N. Fiorito Co. v. United States

180 Ct. Cl. 1285, 1967 U.S. Ct. Cl. LEXIS 253, 1967 WL 8888
United States Court of Claims·Decided July 20, 1967·No. No. 206-66·Published·Cited by 1 cases

Opinion

PeR Curiam::

This case was referred to Trial Commissioner Bichard Arens with directions to submit recommendation for conclusions of law on defendant’s motion for summary judgment. The commissioner has done so in a report and opinion filed on February 16, 1967. The case has been submitted to the court on defendant’s request for review of the commissioner’s opinion, plaintiff’s response, oral argument of counsel and the briefs of the parties. Since the court agrees with the commissioner’s opinion and recommended conclusion of law, as hereinafter set forth, it hereby adopts the same as the basis for its judgment in this case. Defendant’s motion for summary judgment is, therefore, denied and the case is returned to the trial commissioner for further appropriate proceedings.

OPINION OF COMMISSIONER*

Arens, Commissioner;

Plaintiff appealed under the standard disputes clause, to the Armed Services Board of Contract Appeals rulings of the contracting officer, arising under a contract for the rebuilding of an operational apron at the Portland (Oregon) International Airport. The parties stipulated at the Board hearing that the Board would decide questions of entitlement only, “leaving for remand to the contracting officer and negotiation the question of an equitable adjustment, if any.” Defendant moves for summary judgment on the ground that plaintiff has failed to exhaust its administrative remedy in that, following the Board decision on the several issues presented, plaintiff refused to meet with the contracting officer, but instead filed suit in [1287] this court alleging that the decision of the Board is arbitrary and capricious regarding certain factual issues and erroneous in certain legal interpretations.1

Plaintiff contended before the Board that the contract specifications regarding compaction were practically and legally impossible of performance because plaintiff expended far more time and effort in compacting than it and, assert-edly, defendant expected would be necessary. The Board decided that plaintiff had not made out a case of legal impossibility of performance.

Plaintiff next asserted that, because of certain test procedures employed by defendant, it was required to do more work or work to a higher standard than called for by the contract specifications. The Board stated that it could not find that defendant’s architect-engineer’s testing procedures were improper, and that although the enforcement of the specifications was strict, it was not so excessive as to constitute a change or extra work.

It was indicated in the contract and the parties contemplated that when the base and subbase material from the old apron was removed, it would be stored, that about half of it would be reused in the building of the new apron, and that the other half would be imported by plaintiff from outside sources. When the base and subbase material from the old apron was removed, however, it proved to be unsuitable for reuse, and therefore plaintiff was required to haul all of it away and to import approximately twice the amount originally contemplated. The parties agreed that plaintiff was entitled to an equitable adjustment because of this “overrun” but disagreed as to the interpretation of the contract specifications regarding the formula for payment. The specifications provided that if the actual quantity of any item actually exceeded 110%, then an equitable adjustment would be granted. Defendant contended that the equitable adjustment was to be limited to the quantity of overrun which exceeded 110% of the original estimate, but plaintiff contended that the equitable adjustment should be for the entire increase in quantity. The Board agreed with defendant’s position, and then pointed out certain elements, [1288] including plaintiff’s alleged costs of performance, for the consideration of the contracting officer in making an equitable adjustment.

Plaintiff claimed that the contracting officer’s order to augment the work force and increase the days of work was an acceleration of the work and a change entitling plaintiff to an equitable adjustment, and that plaintiff was entitled to about a month and a half extension in its performance time because of various factors, including the weather, delays caused by defendant, and the importation of the extra base and subbase material. The Board ruled that the contracting officer’s order was proper and therefore denied the claim for a equitable adjustment. Since defendant conceded that the weather entitled plaintiff to a 5 day time extension, the Board stated that it assumed that the contracting officer “will or has granted such extension.” The Board further found that plaintiff was entitled to a 1 day time extension for delay caused by defendant, but that extensions previously granted by the contracting officer embraced an adequate allowance for the importation of the extra base and subbase material.

The parties disagreed on the calculation of the distance and the price for hauling away the base and subbase material which they originally contemplated would be reused. Plaintiff contended that it was entitled to 160 per yard mile, plus overhead, profit and bond expense, and that certain distances in excess of a mile should be “rounded off” to one-half mile. The Board ruled, however, that actual distances should be employed. The Board further stated, “By the same token, a fair price per mile per ton or cubic yard should be just that, and a price quoted or agreed to on the assumption of a higher arbitrary rounded distance figure would not necessarily be fair for a lower actual distance figure.”

The contracting officer had found that although the contract completion date, as modified, was December 28, 1963, plaintiff did not substantially complete performance until March 30,1964, and that as a result defendant suffered damages in the amount of $11,707.18, which amount he assessed against plaintiff. The Board stated that the assessment of actual damages was dependent upon the time of completion [1289] of the contract work in relation to the properly extended contract completion date which the Board had determined. The Board then recommended that the contracting officer give careful consideration to plaintiff’s contentions regarding substantial completion and Air Force, use of the apron before certain of the sealing work had been finished.

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N. Fiorito Co. v. United States, 180 Ct. Cl. 1285, 1967 U.S. Ct. Cl. LEXIS 253, 1967 WL 8888 (cc 1967).

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Related

N. Fiorito Company, Inc. v. The United States
416 F.2d 1284 (Court of Claims, 1969)