Seair Transport Services, Inc. v. United States

CourtUnited States Court of Federal Claims
DecidedJanuary 15, 2020
Docket19-171
StatusUnpublished

This text of Seair Transport Services, Inc. v. United States (Seair Transport Services, 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
Seair Transport Services, Inc. v. United States, (uscfc 2020).

Opinion

In the United States Court of Federal Claims No. 19-171C Filed: January 15, 2020 NOT FOR PUBLICATION

) SEAIR TRANSPORT SERVICES, INC., ) ) Contract Disputes Act; 41 U.S.C. §§ Plaintiff, ) 7101, et seq.; RCFC 12(b)(1); Subject- ) Matter Jurisdiction; RCFC 12(b)(6); v. ) Failure to State A Claim; RCFC 26; ) RCFC 9(k); Promissory Estoppel. THE UNITED STATES, ) ) Defendant. ) )

Joseph J. D’Erasmo, Counsel of Record, Joseph J. D’Erasmo & Associates, Rockville, MD, for plaintiff.

Robert R. Kiepura, Trial Attorney, Martin F. Hockey, Jr., Deputy Director, Robert E. Kirschman, Jr., Director, Joseph H. Hunt, Assistant Attorney General, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washington, DC; Allen Lotz, Of Counsel, Coast Guard Aviation Logistics Center, Elizabeth City, NC, for defendant.

MEMORANDUM OPINION AND ORDER

GRIGGSBY, Judge

I. INTRODUCTION

In this Contract Disputes Act (“CDA”) action, plaintiff, SEAIR Transport Services, Inc. (“SEAIR”), alleges that the United States Coast Guard’s Aviation Logistics Center (the “ALC”) failed to fully compensate SEAIR for certain work performed under a contract to provide maintenance work on Air Force H60 helicopters. Compl. at ¶¶ 1-7. In addition, SEAIR alleges that the ALC improperly denied its request for an equitable adjustment related to certain work that SEAIR performed under a separate contract for the rewiring of Air Force H60 and H65 aircraft. Id. at ¶¶ 8-13.

The government has moved to dismiss this matter for lack of subject-matter jurisdiction and for failure to state a claim upon which relief can be granted, pursuant to Rules 12(b)(1) and (b)(6) of the Rules of the United States Court of Federal Claims (“RCFC”). See generally Def. Mot. SEAIR has also moved for limited discovery pending the resolution of the government’s motion to dismiss, pursuant to RCFC 26. See generally Pl. Mot. For the reasons discussed below, the Court: (1) GRANTS the government’s motion to dismiss; (2) DENIES plaintiff’s motion for limited discovery; and (3) DISMISSES the complaint.

II. FACTUAL AND PROCEDURAL BACKGROUND1

A. Factual Background

This Contract Disputes Act matter involves claims related to two contracts by and between SEAIR and the ALC.

First, SEAIR alleges that the ALC breached a contract requiring that SEAIR provide certain maintenance work on Air Force H60 helicopters (the “JDLM Contract”), by failing to fully compensate SEAIR for the work performed under that contract after the government terminated the contract for default. Compl. at ¶¶ 1-7. Second, SEAIR alleges that the ALC improperly denied its request for an equitable adjudgment for work performed under a contract for the rewiring of Air Force H60 and H65 aircraft (the “Rewiring Contract”). Id. at ¶¶ 8-13. As relief, SEAIR seeks to recover monetary damages in the amount of $2,315,879.15 for the alleged breach of the JDLM Contract and monetary damages in the amount of $2,751,013.71 in connection with the Rewiring Contract, plus interest, costs and attorneys’ fees. Id. at 3-4.

As background, SEAIR is a women-owned small business that provides aircraft maintenance and associated services to agencies of the Federal Government. Id. at 1. In 2010, the ALC contracted with SEAIR to provide certain engineering, maintenance, repair and aircraft rewiring services for the United States Coast Guard (“Coast Guard”). Def. Mot. at 2, 4.

1. The JDLM Contract

On August 24, 2010, the ALC awarded Contract No. HSCG38-10-D-J00007, entitled “Joint Depot Level Maintenance (“JDLM”) and Associated Services on United States Air Force H60 Aircraft, United States Coast Guard, Aviation Logistics Center, Elizabeth City, NC,” to SEAIR. Def. App’x at 10; Def. Mot. at 2-3. The JDLM Contract involves on-site maintenance,

1 The facts recited in this Memorandum Opinion and Order are taken from the complaint (“Compl.”) and the exhibits attached thereto (“Compl. Ex.”); the government’s motion to dismiss (“Def. Mot.”) and the appendix attached thereto (“Def. App’x”); and plaintiff’s response and opposition to the government’s motion to dismiss (“Pl. Resp.”). Unless otherwise noted, the facts recited herein are undisputed.

2 technical and engineering support in the overhaul, repair, modification and servicing of Air Force H60 helicopters at the ALC. Def. App’x at 10.

The ALC procured work under the JDLM Contract by issuing various task orders to SEAIR. See id. at 34-187. Pursuant to these task orders, SEAIR primarily provided maintenance and repair services for two Coast Guard helicopters known as aircraft numbers 90- 26231 and 92-26465. Id. at 33.

Specifically relevant to this dispute, the ALC’s contracting officer issued a notice of termination for default for the JDLM Contract on December 7, 2015. Compl. at ¶ 3. The ALC issued this notice due to SEAIR’s alleged failure to deliver requested services by required delivery dates and to make reasonable progress under certain task orders. Id.

After SEAIR informed the ALC’s contracting officer that it would not appeal the contracting officer’s decision to terminate the JDLM Contract for default, SEAIR and the ALC engaged in negotiations to reach an agreement on the amount due to SEAIR for work, labor and supplies for which payment had not yet been received. Compl. at ¶ 5; Def. Mot. at 5. Once these negotiations were complete, SEAIR sent the ALC contracting officer a settlement proposal on December 6, 2016. Def. App’x at 213-216.

On or about August 29, 2017, the Coast Guard acknowledged that the government owed SEAIR $140,341.16 for work performed under the JDLM Contract. Compl. at ¶ 6; Def. Mot. at 5. Shortly thereafter, SEAIR received payment in the amount of $140,341.16. Compl. at ¶ 7. SEAIR later demanded additional payments from the ALC for the work that SEAIR maintained that it completed under the JDLM Contract in the amount of $2,315,879.15. Id. at Ex. 1.

On October 4, 2018, counsel for the ALC sent an email to SEAIR stating that the ALC believed that SEAIR had received payment for all of the work that SEAIR performed under the JDLM Contract. Pl. Resp. Ex. 1. It is undisputed that SEAIR did not submit a CDA claim to the ALC contracting officer seeking payment for additional work performed under the JDLM Contract. See Compl. at ¶¶ 1-7 (showing that SEAIR did not submit a CDA claim for worked performed under the JDLM Contract); Def. Mot. at 12.

3 2. The Rewiring Contract

On August 24, 2010, the ALC awarded Contract No. HSCG38-10-J00008, entitled “Onsite H60 Aircraft Complete Rewiring and H65 Aircraft Select Wiring Replacement, United States Coast Guard, Aviation Logistics Center, Elizabeth City, NC,” to SEAIR. Compl. at ¶ 8; Def. Mot. at 3. Pursuant to the terms of the Rewiring Contract, SEAIR was required to rewire certain Coast Guard H60 aircraft “within a 45 calendar day period.” Def. App’x at 193; see also Compl. at ¶ 10; Def. Mot. at 4.

Specifically relevant to this dispute, the Rewiring Contract contains a contracting officer authority provision which provides that:

In no event shall any understanding or agreement between the Contractor and any Government employee other than the Contracting Officer on any contract, modification, change order, letter or verbal direction to the Contractor be effective or binding upon the Government. All such actions must be formalized by a proper contractual document executed by an appointed Contracting Officer. The Contractor is hereby put on notice that in the event a Government employee other than the Contracting Officer directs a change in the work to be performed, it is the Contractor’s responsibility to make inquiry of the Contracting Officer before making the deviation.

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