Munck Asfalt A/S

CourtArmed Services Board of Contract Appeals
DecidedSeptember 22, 2021
DocketASBCA No. 61497
StatusPublished

This text of Munck Asfalt A/S (Munck Asfalt A/S) is published on Counsel Stack Legal Research, covering Armed Services Board of Contract Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Munck Asfalt A/S, (asbca 2021).

Opinion

ARMED SERVICES BOARD OF CONTRACT APPEALS

Appeal of -- ) ) Munck Asfalt A/S ) ASBCA No. 61497 ) Under Contract No. W912DS-14-C-0019 )

APPEARANCE FOR THE APPELLANT: Mr. Hans Christian Munck Chief Operations Officer

APPEARANCES FOR THE GOVERNMENT: Michael P. Goodman, Esq. Engineer Chief Trial Attorney Lorraine C. Lee, Esq. Engineer Trial Attorney U.S. Army Engineer District, New York

OPINION BY ADMINISTRATIVE JUDGE CATES-HARMAN

This appeal arises from a contract awarded to Munck Asfalt A/S (Munck or appellant) by the U.S. Army Corps of Engineers (USACE) to perform work on a runway at Thule Air Base in Greenland. Munck appeals the USACE’s final decision denying its claim for extra work to encase in concrete airfield runway edge light cables. Munck asserts that requiring concrete encasement for the installation of conduit on a portion of the runway renovation is a constructive change, since the drawings for this work do not state concrete encasement is required. The USACE maintains that encasing these electrical cables in concrete was always part of the basic contract. The issue before us then is whether the contract requires both duct and conduit to be concrete-encased where specified in the contract. The parties elected to submit the appeal on the record pursuant to Board Rule 11. We decide entitlement only. Appellant did not submit a brief. For the reasons discussed below, we find that the contract uses the terms duct and conduit interchangeably and therefore we deny this appeal.

FINDINGS OF FACTS

1. The USACE awarded Contract No. W912DS-14-C-0019 to Munck on August 21, 2014, in the amount of 130,042,220 Danish kroner ($22,782,050.07). Consistent with 10 U.S.C. 2304(c)(4) (International Agreement), the award was limited to Danish and Greenlandic firms only. This was a Design-Bid-Build contract. The contract provided for runway removal and replacement, including runway edge lights & thresholds, and other associated electrical upgrades. All work was to be performed in accordance with the plans and specifications as set forth in the special contract requirements entitled “Commencements, Prosecution and Completion of Work” at paragraph d. The project was to occur in two phases over a performance period of 905 calendar days. (R4, tabs 3a at 1-6, 32-33; 3b; 4) 1

2. A Notice to Proceed was issued on September 10, 2014. Munck acknowledged receipt of the Notice to Proceed the following day. (R4, tab 4)

The Dispute

3. A preconstruction conference was held on January 13, 2015. Among the topics discussed during the meeting, was Munck’s request for the government to provide “details of the trench for the runway lighting power cables.” The government responded that the “Cross section of new runway edge lighting trench is detailed on sheet ED103 Concrete Encased Duct – 1 Conduit.” (R4, tab 6 at 1-2) Further written response was provided by the government on January 20, 2015, “[t]he 5kV cables shall be installed in concrete as per the details shown on Sheet ED103. Furthermore, Section 26 56 20, [paragraph] 3.6 and Section 33 70 02, paragraph 2.5 both state that the conduits shall be concrete encased.” (R4, tab 6 at 1-2)

4. On January 20, 2015, Munck responded with a Request for Information “RFI” No. 013. In it, Munck states “[r]egarding the conduit trench we understand that you want the conduits concrete encased, similar to the ducts indicated on drawing ED103. We therefor[e] need a drawing for the conduit trench . . . giving indications on location related to the runway edge line etc.? Please note: The drawings ED101 and ED 102 also need revision to provide the information on concrete encased ducts.” In responding to the government’s previous answer appellant states, “We do not acknowledge your references. The references are referring to ducts yes[,] however the drawings ES 101-107 + ED101 do not specify duct for the work in question.” (R4, tab 7).

1 The government provided a paper Rule 4 file with excerpts from the contract and a CD containing the full contractual documents at tab 3. This CD is not organized in tabs, so we refer here to the relevant file’s name. Drawings ES101-08 apply to Phase 1, while ES108-13 apply to Phase 2. Drawing ES114 appears in different versions in each phase, but the differences are irrelevant for our purposes. Drawings ED101-103 are the same in both phases. For simplicity, we will cite to and the parties primarily refer to drawings in Phase 1, though the claim at issue spans work during both phases. Likewise, our decision applies to the disputed work in both phases. 2 5. USACE responded to RFI No. 013 on January 22, 2015, directing that the “cables shall be installed in concrete as per the details shown on Sheet ED103. . . . [T]he location of the conduit trench is indicated on Notes 1 and 2 of Sheets ES101 thru ES107.” The USACE explained that “[s]heet ED101 is an Elevated Light Detail not a duct/conduit burial detail” with new duct bank details “shown on large scale details on sheet ED103 . . . .” Further reference is provided to specification sections 26 56 20, paragraph 3.6 and Section 33 70 02, paragraph 2.5 requiring that “conduits shall be concrete encased.” (R4, tab 8)

6. Appellant performed the work as directed by the government and thereafter submitted a Request for Equitable Adjustment (REA) on September 21, 2015, seeking recovery of 3,028,559 Danish kroner asserting entitlement on the theory that encasing the cables in concrete represented a change to the contract. Appellant rejected the government’s reliance on Section 26 56 20, paragraph 3.6 and Section 33 70 02, paragraph 2.5 as requiring both duct lines and conduit be concrete encased in locations as indicated. Appellant declared that there is a difference between conduits and duct lines, relying on the distinction made in Section 31 00 00 paragraph 3.7.1. Appellant argued further that the contract language is unclear, and it should be construed against the drafter. (R4, tab 9 at 1)

7. By letter dated May 18, 2016, the government denied the REA (R4, tab 10).

8. On June 3, 2016, Munck certified its claim and requested a final decision from the contracting officer (R4, tab 11). A COFD was issued on December 11, 2017, denying the claim in the amount of $530,572.17 (R4, tab 2 at 10). Appellant timely appealed. The Board has jurisdiction over this appeal.

The Specification

9. The contract incorporated by reference and FAR 52.233-1, DISPUTES (JUL 2002), and FAR 52.236-21, SPECIFICATIONS AND DRAWINGS FOR CONSTRUCTION (FEB 1997) – Alternate I (APR 1984) (R4, tab 3a at 12), which provides in part: “Anything mentioned in the specifications and not shown on the drawings, or shown on the drawings and not mentioned in the specifications, shall be of like effect as if shown or mentioned in both. In case of a difference between drawings and specifications, the specifications shall govern.” FAR 52.236-21(a)

10. The contract also incorporated by full text DFARS 252.236-7001 CONTRACT DRAWINGS AND SPECIFICATIONS (AUG 2000) which provides:

(a) The Government will provide to the Contractor, without charge, one set of contract drawings and specifications, except publications incorporated into the

3 technical provisions by reference, in electronic or paper media as chosen by the Contracting Officer.

(b) The Contractor shall—

(1) Check all drawings furnished immediately upon receipt;

(2) Compare all drawings and verify the figures before laying out the work;

(3) Promptly notify the Contracting Officer of any discrepancies;

(4) Be responsible for any errors that might have been avoided by complying with this paragraph (b); and

(5) Reproduce and print contract drawings and specifications as needed.

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Munck Asfalt A/S, Counsel Stack Legal Research, https://law.counselstack.com/opinion/munck-asfalt-as-asbca-2021.