Pyrotechnic Specialties, Inc.

CourtArmed Services Board of Contract Appeals
DecidedApril 10, 2019
DocketASBCA No. 57890, 58335, 59103
StatusPublished

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Bluebook
Pyrotechnic Specialties, Inc., (asbca 2019).

Opinion

ARMED SERVICES BOARD OF CONTRACT APPEALS

Appeals of -- ) ) Pyrotechnic Specialties, Inc. ) ASBCA Nos. 57890, 58335, 59103 ) Under Contract No. W52PIJ-04-C-0098 )

APPEARANCES FOR THE APPELLANT: M. Devlin Cooper, Esq. Kenneth E. Barton III, Esq. Cooper, Barton & Cooper Macon, GA

APPEARANCES FOR THE GOVERNMENT: Raymond M. Saunders, Esq. Army Chief Trial Attorney Robert B. Neill, Esq. Trial Attorney

OPINION BY ADMINISTRATIVE JUDGE PAGE ON APPELLANT'S MOTION FOR RECONSIDERATION

Appellant Pyrotechnic Specialties, Inc. (PSI, contractor or appellant), timely moved for reconsideration of the Board's decision in Pyrotechnic Specialties, Inc., ASBCA Nos. 57890, 58335, 59103, 17-1 BCA ,i 36,696 1; the government (Army or the government) opposes the motion. That decision upheld the government's termination for default of the underlying contract, its rejection of Lot 3-3A, and the government's entitlement to recovery. Familiarity with that decision, which addressed entitlement only, is presumed. We deny the motion.

1. Standard/or Deciding Motions/or Reconsideration

We adhere to a familiar standard in evaluating these motions. Reconsideration "is not the place to present arguments previously made and rejected. '[W]here litigants have once battled for the Court's decision, they should neither be required, nor without good reason permitted, to battle for it again."' Relyant, LLC, ASBCA No. 59809, 18-1 BCA ,i 37,146 at 180,840-41. These motions "do not afford litigants the opportunity to take a 'second bite at the apple' or to advance arguments that properly should have been presentedinanearlierproceeding.' Id. (quotingDixonv. Shinseki, 741 F.3d 1367, 1378 (Fed. Cir. 2014) (citations omitted); see also Avant Assessment, LLC, ASBCA No. 58867, 15-1 BCA ,i 36,137 at 176,384. Having said that:

1 Further references to the decision are to volume and page number, e.g., "17-1 at 178,700.'' [I]f we have made mistakes in the findings of fact or conclusions of law, or by failing to consider an appropriate matter, reconsideration may be appropriate. See Robinson Quality Constructors, ASBCA No. 55784, 09-2 BCA ,i 34,171 at 168,911; L&C Europa Contracting Co., ASBCA No. 52617, 04-2 BCA ,i 32,708. In short, ifwe have made a genuine oversight that affects the outcome of the appeal, we will remedy it.

Relyant, 18-1 BCA ,i 37,146 at 180,840-41.

2. Background

The facts of these appeals, which are lengthy and technical, involve PS I's production (with varying degrees of success) of multiple lots of signal flares. Some background is useful. Firm-fixed-price Contract No. W52PIJ-04-C-0098 with the Army called for PSI to manufacture and provide "MK 124 Mod O Signal, Smoke and Illumination" (MK 124, signal flare, device, or unit). The purpose of the device was to produce a visible distress signal to allow military personnel to summon the attention of reconnaissance aircraft. 17-1 at 178,661, findings 1, 2. The four stages of production were called "Interfixes" 1, 2, 3, and 4; lots within each were serially identified as Lot 1-1, Lot 1-2, etc. 17-1 at 178,669.

The MK 124 is a cylindrical canister about five inches long and 1. 7 inches in diameter. Each end of the MK 124 is crimped to ensure stability. 17-1 at 178,663, findings 10, 12, 14. Among contract requirements in the Technical Data Package is Drawing 3139733, which identifies additional required characteristics of the MK 124. Note 10 of the drawing provides in relevant part that "[ a]fter crimping, [both igniters] shall not be damaged and shall be capable of withstanding a torque of 20 inch-pounds min[imum] with [the outer container] without relative movement [commonly referred to as 'no relative movement]." This note is preceded by the indicator "(Ml03)," which "identifTies] it as a Major characteristic" that is important to the integrity of the signal. 17-1 at 178,668, finding 28. The contract was terminated for default after PSI repeatedly had problems timely and successfully producing lots acceptable to the government. 17-1 at 178,687-90, findings 168-77.

3. PSI 's Arguments in Support of Its Motion for Reconsideration

PSI asserts that "[c]ritically, there are three key reasons that the Board's decision is in error and should be reconsidered." These are that the "testimony at the hearing does not support the factual findings of the Board's Order"; the "Board ultimately and

2 I improperly shifted the burden of proof to PSI"; and, the "Board should reconsider its decision and allow PSI to present the full evidence in its possession of the Government's bad faith." (Appellant's Brief in Support of its Motion for Reconsideration (app. br.) at 2) Examples given by PSI in which hearing testimony allegedly does not support the decision concern the torque test; PSI's crimping problems; and trigger assembly separation defects. It also asserts that the CO mistakenly cited the number of flares from Lot 4-1 with excessive smoke times. (Id. at 2-8)

a. Appellant's Allegations Concerning the Torque Test

The contract required PSI to demonstrate that there was "no relative movement" of the ends of the device as part of inspection. While the contract did not specify a particular means to verify this, appellant internally developed the torque test, which involved twisting canister ends using a torque wrench, as a measurement. The government then allowed this to be used in acceptance testing. See, e.g, 17-1 at 178,674-79, findings 84-116. The protocol for PS I's rework of Lot 3-3 as Lot 3-3A included "100%torque [testing] oftheunits." 17-1 at 178,674, finding 84. Also at that time, the government had the contractor begin to draw a vertical line on the end of the canister to more easily detect whether there was movement when torqued. See 17-1 at 178,679, findings 114-16.

While the decision evaluated and rejected this argument (see, e.g., 17-1 at 178,693-96), PSI maintains on reconsideration that the decision is based upon erroneous findings of fact concerning the torque test which led the Board to the wrong legal conclusion. With respect to finding 90, appellant contends that the government reviewed and approved this test prior to the rework of previously-rejected Lot 3-3. Next, it contends that findings 97 and 116 are inconsistent regarding whether the government had reservations about the efficacy of the torque test. Third, appellant asserts that the government's specifications are defective because PSI manufactured the MK 124s properly and thus its inability to pass inspection was the result of flawed testing. (See app. br. at 2-5, also app. post-hearing br. at 9-12)

1. Finding 90

Finding 90 reads in relevant part: "However, there is no evidence that the torque test was reviewed or approved by the government at any time prior to Lot 3-3' s rework. The record does not include a proposed or approved quality management plan or [Acceptance Inspection Equipment] AIE submission, and no government witness could remember the torque test being submitted for approval." 17-1 at 178,675 (emphasis added, footnote omitted). Appellant maintains that "this conclusion is directly in contradiction to the evidence presented at trial," as testimony from CO Pierce shows

3 that he "eventually acknowledged" that "the Relative Movement Torque Test was approved as the AIE submission" (app. br. at 2-4 (citing tr. 4/113-14)).

When his testimony is read in full, CO Pierce responded "I don't recall" when asked whether the contractor had "an approved AIE plan for this contract'' (tr. 4/113).

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