Sam Gray Enterprises, Inc. v. United States

43 Cont. Cas. Fed. 77,467, 43 Fed. Cl. 596, 1999 U.S. Claims LEXIS 97, 1999 WL 285031
CourtUnited States Court of Federal Claims
DecidedMay 5, 1999
DocketNo. 95-704C
StatusPublished
Cited by12 cases

This text of 43 Cont. Cas. Fed. 77,467 (Sam Gray Enterprises, 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
Sam Gray Enterprises, Inc. v. United States, 43 Cont. Cas. Fed. 77,467, 43 Fed. Cl. 596, 1999 U.S. Claims LEXIS 97, 1999 WL 285031 (uscfc 1999).

Opinion

OPINION

ALLEGRA, Judge.

This government contract ease is before the court on defendant’s motion to dismiss and cross-motions for summary judgment. At issue is whether the United States entered into a contract with Sam Gray Enterprises to house employees of government contractors who were working on a drug interdiction program in the Bahamas. Alter carefully reviewing the submissions of the parties, and following oral argument, the court concludes that defendant’s motion for summary judgment should be granted.

A. Facts

In the mid-1980’s, the United States Customs Service (Customs Service) maintained a radar surveillance operation as part of a drug interdiction program in the Bahamas. In 1986, the Customs Service awarded a contract to Westinghouse, Defense and Electronics Systems Company (DESCO), for the production and delivery of a tethered aeros-tat system to be installed at George Town, Great Exuma Island, Bahama. In August 1989, representatives of the Customs Service, DESCO, and the United States Coast Guard (Coast Guard) met to discuss the shortage of housing in George Town, Bahamas for DES-CO personnel working on the aerostat project.

On August 30, 1989, Sam Gray, Jr., a citizen and resident of the Bahamas involved in the real estate business, sent a “Proposal to Provide Housing for DESCO Personnel” to B. Portell, Deputy Program Manager of DESCO. The document stated that “this proposal is in response to a verbal request from Mr. B. Portell to provide housing for twenty-six DESCO persons who will be operating the U.S. Customs/US Coast Guard Ae-rostat Site.” The proposal detailed the location of an apartment building to be built by plaintiff and the amenities to be included in the apartment units. The proposal further stated:

8. To implement this proposal a letter of commitment to occupy will be required. No money will be required. The letter of commitment to occupy should state a minimum obligation of five (5) years with the necessary contingent should it be mutually and beneficial to terminate, or extend this agreement.
9. The lease agreement should provide for a monthly lease payment of 28,500 U.S. dollars____
10. Construction will begin immediately upon receipt of your acceptance of this proposal and will be completed within six (6) months from go-ahead.

On September 13, 1989, Raymond D. Mintz, the Director of the Office of Enforcement Support at the Customs Service, wrote to Martin Cheshes, the Deputy Chief of Mission at the United States Embassy in the Bahamas, advising that the Customs Service had directed DESCO to locate and lease housing for aerostat site personnel in George Town, Bahamas. Mr. Mintz further informed Mr. Cheshes that the preferred housing proposal was “to lease a housing complex for an anticipated term of 5 years.” Mr. Mintz added: “Since this housing has yet to be built, the implementation of the proposal requires DESCO to provide a letter of in-tenf/commitment to lease. DESCO is prepared to provide this upon receipt of our notification to proceed.” Mr. Mintz also asked Mr. Cheshes to “coordinate with any interested U.S. Government parties” who [598]*598might be interested in leasing space in the subject housing complex.

On October 24, 1989, Ernest Wims, a contracting officer for the Customs Service, wrote to Robert Clark of DESCO and expressed “the U.S. Customs Service interest in acquiring 24 housing units from Mr. Sam Gray as presented to us at our meeting with DESCO and U.S. Coast Guard Personnel on August 31, 1989.” Mr. Wims also requested that “DESCO pass on to Mr. Gray our interest in 24 units and verify what is the breakeven point for Mr. Gray to permit him to begin construction.” By letter dated November 6, 1989. Mr. Wires notified J.A. Nowot-ny, a contracting officer for the Coast Guard, that the “U.S. Customs Service has confirmed with DESCO the inteni/interest in acquiring 24 housing units ... from Mr. Sam Gray in Georgetown, Bahamas.” Mr. Nowot-ny responded to Mr. Wims on November 16, 1989, advising that the Coast Guard recommended obtaining housing from Mr. Gray. Mr. Nowotny further stated, “[pjlease direct DESCO to coordinate the construction of this housing facility with the American Embassy in Nassau, Bahamas, and assure that, Mr. Gray is sent an appropriate letter of intent. ... Mr. Gray requests that he receive a letter of intent so that he may begin construction of an appropriate amount of housing units.”

On November 28,1989, Mr. Wims, with the written concurrence of Mr. Nowotny, sent a letter to Mr. Clark of DESCO, stating: “[t]he U.S. Customs Service has been requested by the U.S. Coast Guard to direct DESCO to coordinate the acquisition of housing for the Coast Guard through the American Embassy in the Bahamas and to arrange for a letter of intent to be provided by the Embassy to Mr. Gray.” Thereafter, on November 30, 1989, Martin Cheshes, as the Charge d’affaires of the United States Embassy in the Bahamas,1 wrote Mr. Gray, stating:

This letter is to confirm our understanding reference the leasing of housing for Cari-ball II personnel. The United States Coast Guard and Customs Service intend to lease housing from Sam Gray Enterprises for twenty four individuals for a five year period, upon completion of construction or June 1990, whichever comes first. The United States agrees to the cost as quoted in the original proposal, and expects exclusive rights to the specified housing for the full five year period.

Mr. Gray then wrote back to Mr. Cheshes on January 10, 1990, thanking him for his letter and asking him to “confirm this letter to Mr. R. Sands, the Manager of the George Town Branch of the Bank of Nova Scotia and also let him know that you would be paying the rents direct to the bank to my credit.” Mr. James Bumpus, the Narcotics Coordinator for the United States Embassy in the Bahamas, subsequently wrote to Mr. Sands of the Bank of Nova Scotia on January 19, 1990, stating:

Mr. Samuel Gray, Jr., has asked that I write to inform you that the United States Coast Guard and Customs Service intend to lease housing from Sam Gray Enterprises for twenty-four individuals for a five year period, upon completion of construction or June 1990, whichever comes first. The United States agrees to the cost as quoted in the original proposal, and expects exclusive rights to the specified housing for the full five year period.
At Mr. Gray’s request, the United States Government intends to pay the rents for these accommodations directly to his account at your bank.

Plaintiff alleges that as a result of the assurances provided by the November 30th and January 19th letters, it constructed 19 apartment units in George Town, Bahamas at a cost of $2 million. On July 25, 1990, TCOM, L.P., a government contractor, replaced DESCO as the contractor on the ae-rostat project. Plaintiff claims that it completed construction of the apartments on or about September 17, 1990. By letter dated September 17, 1990, Mr. Gray wrote to Mr. Cheshes referencing the “U.S. Embassy let[599]*599ter of Intent [of] 30th November, 89.” The letter provides, in pertinent part:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Moghadam v. United States
Federal Claims, 2018
Lublin Corp. v. United States
98 Fed. Cl. 53 (Federal Claims, 2011)
Alli v. United States
83 Fed. Cl. 250 (Federal Claims, 2008)
Information Systems & Networks, Corp. v. United States
81 Fed. Cl. 740 (Federal Claims, 2008)
Stout Road Associates., Inc. v. United States
80 Fed. Cl. 754 (Federal Claims, 2008)
Telenor Satellite Services, Inc. v. United States
71 Fed. Cl. 114 (Federal Claims, 2006)
Double AA Builders, Ltd. v. Grand State Construction L.L.C.
114 P.3d 835 (Court of Appeals of Arizona, 2005)
Cornejo-Ortega v. United States
61 Fed. Cl. 371 (Federal Claims, 2004)
De Archibold v. United States
57 Fed. Cl. 29 (Federal Claims, 2003)
Corrales v. United States
56 Fed. Cl. 283 (Federal Claims, 2003)
North American Construction Corp. v. United States
56 Fed. Cl. 73 (Federal Claims, 2003)
American Heritage Bancorp v. United States
56 Fed. Cl. 596 (Federal Claims, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
43 Cont. Cas. Fed. 77,467, 43 Fed. Cl. 596, 1999 U.S. Claims LEXIS 97, 1999 WL 285031, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sam-gray-enterprises-inc-v-united-states-uscfc-1999.