The Ravens Group, Inc. v. United States

112 Fed. Cl. 39, 2013 U.S. Claims LEXIS 979, 2013 WL 3943503
CourtUnited States Court of Federal Claims
DecidedJuly 26, 2013
Docket07-754C
StatusPublished
Cited by6 cases

This text of 112 Fed. Cl. 39 (The Ravens Group, 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
The Ravens Group, Inc. v. United States, 112 Fed. Cl. 39, 2013 U.S. Claims LEXIS 979, 2013 WL 3943503 (uscfc 2013).

Opinion

Breach of Contract for Negligent, Bad Faith, or Misleading Estimates; Jury Verdict Method; Demonstrating Injury as Part of Breach Claim

OPINION

FIRESTONE, Judge

Pending before the court is the United States’ (“the government” or “the defendant”) motion for summary judgment in this action brought by The Ravens Group, Inc. (“the plaintiff’ or “TRG”), for breach of contract in connection with a contract between TRG and the U.S. Army (“Army”) to provide housing maintenance services at Fort Myer, Virginia and Fort McNair, Washington, D.C. The contract, which was awarded to TRG on August 16, 2004, is identified as a “combined Fixed Price Indefinite Delivery Indefinite Quantity Contract.” TRG filed a six-count complaint under the Contract Disputes Act (“CDA”), 41 U.S.C. § 7103 et seq., and the Tucker Act, 28 U.S.C. § 1491(a)(2), in 2007, alleging various claims for payment of additional work. TRG has agreed to dismiss two of the counts. 1 Three of the remaining four counts — Counts I, II, and III — relate primarily to the plaintiffs contention that the government breached the contract by failing to provide historical workload data and for providing misleading estimates of the number of monthly service calls TRG could expect under the contract. See Compl. 9-11. Specifically, TRG claims that, prior to contract formation, the Army told TRG that it could expect to receive 50 routine service calls per month and one to two non-routine calls per year, and that the plaintiff reasonably relied on these estimates in preparing its bid of *42 $15,000 per month for service calls under the firm fixed price (“FFP”) portion of the contract. Moreover, TRG claims that in addition to requiring it to respond to more calls than it was told to expect, the government also required TRG to provide services to three more units than the 49 units identified in the contract.

The undisputed facts show that that estimate of the number of calls was not correct and that TRG began responding to over 90 service calls per month shortly after the contract was awarded. 2 In Count III, the plaintiff alleges that these facts give rise to a claim for breach of the implied duty of good faith and fair dealing. In Count VI the plaintiff alleges, in the alternative, that the government constructively changed the contract without payment.

The government seeks summary judgment as to all of plaintiffs claims. The government argues that the undisputed facts establish that the Army did not provide negligent or misleading estimates to TRG and that the plaintiffs claim for additional payment associated with responding to more than 50 service calls per month must be rejected on the grounds that TRG failed to keep proper labor hour records to support a claim for additional payment under the terms of the contract. The government also argues that it did not breach the contract by requiring TRG to perform work at certain units not listed in the contract on the grounds that TRG in fact never provided services to more than 49 units as required by the contract. 3

In the alternative, the government seeks summary judgment on the plaintiffs methodology for establishing damages. Assuming TRG can establish that the government breached the contract regarding its estimate in the first instance, the government argues, the plaintiff has nonetheless wrongly assumed it was injured solely for having had to respond to additional calls. Rather, the government argues, where the contract required TRG to maintain records of its service call labor hours, damages may only be established with evidence of excess hours worked.

For the reasons set forth below, the court finds that disputed issues of fact preclude summary judgment with regard to the plaintiffs claim that the government breached the contract by providing negligent or misleading estimates. The court finds that the government is entitled to summary judgment with regard to the plaintiffs claim for breach of contract based on having to provide services at more than 49 units. The court also finds that the government is entitled to summary judgment regarding plaintiffs improper reliance on the jury verdict method in this case.

I. Factual Background 4

A. Maintenance of the GFOQ prior to contract award

General and Flag Officers Quarters (“GFOQ”) is military housing specifically designated for senior officers of the United States military and their families. The GFOQ Executive Management Office (“EMO”) was established to provide program management for the maintenance and repair *43 of GFOQ housing. The GFOQ units at Fort Myer and Fort McNair, which are the subject of this litigation, were each built roughly a century ago. Prior to August 2004 and the establishment of the EMO, they used “in-house” personnel to respond to the majority of the maintenance and repair service calls at GFOQ housing. Spellman Dep. 16, Def.’s Appx. 239. The housing office at the time also used private contractors to provide certain maintenance and repair services in cases where the in-house government personnel were unavailable or unable to perform the required services. TRG, a service disabled, veteran owned small business, was one of the private vendors that serviced GFOQ housing at Fort Myer and Fort McNair prior to the contract award at issue in this litigation. TRG was founded by Lieutenant General (Retired) Joe Ballard, who previously seived as Commander of the United States Army Corps of Engineers and had lived in GFOQ housing at Fort McNair.

The EMO was established in response to criticism by senior officers and their families regarding the failings of this patchwork of private vendors and government personnel. Spellman Dep. 16, Def.’s Appx. 239. Specifically, there were complaints related to the “lag time” between placing service call requests and the completion of maintenance. Clark-Evans Dep. 8, Pl.’s Appx. 2729. In addition, despite their age, GFOQ housing units did not receive “much maintenance” prior to the contract award. Spellman Dep. 29, Pl.’s Appx. 3441^2.

B. The decision to contract out the GFOQ maintenance work and pre-contract communications with TRG

In response to the poor reviews and housing conditions at Fort Myer and Fort McNair, Ms. Dee Spellman, who previously seived as the GFOQ policy manager at Army headquarters, was hired to start the EMO and to seive as its first director. In her previous position as the GFOQ policy manager at Army Headquarters for housing, Ms. Spellman “worked very closely with all the general and flag officer managers throughout Army-wide.” Spellman Dep. 14-15, Pl.’s Appx. 3435-36. Once created, the EMO tasked Ms. Lenora Clark-Evans, the director of contracting at the United States Army Contracting Agency at the Capital District Contracting Center (“CDCC”), 5 with drafting a contract for housing maintenance work at the Fort Myer and Fort McNair GFOQ facilities. Ms.

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Cite This Page — Counsel Stack

Bluebook (online)
112 Fed. Cl. 39, 2013 U.S. Claims LEXIS 979, 2013 WL 3943503, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-ravens-group-inc-v-united-states-uscfc-2013.