RBC Construction Corp.

CourtArmed Services Board of Contract Appeals
DecidedJuly 9, 2020
DocketASBCA No. 59404, 59962, 60050, 60277, 60851
StatusPublished

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Bluebook
RBC Construction Corp., (asbca 2020).

Opinion

ARMED SERVICES BOARD OF CONTRACT APPEALS

Appeals of -- ) ) RBC Construction Corp. ) ASBCA Nos. 59404, 59962, 60050 ) 60277, 60851 ) Under Contract No. W912QR-11-C-0046 )

APPEARANCES FOR THE APPELLANT: Brian S. Wood, Esq. Sarah K. Carpenter, Esq. Smith, Currie & Hancock LLP Washington, DC

APPEARANCES FOR THE GOVERNMENT: Michael P. Goodman, Esq. Engineer Chief Trial Attorney Carlton A. Arnold, Esq. Nicole E. Angst, Esq. Engineer Trial Attorneys U.S. Army Engineer District, Louisville

OPINION BY ADMINISTRATIVE JUDGE D’ALESSANDRIS

Appellant, RBC Construction Corporation (RBC), was awarded a contract by respondent, the United States Army Corps of Engineers (USACE or government) for the construction of four structures at an Army Reserve base in greater San Juan, Puerto Rico. RBC appeals from a series of contracting officer final decisions stemming from alleged contractual changes and government-caused delays. Specifically, RBC alleges additional costs and delays related to the government’s design review, the discovery of asbestos on the project site, and a building layout change (ASBCA No. 59404); a purported contractual change related to the provision of kitchen equipment (ASBCA No. 59962); the government’s failure to process RBC’s tax exemption forms (ASBCA No. 60050); review and approval of RBC’s standing seam roofing and built-up roofing submittals (ASBCA No. 60277); and purportedly additional close-out work (ASBCA No. 60851).

FINDINGS OF FACT

I. BACKGROUND

On September 22, 2011, the Louisville District of the USACE, entered into Contract No. W912QR-ll-C-0046 (the contract), a design/build contract with RBC, a company headquartered in San Juan, Puerto Rico. The contract was for the design and construction of the Caguas Army Reserve Center located in greater San Juan, Puerto Rico, in the original lump sum amount of $12,356,390 for the base proposal and option line items No. 0014-0017. (R4, tabs 3-4) The contract provided for the design and construction of four buildings: a training center; an assembly hall; an organizational maintenance shop (OMS); and an unheated storage building (UHS). The buildings were split between two sites, with the training center and assembly hall located on the existing Cpt. Euripides Rubio U.S. Army Reserve Center (also known as the Puerto Nuevo site) in San Juan, PR. The organizational maintenance shop, UHS, and a covered wash bay were located on the existing Fort Buchanan site, located near San Juan, PR. (R4, tab 4 at GR4_316) The Notice to Proceed was received on November 15, 2011, and RBC was to complete the work within 630 calendar days - or by August 6, 2013 (R4, tab 4, tab 5 at GR4_248). RBC filed five separate certified claims pertaining to the contract. We consider the claims in the order that they were appealed to the Board, but address the overlapping delay claims at the conclusion of this opinion.

II. Design Review and Asbestos (ASBCA No. 59404)

The contract contained detailed specifications for the project. “The complete requirements for each submittal are described in the Army Reserve Design Process and Submittal Requirements Manual – PART C – Design Build – Design Submittal Requirements After Award” (DPSR) (R4, tab 4 at GR4_1152-53 ¶ 1.3.7) (emphasis in original). “All design submission requirements are defined in the” DPSR and “[a]ll aspects will be followed” (R4, tab 4 at GR4_1161 ¶ 1.7.1) The DPSR “describes development of project detailed designs – the working drawings, specifications and other documents comprising completed project design documents. It applies to the design performed by the successful Design/Build (D/B) contractor after project award.” (R4, tab 22 at GR4_2233 ¶ 1.1)

RBC was permitted to use fast track submittals, including specifically site work, under the contract (tr. 1/63, 3/61; R4, tab 4 at GR4_1152 ¶ 1.3.4 (“The contractor shall design and detail a complete and usable facility before construction begins. Fast track design and construction will be permitted on this project. Fast-tracking includes site work, ordering long-lead materials, and mobilization.”) (emphasis in original)).

The contract also provides that the design submittals for fast track shall include a complete design analysis:

1.3.7 The design submittals shall include specifications, drawings, design analysis, CID (FF&E, SID), permit applications, confirmation notices and submittal registers. The government will assist the contractor in finalizing the final draft DD1354, however, it is the Contractor’s responsibility to provide. The complete requirements for each submittal are described in the Army Reserve Design

2 Process and Submittal Requirements Manual- PART C – Design Build -- Design Submittal Requirements After Award. This is referred to below as “DPSR Manual Part C”.

(R4, tab 4 at GR4_1152-53) (bold in original) “If fast track design is used, a geotechnical report shall be submitted as part of the first fast track submittal” (R4, tab 4 at GR4_1158 ¶ 1.6.1.3.1).

For projects utilizing fast-track, the contract requires the interim “building site design to include: building area/site layout, final grade elevations, site electrical, mechanical and civil utilities, permits, Design Analyses” (R4, tab 4 at GR4_1162 ¶ 1.7.4).

The purpose of a fast track submittal is to advance some specific work while the normal construction process continues concurrently (tr. 1/64). A portion of the design gets developed and released for work while the remaining design is being completed (tr. 2/103, 3/61, 7/7).

Generally, the design review process would begin with RBC submitting a design submittal to the government. The government would then review the submittal and enter its comments in the “DR checks” computer system. RBC would respond to the government’s comments in the DR checks system, and then a meeting would be held to discuss the package. (Tr. 1/67-68; 7/9; R4, tab 22 at GR4_2237-38 ¶¶ 1.6.4.1- 4.2)

Under the Contract, the government had 14 days to review each RBC design submittal (tr. 1/67, 165, 5/134, 202; R4, tab 2 at GR4_30-31 ¶¶ 7.1.5, 7.1.9, tab 10 at GR4_2068 (“Government review periods are 14 calendar days rather than 15 calendar days…”)). The government usually gives itself more than 14 days to review submittals (tr. 5/203). Generally, the government agrees to a 30-day government review period for submittals requiring government approval and a 21-day period for government conformance review of other submittals (tr. 5/204-05). According to the government’s area engineer for the Project, Luis Rivera, the government “shot [itself] in the feet” by only providing for a 14-day government review period (app. supp. R4, tab 41 at 1).

A. Fire Suppression Water Cistern

The solicitation included preliminary water flow test data to be used by offerors to bid the fire suppression system (R4, tab 4 at GR4_404 ¶ 13.2.2). The contractor was required to perform a water flow test at the project site in accordance with National Fire Protection Association (NFPA) 291 at nearby fire hydrants to determine static pressure, residual pressure, and water flow (R4, tab 4 at GR4_404 ¶ 13.2.3; tr. 7/14).

3 RBC submitted its site and foundation package, dated February 6, 2012, to the government on February 10, 2012 (tr. 1/65; ASBCA No. 59404 (59404) answer at 3 ¶ 13; R4, tab 12 at GR4_2114). RBC’s site and foundation package was a fast track, stand-alone package that was independent of the final design packages for the project (tr. 1/95; app. supp. R4, tab 85 at 1; R4, tab 11 at GR4_2072).

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