Olsberg Excavating Co. v. United States

31 Cont. Cas. Fed. 71,445, 3 Cl. Ct. 249, 1983 U.S. Claims LEXIS 1635
CourtUnited States Court of Claims
DecidedSeptember 8, 1983
DocketNo. 516-82C
StatusPublished
Cited by8 cases

This text of 31 Cont. Cas. Fed. 71,445 (Olsberg Excavating Co. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Olsberg Excavating Co. v. United States, 31 Cont. Cas. Fed. 71,445, 3 Cl. Ct. 249, 1983 U.S. Claims LEXIS 1635 (cc 1983).

Opinion

OPINION

WOOD, Judge:

This contract case, before the court on defendant’s motion for summary judgment, presents a jurisdictional issue under the Contract Disputes Act of 1978, 41 U.S.C. §§ 601 et seq. (Supp. V 1981) apparently not heretofore considered judicially.1

Section 7 of the 1978 act provides that, within ninety days from the date of receipt of a contracting officer’s decision under section 6, a contractor may appeal such decision to an agency board of contract appeals. Under section 10(a)(1), however, the contractor may, “in lieu of appealing the decision of the contracting officer * * * to an agency board, * * * bring an action directly on the claim * * * ” in this court.2

The narrow issue here is this: where a contractor has purported to appeal a contracting officer’s decision to an agency board of contract appeals pursuant to section 7 more than ninety days after its receipt of that decision, and the “appeal” has accordingly been dismissed as untimely, is an action “directly on the claim,” begun in this court within twelve months after the contractor’s receipt of the contracting officer’s decision3, barred by the untimely administrative appeal?

Defendant insists that the question must be answered in the affirmative. Relying primarily on Tuttle/White Constructors, Inc. v. United States, 228 Ct.Cl. 354, 656 F.2d 644 (1981) and Santa Fe Engineers, Inc. v. United States, 230 Ct.Cl. —, 677 F.2d 876 (1982), cert. denied,—U.S.—, 103 S.Ct. 569, 74 L.Ed.2d 932 (1983), it asserts that the filing of even an untimely appeal of a contracting officer’s decision to an agency board amounts to a binding choice of forum foreclosing any later direct access to this court under section 10(a)(1). As defendant sees the situation, plaintiff “made a knowing and binding [if untimely] election to appeal to the board”, and “that election precludes the direct access claim [251]*251advanced by the complaint in this case.”4 The court cannot agree.

I

On May 6, 1980, defendant, acting through the Federal Aviation Administration, awarded to plaintiff a contract (Contract No. DTFA09-80-C-20016) calling for the installation of a medium-intensity approach lighting system with runway alignment indicator lights at an airport in Joplin, Missouri.

Plaintiff duly submitted to the contracting officer for decision six claims which arose during the course of performance of the contract. By letter, dated October 5, 1981, to plaintiff, the contracting officer acted upon five of the said claims.5 The contracting officer’s said letter added that “This is the final decision of the Contracting Officer”; that should plaintiff decide to appeal that decision to the Department of Transportation Board of Contract Appeals (“the board”) it “must mail or otherwise furnish written notice thereof” to the board “within 90 days from the date you receive this decision”; and that, “Instead of appealing to the Board * * *, you may bring an action directly in the U.S. Court of Claims within 12 months of the date you receive this decision.”

On or about July 4, 1982, nearly nine months after plaintiff’s receipt of the October 5,1981, decision,6 plaintiff mailed to the board a notice of appeal from that decision.7 The government moved to dismiss the appeal as untimely. The board promptly (and properly) agreed that the appeal had not been timely filed, and dismissed it. Cf. Cosmic Construction Co. v. United States, 697 F.2d 1389 (Fed.Cir.1982).

On October 7, 1982, plaintiff filed a complaint in this court, asserting in substance that defendant owes it $20,879.18 on four of the claims denied, in whole or in part, by the contracting officer. After answering the complaint, defendant moved that it be dismissed for lack of jurisdiction.

II

Tuttle/White teaches that where, within ninety days after receiving a contracting officer’s final decision, a contractor properly informed of its rights under the Contract Disputes Act elects to exercise its statutory option to “appeal such decision to an agency board of contract appeals”, that contractor can “no longer elect to bring suit directly in this court * * * ” under section 10(a)(1). Id., 228 Ct.Cl. at 358, 656 F.2d at 647. Once a contractor has made an informed and effective “choice of forums” by timely opting to pursue its rights before an agency board, it is no longer free to “utilize the direct access provision of the Contract Disputes Act to appeal the adverse decision to this court.” Id., 228 Ct.Cl. at 361, 656 F.2d at 649.

In both Tuttle/White and Santa Fe Engineers a true “choice” of forum was involved. In each case, there was an informed exercise of the contractor’s right to elect between two or more alternative, coexisting, and viable remedies actually available to the contractor at the time of the election. Cf. National Electric Coil v. United States, 227 Ct.Cl. 595, 597 (1981); Prime Construction Co. v. United States, 231 Ct.Cl. — (order, July 2, 1982); see also Skelly and Loy v. United States, 231 Ct.Cl.—, 685 F.2d 414 (1982). On the facts of this case, however, defendant’s authorities are inapposite.

[252]*252Where a contractor has an option to appeal a contracting officer’s decision to an agency board of contract appeals — within a finite time frame — but fails to do so within the prescribed period, the option ceases to exist. Cosmic Construction Co. v. United States, supra; Tuttle/White Constructors, Inc. v. United States, supra, 228 Ct.Cl. at 358-59, 656 F.2d at 647. Timely compliance with section 7’s requirements is a prerequisite to the board’s jurisdiction, and a failure to satisfy those requirements is a bar to any administrative consideration of the merits of a contracting officer’s adverse decision. Cosmic Construction Co. v. United States, supra.8

An untimely “appeal” to an agency board of contract appeals is an absolute nullity, if indeed not a contradiction in terms. At the time plaintiff purported to “appeal,” some nine months or so after its receipt of the contracting officer’s final decision, there was no right of election to proceed administratively, no valid means of invoking the jurisdiction of the board, no real “choice of forums,” but rather only a choice between a direct access suit and abandonment of its claims. To equate plaintiff’s untimely and misguided “appeal” with a forfeiture of the right timely to bring a direct access action (and of its claims), as defendant would in effect have it, is neither just nor proper.9 It is more appropriate, rather, to conclude that “no valid ‘election’ [took] place,” and that no “review process” began. Skelly and Loy v. United States, supra, 231 Ct.Cl.—, n. 10, 685 F.2d at 418, n. 10.

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31 Cont. Cas. Fed. 71,445, 3 Cl. Ct. 249, 1983 U.S. Claims LEXIS 1635, Counsel Stack Legal Research, https://law.counselstack.com/opinion/olsberg-excavating-co-v-united-states-cc-1983.