Senate Builders and Construction Managers, Inc. v. United States

131 Fed. Cl. 719, 2017 U.S. Claims LEXIS 416, 2017 WL 1548552
CourtUnited States Court of Federal Claims
DecidedApril 29, 2017
Docket14-1196C
StatusPublished
Cited by1 cases

This text of 131 Fed. Cl. 719 (Senate Builders and Construction Managers, 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
Senate Builders and Construction Managers, Inc. v. United States, 131 Fed. Cl. 719, 2017 U.S. Claims LEXIS 416, 2017 WL 1548552 (uscfc 2017).

Opinion

Breach of contract; equitable adjustment; differing site conditions; implied-in-fact contract; estoppel; excavation; Army Corps of Engineers; summary judgment; unreasonable contract interpretation.

MEMORANDUM OPINION AND ORDER

WOLSKI, Judge.

Plaintiff, Senate Builders and Construction Managers, Inc. (Senate Builders) filed this claim against the United States seeking to recover the costs it incurred importing back-fill in connection with a construction contract between Senate Builders apd the United States, acting through the United States Army Corps of Engineers (Army Corps or the agency). Compl. ¶¶ 2, 9-J1. Pending before the Court are dispositive motions filed by both parties. Senate Builders seeks to recover under a number of legal theories— equitable adjustment, differing site conditions, implied contract, and estoppel, see id. ¶¶ 12-41 — but at bottom, all of its claims hinge on a single contention: that one answer ^provided by the agency to an offeror’s question meant that all soil pt the construction site would be suitable for use as backfill. Id. ¶¶ 8-9. The agency argues that it made no such representation, and that Senate Builder’s argument to the contrary rests upon an unreasonable reading of the contract. Def.’s Mot. for J. on the Pleadings & Summary J. & Appendix (Def.’s Mot.) at 23-24. This dispute, the reasonableness of Senate Builders’ reading of the contract, is the only question before the Court. If the government is correct, all of plaintiffs claims fail. As discussed in more detail below, plaintiffs reading of the contract is unreasonable, and as a consequence, the government’s motion is GRANTED and plaintiffs cross-motion is DENIED.

I. BACKGROUND

A. The Solicitation and Pre-Award Exchanges

On March 13, 2012, the Army Corps issued Solicitation No. W912DS-12-R-0010-00Í5 (the solicitation), for a design/build contract regarding two explosives storage magazines to be located at Picatinny Arsenal in New Jersey. Def.’s App. (DA) at 1, 24-25, 72-73. The contractor was to demolish the two existing - magazines and replace £hem with new structures. Both of these pew structures were to be covered with a minimum of 2 feet of earth, on all sides except the loading-dock side. Id. DA at 8. The contract had two firm-fixed price Contract Line Iterps (CLINsj and one unit price CLIN. DA at 76-77. One firm-fixed price CLIN, CLIN 0003, was for asbestos removal and the unit price CLIN, CLIN 0002, was for rock excavation. Id. The dispute before the Court only concerns the construction of the new structures, which was *721 part of the remaining firm-fixed price CLIN, CLIN 0001. Id.

The solicitation called for certain excavation work to be performed to allow for the installation of the foundations for the new structures as well as trenches for a storm sewer system. Id. at 26, .33, 46. The contractor was directed to “[ejxcavate unsatisfactory materials encountered within the limits of the work below grade and replace with satisfactory materials.” Id. at 34. The solicitation also informed offerors that should they encounter either “unyielding” or “unstable” materials during such excavation those materials were to be replaced with “select granular material.” 1 DA at 35, 39. “Select granular material” was defined in the solicitation as material classified as “GW” or “SW” 2 by ASTM D 2487, a classification scheme incorporated into the contract, DA at 29,172. The solicitation also defined “GW’ or “SW as “satisfactory material,” a term used at various points in that document to refer to soil that was suitable for various purposes, including use as backfill and for embankments. DA at 28, 38, 40-41. The contractor was directed to use “satisfactory materials” that it had excavated for embankments and back-fill, and to dispose of excess satisfactory materials, as well as unsatisfactory materials, but the contractor was not to waste any satisfactory materials. DA at 33-34, 38. The solicitation also provided additional restrictions on the soil that could be used for embankments, limiting the size of the rocks that could be present and requiring that no frozen or organic material be included. DA at 41.

The solicitation also informed offerors that there was “no borrow/material at the Picatin-ny Arsenal” — that is, that the only materials available on the worksite would be the materials that the contractor excavated. DA at 36, 125. Prospective contractors were informed that they would be responsible for obtaining the rights to, and paying all costs associated with, acquiring materials from an offsite borrow. DA at 36. Additionally, the solicitation provided guidelines for submitting test results from a proposed borrow site to the contracting officer, who had to approve any offsite borrow site. DA at 31-32.

Because of the contemplated reuse of excavated soil by the contractor, and the specifications regarding the type of soil that could be used for different purposes, a geotechnical report was included with the solicitation. DA at 6. That report detailed the results of two test borings that had been conducted at the construction site. DA at 9. These borings, one taken from each of the sites where the new buildings were to be erected, DA at 17, indicated that the soil at one of the building sites was “GM” 3 soil, id. at 22. The report for the boring at the other building site left the soil classification section blank, but indicated that the soil was brown gravel, with some sand, little silt, and 13% fines. DA at 23. Soil with these characteristics meets the definition of “GM” soil contained in ATSM D 2487. DA at 174. As noted above, “GM” was not “satisfactory material” within the meaning of the solicitation. DA at 28.

The solicitation informed offerors that there would be a single site visit for all prospective offerors. DA at 136. The provision addressing the site visit warned offerors that they were “responsible to determine existing conditions of the site, and the buildings to be renovated.” Id. at 137. Representatives of Senate Builders did not attend the site visit. DA at 48-50; Ex. A to PL’s Resp. in Opp’n to Def.’s Mot. for J. on the Pleadings & Summ. J. & in Supp. of PL’s Cross-Mot. for Summ. J. and Request for Oral Arg. (PL’s Ex. A) at 1-2; Ex. B to PL’s Resp. In Opp’n to Def.’s Mot. for J. on the Pleadings & Summ. J. & in Supp. of PL’s Cross-Mot. for Summ. J. & Request for Oral Arg. (PL’s Ex. B) at 2.

As noted above, one part of the excavation work the contractor had to perform was dig *722 ging trenches for a storm sewer system. The solicitation informed offerors that, should “unsuitable materials” be encountered below the location where the contractor was to place the bedding for the trenches, such unsuitable material should be “remove[d] and replace[d] with 12 inches of additional bedding, or as directed by the contracting officer.” DA at 45. This instruction, and the drawing to which it was attached, provoked a question from a prospective offeror (not Senate Builders) which is the central focus of this case:

27. Question

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Bluebook (online)
131 Fed. Cl. 719, 2017 U.S. Claims LEXIS 416, 2017 WL 1548552, Counsel Stack Legal Research, https://law.counselstack.com/opinion/senate-builders-and-construction-managers-inc-v-united-states-uscfc-2017.