQA for default, it retained another contractor to complete the project, which it also terminated (R4, tab 202). A third contractor completed the work (R4, tab 211). Although MOQA's monetary claim is based in large part on materials and equipment left on site, and work successfully completed, no one from either of the replacement contractors testified.

II. Delays and Other Problems

7. The project suffered from a number of delays and the Corps found fault with a number of aspects ofMOQA's performance. The Corps terminated the contract about

2 three weeks before the 22 November 2011 completion date (on 31 October 2011 ). MOQA concedes that it could not complete the project by 22 November; its expert projected a completion date of27 May 2012 (tr. 7/234). The dispute lies in which party· was responsible for delaying the project so that it could not be completed until six months (or more) after the scheduled completion. An overview of the delay issues is as follows.

A. The License for Construction Delay

8. The Corps issued a notice to proceed with work to begin on 20 May 20 I 0 (R4, tab 21 ), but the contracting officer soon had to suspend all work (on 2 7 May) because the Corps had not obtained a license for construction (R4, tabs 23, 26; tr. 3/186). The Corps obtained the license and ordered MOQA to resume work on 25 August 2010 (R4, tab 34). The parties subsequently executed bilateral Modification No. (Mod.) A00002 on 8 December 2010 that added 92 days and $190,450 to the contract (R4, tab 10). The modification provided that:

It is further understood and agreed that this adjustment constitutes compensation in full on behalf of the Contractor ... for all costs and markups directly or indirectly attributable for the change ordered, for all delays related thereto ... and for performance of the change within the time frame stated.

(Id. at 2) (Emphasis added) ("Release Language")

B. The Compound Size Change

9. The contract required construction of the compound in a maximum 7 5 x 75 meter area (R4, tab 7 at 42), but the license for construction provided for a 70 x 130 meter area (R4, tab 51 ). Although MOQA contends in its brief (page 14) that the Corps did not tell MOQA about the size change until 13 January 2011, the record demonstrates that MOQA knew about the change by June 2010 (R4, tab 288 at 10-12, tab 502 at 64; tr. 7/50-52).

10. On 18 January 2011, the Corps issued a request for proposals (RFP-0001) to perform the work resulting from the compound size change. The RFP stated that MOQA should add 30 days to the contract completion date "to allow items such as additional surveying, demining, grading, and construction." (R4, tab 51 at I) It also cautioned MOQA that it was not a notice to proceed and that MOQA should not begin work until it received a signed modification (id. at 2).

3 11. The parties thereafter executed bilateral Modification No. A00003 on 7 May 2011 (R4, tab 11 ). This modification increased the contract price by $406,000 and added 92 days to the completion date (30 for the size change and 62 for the weather days omitted from the original contract as described above). The modification contained the same Release Language as Mod. A00002 (id. at 2-3). The addition of these days changed the completion date from 22 August to 22 November 2011, where it would remain through the date of termination.

C. Problems with Submittals

12.

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