Technassociates, Inc. v. United States

34 Cont. Cas. Fed. 75,435, 14 Cl. Ct. 200, 1988 U.S. Claims LEXIS 8, 1988 WL 6417
CourtUnited States Court of Claims
DecidedJanuary 27, 1988
DocketNo. 705-86C
StatusPublished
Cited by8 cases

This text of 34 Cont. Cas. Fed. 75,435 (Technassociates, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Technassociates, Inc. v. United States, 34 Cont. Cas. Fed. 75,435, 14 Cl. Ct. 200, 1988 U.S. Claims LEXIS 8, 1988 WL 6417 (cc 1988).

Opinion

[202]*202OPINION

YOCK, Judge.

This contract case is currently before the Court on defendant’s motion to dismiss. For the reasons discussed herein, the defendant’s motion is granted and the plaintiff’s complaint is to be dismissed without prejudice.

Facts

On September 27,1982, the Veterans Administration (VA) entered into a contract (No. V101(93)P-913) with the Small Business Administration (SBA) pursuant to section 8(a) of the Small Business Administration Act, 15 U.S.C. § 637(a) (1982). The SBA was to provide technical analysis, design and development of computer software for an Interactive Medical Facilities Planning System. The contract consisted of two phases. Phase I was a cost plus fixed-fee arrangement for the analysis and design of the software. The ceiling price for Phase I of the project was $137,772 with a six-month term from the date of notice to proceed. Phase II was a firm fixed-price arrangement for the development, implementation and testing of the system designed in Phase I. The firm fixed price for Phase II was to be negotiated upon completion of the specified term for Phase I.

On September 30, 1982, the SBA entered into a subcontract with the plaintiff, Tech-nassociates, Inc. (TI), for performance of the VA contract (Subcontract No. SB3-4-0-8(a)-82-G-4983). The responsibility for the administration of the subcontract was delegated by the SBA to the VA.

TI fully performed Phase I of the subcontract. The Phase I designs and deliverables were accepted by the Government on or about August 19, 1983. Negotiations as to the firm fixed price for Phase II of the subcontract were then entered into and agreed upon. Development and implementation of Phase II was to commence on September 1, 1983 and be completed on August 31, 1984 for a fixed price of some $392,919.

Almost immediately, TI began to experience difficulties meeting delivery schedules under Phase II of the subcontract. On October 20, 1983, the contracting officer wrote to TI stating (in pertinent part):

It has been brought to my attention that we are experiencing problems with the performance of work as contemplated by Phase II of contract V101(93)P-913. This was discussed in the first progress meeting which was attended by your company representatives and the contracting officers [sic] technical representative.
An invoice was presented for payment of 1/12th of the phase II amount although the delivered work compared to the work which should have been delivered was insufficient due to lack of performance. It was also brought to my attention that your company is experiencing difficulties in cash flow and subcontracting for this contract.
* * * * * *
The COTR and I will closely monitor your progress for the next two months and if considerable improved performance is not evident appropriate action will be taken.
* * * * * *
Please provide the plan requested above within five days after the receipt of this letter. Should you have any questions in this matter please feel free to contact me at 389-3125.

Again, on February 21, 1984, the Contracting Officer’s Technical Representative (COTR) notified the contracting officer by memorandum that the plaintiff was still experiencing problems in performing Phase II of the contract. He complained specifically about ineffectual project scheduling, failure to provide required documentation, inadequate resource management and failure of the contractor to notify the COTR or contracting officer of key personnel changes. Thereafter, on March 2, 1984, the contracting officer met with the contractor for the purpose of discussing its poor performance. The agreements reached at that meeting were confirmed by the contracting officer in a letter dated [203]*203March 5, 1984 in which he stated in pertinent part:

I expect this contract to be completed in accordance with the terms and conditions contained therein. I will take whatever action is necessary to see that this happens. I will be taking a stronger more active role in this contract until completed.

It was agreed at the March 2 meeting that the plaintiff would deliver a revised management plan and schedule to ensure completion of the contract. In its letter of March 2, 1984, to the contracting officer, TI acknowledged that “contract performance to date has been lagging behind the planned schedule and that recent staff changes have caused concerns about [TI’s] ability to adequately complete the contract.” As a result, TI also agreed to provide weekly status reports to the contracting officer and to inform the VA of any key personnel changes. TI’s revised management plan noted September 10, 1984 as the contract completion date, with training and development to be completed by November 30, 1984. Although the completion date had not been formally extended, the contracting officer agreed to the delay at no additional cost to the Government.

The plaintiffs September 3, 1984 status report contained a revised work plan indicating that work would be completed by November 26, 1984. Once again, the contracting officer consented to the delay. The next status report was received by the contracting officer on October 1, 1984. This report again referenced November 26, 1984 as the project completion date. On October 15, 1984, the COTR informed the contracting officer that no work was performed on the contract from October 8-12, 1984.

Thereafter, in November 1984, the plaintiff submitted a revised schedule which indicated February 1985 as the new completion date. The schedule called for a demonstration of several parts of the program (modules) on November 16, 1984. On that date, all modules failed to perform as required.

On December 10, 1984, the contracting officer wrote to the contractor to again confirm the various agreements reached between TI and the VA at the meeting held between the parties on December 4, 1984. That letter recapped the various events that had occurred since the start of Phase II. He concluded in pertinent part that:

An analysis of the above presented facts reveals that Technassociates has failed to appropriately manage the project, has misrepresented in the status reports the percentage of completion and has continuously submitted work plans which have not been adhered to.

He also indicated that the letter should serve as notification required by the Default Clause of the contract prior to any action to terminate the contract.

On January 4, 1985, the plaintiff submitted a revised work plan providing for completion of the project by June 1, 1985. In early February, TI again revised its work plan; however, no change in the contract completion date was made. By letter dated March 4, 1985, the plaintiff submitted a written request for a stop work agreement. The request was “premised upon the extreme financial hardship Tech-nassociates would experience at the rate of expenditure necessary to meet existing delivery schedules without the recognition by VA of responsibility for changes in contract scope and attendant increased costs associated with delays in system access.”

On March 12, 1985, the VA provided TI with written notice of default with ten days to cure all alleged deficiencies.

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Bluebook (online)
34 Cont. Cas. Fed. 75,435, 14 Cl. Ct. 200, 1988 U.S. Claims LEXIS 8, 1988 WL 6417, Counsel Stack Legal Research, https://law.counselstack.com/opinion/technassociates-inc-v-united-states-cc-1988.