Nascent Group, J.V. v. United States

103 Fed. Cl. 338, 2012 U.S. Claims LEXIS 19, 2012 WL 176612
CourtUnited States Court of Federal Claims
DecidedJanuary 18, 2012
DocketNo. 09-092
StatusPublished
Cited by3 cases

This text of 103 Fed. Cl. 338 (Nascent Group, J.V. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nascent Group, J.V. v. United States, 103 Fed. Cl. 338, 2012 U.S. Claims LEXIS 19, 2012 WL 176612 (uscfc 2012).

Opinion

MEMORANDUM OPINION AND FINAL ORDER

BRADEN, Judge.

The parties agree that the Army Corps of Engineers (“the Army Corps”) contracted with the NASCENT Group Joint Venture (“NASCENT”)1 to construct a Border Patrol Station at Blaine, Washington (“the Blaine Project”). NASCENT, however, claims that it also contracted to construct a second Border Patrol Station at Lynden, Washington (“the Lynden Project”) and priced the Blaine Project with this understanding. The parties also do not dispute that, when NASCENT was awarded a contract to construct the Blaine Project, the Army Corps had not obtained funding for the Lynden Project. At issue is whether NASCENT was awarded a contract to construct the Blaine Project and [341]*341the Lynden Project, or only the Blaine Project, "with an Army Corps option to later award the Lynden Project.

Following a three-day trial, extensive post-trial briefing, and considering comprehensive arguments of NASCENT’s counsel as to all potential theories under which NASCO could be entitled to relief, for the reasons discussed herein, as a matter of fact and law, the court has determined that NASCENT did not and cannot establish any express breach of contract and/or a breach of the implied covenant of good faith and fair dealing.

To facilitate review of this Memorandum Opinion and Final Order, the court has provided the following outline:

I. RELEVANT FACTS. CO

A. Congress Appropriated Funds For The Army Corps Of Engineers To Construct Border Patrol Stations In Blaine, Washington And Lynden, Washington. CO 4^ to

B. On November 13,2003, The Army Corps Of Engineers Requested Proposals To Construct Border Patrol Stations In Blaine, Washington And Lynden, Washington. CO CO

C. On December 16,2003, Plaintiff Submitted A Proposal. CO CO

D. On January 14,2004, The Army Corps Issued Amendments To The November 13,2003 Proposal. CO CO

E. On January 28,2004, Plaintiff Submitted A Revised Proposal. ^ CO

F. During February-March 2004, Plaintiff And The Army Corps Of Engineers Engaged In Pre-Contractual “Value Engineering” Discussions. CO

G. On March 11, 2004, The Army Corps Of Engineers’ Project Manager And Technical Representative Sent An E-mail To Plaintiff.. CO

H. On March 16, 2004, Plaintiff Sent A Facsimile To The Army Corps Of Engineers, Submitting A Price Of $6,466,717 For The Blaine Project. lO CO

I. On April 21,2004, The Army Corps Of Engineers’ CO Signed DD Form 1155, With Attachments, A Copy Of Which Was Found In Plaintiffs Files. CO 05

J. On April 22, 2004, The Army Corps Of Engineers Sent A “Notice Of Award Information” To Plaintiff By Facsimile. CO CO

K. In May 2004, The Army Corps Of Engineers And Plaintiff Agreed To Bilateral Modification No. 1. CO -3

L. On May 10,2004, A Notice To Proceed Was Issued Regarding The Blaine Project. CO 4^ -3

M. The Army Corps Of Engineers’ Attempts To Secure Funding For The Lynden Project. CO 4^ CO

II. PROCEDURAL HISTORY.350

III. JURISDICTION.352

IV. STANDING.353

y. DISCUSSION. CO to CO

A. Whether The Army Corps Of Engineers’ March 11, 2004 E-Mail Was An Offer That Plaintiff Accepted By A March 16, 2004 Facsimile. CO io CO

1. The Plaintiffs Argument. CO io CO

2. The Government’s Response. ^ UJ CO

3. The Court’s Resolution. LQ io CO

a. The Army Corps Of Engineers’ March 11, 2004 E-Mail Was Not An Offer. CO cn cn

b. Even If The Army Corps of Engineers’ March 11,2004 E-Mail Was An Offer, Plaintiffs March 16, 2004 Facsimile Was Not An Acceptance. CO lO CO

[342]*342B. Whether The Parties Formed A Contract On April 21,2004, In Response To Plaintiffs March 16, 2004 Facsimile Proposal Offering To Construct The Blaine Project, With An Option To Construct The Lynden Project. CO cn —3

1. The Plaintiffs Argument. 03 cn —3

2. The Government’s Response. CO en OO

3. The Court’s Resolution. CO or CO

a. Plaintiffs March 16, 2004 Facsimile Offered To Construct The Blaine Project, With The Lynden Project As An Option. CO cn co

b. The Army Corps Of Engineers’ April 21, 2004 DD Form 1155, With Attachments, Accepted Plaintiffs March 16,2004 Offer... o co co

C. Assuming, Arguendo, That A Contract Was Not Formed On April 21, 2004, Whether The Army Corps Of Engineers’ April 22, 2004 Facsimile Was A Contract To Construct The Blaine Project, With The Lynden Project As An Option. co CO

1. Assuming, Arguendo, That A Contract Was Formed By The Army Corps Of Engineers’ April 22, 2004 Facsimile, Did The Terms Thereof Unambiguously Award Plaintiff The Blaine Project, With The Lynden Project As An Option?. CO CO

2. Assuming, Arguendo, That The Army Corps of Engineers’ April 22, 2004 Facsimile Was Ambiguous, Was Any Ambiguity “Patent,” Thus Requiring The Ambiguity To Be Construed In Favor Of The Army Corps Of Engineers?. CO 05 to

D. Whether The Army Corps Of Engineers Breached The Implied Covenant of Good Faith And Fair Dealing. CO CO CO

1. The Plaintiffs Argument. CO CO CO

2. The Government’s Response. ^ CO CO

3. The Court’s Resolution. ^ co CO

VI. CONCLUSION. .365

1. RELEVANT FACTS.2

A. Congress Appropriated Funds For The Army Corps Of Engineers To Construct Border Patrol Stations In Blaine, Washington And Lynden, Washington.

In the National Defense Authorization Act For Fiscal Year 2002, Pub.L. No. 107-107, 115 Stat. 1012 (2001), Congress appropriated funds to construct Customs and Border Protection (“CBP”) facilities at three locations at or near the Canadian border: Blaine, Washington; Lynden, Washington; and Oroville, Washington. JX 5.

The Army Corps received $10.1 million to construct the Blaine Project that would include both a CBP headquarters building and a smaller border patrol station, but only a budget item of $4.5 million to construct the smaller CBP station at Lynden.3 JX 5; TR at 122,134, 260-62 (Saepoff).

In addition, the Army Corps was not authorized to transfer or reprogram funds between projects, ie., from the Blaine Project to the Lynden Project, without approval from DHS. TR at 136-137, 262-263 (Saepoff). The Army Corps used some of the appropriated funds to purchase property, and after the Army Corps’ purchase of real estate for the Lynden Project and budgeting for other Army Corps expenses, $3.3 million remained for design and construction of the Lynden Project. JX 19 at COE 00522; TR at 263-64, 266-67, 272-73 (Saepoff) (explaining the use of funds). After purchasing real estate [343]*343and budgeting for internal Corps expenses, $5.6 million remained for the Blaine Project. JX 19 at COE 00522.

On August 29, 2003, NASCENT was one of three contractors awarded a Multiple Award Task Order Contract (“MATOC”) by the Seattle District Office of the Army Corps of Engineers. Jt. Stip. Nos.

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103 Fed. Cl. 338, 2012 U.S. Claims LEXIS 19, 2012 WL 176612, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nascent-group-jv-v-united-states-uscfc-2012.