Newport News Shipbuilding and Dry Dock Company v. Lawrence H. Garrett, Iii, Secretary of the Navy

6 F.3d 1547
CourtCourt of Appeals for the Federal Circuit
DecidedJanuary 3, 1994
Docket91-1432
StatusPublished
Cited by51 cases

This text of 6 F.3d 1547 (Newport News Shipbuilding and Dry Dock Company v. Lawrence H. Garrett, Iii, Secretary of the Navy) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Newport News Shipbuilding and Dry Dock Company v. Lawrence H. Garrett, Iii, Secretary of the Navy, 6 F.3d 1547 (Fed. Cir. 1994).

Opinions

MICHEL, Circuit Judge.

Newport News Shipbuilding and Dry Dock Company (NNS) appeals from the March 4, 1991 decision of the Armed Services Board of Contract Appeals (the Board or ASBCA), ASBCA No. 33244, 91-2 BCA ¶ 23,865, 1991 WL 41865, reconsideration denied, 91-3 BCA V 24,132, 1991 WL 133263 (June 26, 1991), granting the government’s motion to dismiss NNS’ appeal for lack of subject matter jurisdiction. The ASBCA determined that NNS did not properly certify its claim to the contracting officer pursuant to Contract Disputes Act (CDA) section 6(c)(1), 41 U.S.C. § 605(c)(1) (1988), and its implementing regulation, Federal Acquisition Regulation (FAR) 33.207(e)(2), 48 C.F.R. § 33.207(c)(2) (1991). Because under the FAR, the NNS official who signed the certification was unqualified to do so, we affirm.

BACKGROUND

On January 21, 1986, NNS submitted a claim to the Navy’s contracting officer for “$8,414,054, which represents properly allowable and allocable contract costs arising out of the acquisition of NNS by Tenneco.... [And NNS claims] any and all unpaid monies that will accrue from the date of our calculation of the claim until this matter is resolved.” NNS’ Controller, Mr. John B. Bur-ling, Jr., certified the claim. . Upon the contracting officer’s inquiry info whether Mr. Burling was a proper certifier under the CDA, NNS’ Vice President of Finance, Mr. H.J. Lanese, replied that Mr. Burling “is authorized under the [CDA] to sign and certify any claims against the Government we may have. Mr. Burling is an elected officer of [NNS] having overall responsibility for the conduct of its affairs.” Subsequently, the contracting officer issued a final decision denying the claim. At the time Mr. Burling certified the claim, he reported to NNS’ Director of Finance who, in turn, reported to NNS’ Vice President of Finance. In particular, Mr. Burling testified:

[A]s controller, I had oversight over a wide spectrum of various accounting activities, virtually all of the accounting activities, for the company. I was 'responsible for the general accounting department, which maintained the official books and records of the company and recorded .all business transactions of the company.
I had responsibility for the financial reporting department which put together the company’s monthly and annual financial reports, its annual business plan, its five year business plan, reviewed and approved all capital[] expenditure requests, all major investments that the company would make.
At times, I had responsibility for the company’s internal budgeting and cost reporting, responsibilities of the accounts payable, the payroll department, the vendor analysis program, whereby we’d review sole source procurement from our suppliers.
... [A]ny branch of the government that would come in and review the companies’ [sic] accounting records, I was the primary focus for relationships with government .business personnel, government auditors.
I was responsible for negotiating any overhead settlements with the contracting officer, responding to all DCAA [Defense Contract Audit Agency] audit reports, reaching agreements with the contracting officer on accounting issues, preparing and working with the Tenneco people on putting together the home office overhead submittal, and responding to any audit reports that were issued by the Houston office! ] of the DCAA.

(Emphasis added.) Referring to the instant claim, Mr. Burling also testified that he “worked in the development of the claim and directed the people who worked for [him], in preparing the claim.”

An NNS letter to the Navy dated March 5, 1986 indicated that Mr. Burling had authority “to sign invoices pertaining to contracts with the Government.” However, neither the letter and an attached list nor an internal memorandum dated October 22, 1985 listed Mr. Burling among the numerous persons authorized to sign contractual documents on behalf of NNS.

[1550]*1550NSS subsequently appealed the contracting officer’s final decision to the Board which dismissed for lack of jurisdiction, ruling that under the FAR, Mr. Burling was not qualified to certify the claim. The only issues appealed to us are whether the FAR is lawful, whether court constructions of the FAR apply retroactively, and whether Mr. Burling met its requirements.

DISCUSSION

I.

Section 609(b) of title 41 defines our standard of review for decisions of agency boards of contract appeals as:

[T]he decision of the agency board on any question of law shall not be final or conclusive, but the decision on any question of fact shall be final and conclusive and shall not be set aside unless the decision is fraudulent, or arbitrary, or capricious, or so grossly erroneous as to necessarily imply bad faith, or if such decision is not supported by substantial evidence.

41 U.S.C. § 609(b) (1988). While we cannot disturb fact'findings supported by substantial evidence, Fruin-Colnon Corp. v. United States, 912 F.2d 1426, 1428 (Fed.Cir.1990), we review de novo the board’s conclusions of law, United States v. DeKonty Corp., 922 F.2d 826, 827 (Fed.Cir.1991). Whether or not the lower tribunal had jurisdiction is a question of law. Transamerica Ins. Corp. v. United States, 973 F.2d 1572, 1576 (Fed.Cir.1992). As discussed below, proper certification is a jurisdictional prerequisite and, therefore, who can qualify under the FAR to certify a claim is also a question of law. United States v. Grumman Aerospace Corp., 927 F.2d 575 (Fed.Cir.), cert. denied, — U.S. -, 112 S.Ct. 330, 116 L.Ed.2d 270 (Fed.Cir.1991). See also United States v. Boeing Co., 802 F.2d 1390, 1393 (Fed.Cir.1986) (“The interpretation of regulations which are incorporated into government contracts is a question of law which this court is free to resolve.”).

II.

In its briefs to this court and at oral argument, NNS urges the court to reverse or modify Grumman to the extent that it controls the disposition of this appeal. In effect, NSS, like the dissent, asks us to seek in banc treatment of this appeal. See Fed.Cir.R. 35(a).1 However, especially in light of the court’s formal refusal to rehear Grumman in banc, 927 F.2d at 581, and the long line of binding precedent Grumman followed, we determine that the instant appeal does not “require answer to a precedent-setting question of exceptional importance.” Fed.Cir.R. 35(a). Nor is there a conflict requiring in banc resolution.

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Bluebook (online)
6 F.3d 1547, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newport-news-shipbuilding-and-dry-dock-company-v-lawrence-h-garrett-iii-cafc-1994.