S & M Management Inc. v. United States

82 Fed. Cl. 240, 2008 U.S. Claims LEXIS 161, 2008 WL 2488196
CourtUnited States Court of Federal Claims
DecidedJune 16, 2008
DocketNo. 06-155C
StatusPublished
Cited by5 cases

This text of 82 Fed. Cl. 240 (S & M Management Inc. 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
S & M Management Inc. v. United States, 82 Fed. Cl. 240, 2008 U.S. Claims LEXIS 161, 2008 WL 2488196 (uscfc 2008).

Opinion

OPINION AND ORDER

SWEENEY, Judge.

Before the court in the above-captioned case is Defendant’s Motion for Partial Summary Judgment. Defendant seeks a ruling from the court that the plaintiff contractor was required to address all of the disputed items on the postconstruction punchlist. Plaintiff responds that it completed all of the work required by the contract and that all of its work was approved by government representatives. The court concludes that plaintiff has failed to comply with the contract with respect to most of the disputed items, but that genuine issues of material fact remain on two of the issues. Accordingly, for the reasons set forth below, the court grants in part and denies in part defendant’s motion.

I. BACKGROUND

A. Factual History1

Plaintiff S & M Management Incorporated is a Pennsylvania corporation located in Milford, Pennsylvania. Compl. 11. In September 1999, plaintiff entered into a construction contract with the United States Department of Veterans Affairs (“VA”) to replace the lateral steam lines at the Castle Point Campus of the Veterans Affairs Hudson Valley Healthcare System. Id. H4; App. 4, 353. The VA issued a Notice to Proceed on November 9, 1999, which, among other things, notified plaintiff that Mr. Michael Shaugh-nessy had been designated as the contracting officer’s technical representative pursuant to the contract. App. 355-56. The VA included a copy of the delegation of authority with the Notice to Proceed. Id. at 356.

On October 17, 2001, after construction had concluded, the VA conducted a final inspection. Id. at 357; Compl. Ex. A at 4. Subsequently, in a December 5, 2001 letter, the contracting officer notified plaintiff that “[t]he completed construction was found to be in accordance with the contract drawings and specifications except for the items listed on the enclosed punch-list.” App. 357. The contracting officer noted that work on the punchlist items had to be completed within thirty days and that the VA would withhold a detainment fee “from future progress payments to cover the cost of payrolls, daily logs and punchlist items.” Id. Plaintiff responded to the contracting officer’s letter on December 13, 2001. Id. at 361-63; Compl. Ex. A at 1, 4. After noting that it had addressed most of the punchlist items prior to its receipt of the December 5, 2001 letter, plaintiff identified several issues implicated by the punchlist and noted that it was willing to undertake the associated work as a change. App. 361-63. The contracting officer responded to plaintiffs letter on February 14, 2002. Id. at 373-75. After specifically addressing each of plaintiffs contentions and identifying the relevant contract provisions, the contracting officer asserted that plaintiff still had not “accomplished the majority of the items on the original punchlist,” and that if it did not address the items within the next fifteen days, the VA would complete the punchlist items, with plaintiff being re[243]*243sponsible for any costs over the allocated amount. Id. Plaintiff, in turn, responded to the contracting officer’s letter on February 21, 2002, addressing the VA’s positions point by point, and demanding payment pursuant to the contracts payment provision. Compl. Ex. A. After reviewing the contents of plaintiff’s letter, the VA’s Chief of Planning and Design, Joseph DiLossi, prepared a memorandum for the contracting officer-dated February 25, 2002-eommenting on plaintiffs assertions. App. 383-84.

After some time had passed, plaintiff sent the contracting officer a letter, dated August 5, 2002, “asserting its rights to make a written demand” for payment in full pursuant to the contract. Compl. Ex. B. The contracting officer responded to plaintiff’s letter on February 25, 2003, requesting that plaintiff “submit a copy of its claim.”2 Compl. Ex. C. In a March 24, 2003 letter, plaintiff indicated that it had already submitted its claim and provided the contracting officer with another copy of its February 21, 2002 letter. Compl. Ex. D. The issues constituting plaintiff’s claim, as discussed in the letters and memorandum, are described below.

1. Compensators in Manholes 18A, 18B, 18E, 25, and 25B, and Building # 1

The punchlist identified missing compen-sators in five manholes-Manholes 18A, 18B, 18E, 25B, and 25-and in Building # l.3 App. 359-60. Plaintiff asserted in its December 13, 2001 letter that the “missing compensa-tors ... were not part of the contracted for work,” explaining that the contract required only the replacement of previously existing compensators, and not the installation of compensators where “there had been none in the past.” Id. at 361; accord id. at 363. According to plaintiff, its contract interpretation “was confirmed with Michael Shaugh-nessey during the administration of the project.”4 Id. at 361; see also id. at 363 (averring that the work in Building # 1 “had previously been inspected and approved”). In his February 14, 2002 response, the contracting officer noted that drawings showed compensators in the five manholes, that plaintiff was required to “install all required appurtenances to make the system function,” that “the entire steam line that these items [we]re attached to was designed to be replaced,” and, thus, plaintiff was required to install the compensators. Id. at 373; accord id. at 374.

Plaintiff contested the contracting officer’s contract interpretation in its February 21, 2002 letter, asserting that it was unable to find any contract provision requiring it to “install all required appurtenances to make the system function” and alleging that “[t]he responsibility to ensure the system functions [was] that of the design engineer____” Compl. Ex. A at 1; accord id. at 4. In support of its position, plaintiff first referred to the “General Intention” paragraph in the contract, which provided for “the removal of existing steam lines, connections, hangers, etc., ... and the replacement with new steam lines, connections, hangers, etc____” Id. at 2; accord id. at 4. Plaintiff also indicated that a legend on the drawings indicated: “Manhole configurations may not be precise, and are intended to depict the general arrangement of piping, valves, connections, etc. On-site inspection of each manhole is recommended to determine locations & conditions of steam system elements.” Id. at 2; accord id. at 4. In light of these provisions, plaintiff interpreted the contract to require only the replacement of existing compensators, a position with which, according to plaintiff, Mr. Shaughnessy concurred. Id. at 2; accord id. at 4.

In his February 25, 2002 memorandum, Mr. DiLossi reiterated the VA’s position that plaintiff was required to install the com-pensators. App. 383. Expanding on the contracting officer’s previous assertions to plaintiff, Mr. DiLossi indicated that (1) [244]*244“[t]he drawings show compensators in these locations”; (2) the contract “states that the contractor has to install all required appurtenances”; (3) “[a] compensator is an appurtenance” as defined in the contract; and (4) “the entire steam line that these items are attached to was designated to be replaced.” Id. In addition, Mr.

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Bluebook (online)
82 Fed. Cl. 240, 2008 U.S. Claims LEXIS 161, 2008 WL 2488196, Counsel Stack Legal Research, https://law.counselstack.com/opinion/s-m-management-inc-v-united-states-uscfc-2008.