Tidewater Contractors, Inc. v. United States

131 Fed. Cl. 372, 2017 U.S. Claims LEXIS 252, 2017 WL 1180497
CourtUnited States Court of Federal Claims
DecidedMarch 30, 2017
Docket13-600C
StatusPublished
Cited by1 cases

This text of 131 Fed. Cl. 372 (Tidewater Contractors, 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
Tidewater Contractors, Inc. v. United States, 131 Fed. Cl. 372, 2017 U.S. Claims LEXIS 252, 2017 WL 1180497 (uscfc 2017).

Opinion

RCFC 56; Summary Judgment; No Genuine Issue of Material Fact; Contract Interpretation; Parole Evidence; Binding Agency Directive; Course of Dealing; Common Trade Practice

OPINION AND ORDER

SWEENEY, Judge

In this case, plaintiff Tidewater Contractors, Inc. claims that the United States Department of Transportation’s Federal Highway Administration (“FHWA”) breached an express road construction contract with plaintiff by improperly withholding payments. The crux of the ease concerns the FHWA’s verification of plaintiffs test results regarding the density of its superpave hot asphalt concrete pavement. Specifically, plaintiff claims that (1) the FHWA improperly decided to test all of the core samples for verification purposes; (2) the FHWA failed to follow proper procedures when conducting verification testing; (3) the FHWA’s verification testing was untimely; (4) FHWA personnel mishandled the core samples, causing damage; (5) the FHWA improperly-rejected plaintiffs offer to take additional core samples; (6) the FHWA improperly initiated a noncontractual method of acceptance of the work when it visually inspected the pavement; and (7) the FHWA improperly transferred contract funds to Crook County, Oregon officials as payment for an asphalt surface treatment of the road.

Defendant United States now moves the court for summary judgment pursuant to Rule 56 of the Rules of the United States Court of Federal Claims (“RCFC”). The motion is fully briefed, and the court deems oral argument unnecessary. For the reasons set forth below, the court grants defendant’s motion.

I. BACKGROUND

In its motion for summary judgment, defendant provides -a statement of the case. See Def.’s Mot. 1-23. In its response, plaintiff states: “Pursuant to RCFC 5.4(a)(3), Tidewater adopts the Government’s statement of the case, with the exceptions discussed in the Argument section, below.” Pl.’s Resp. 1. The facts described herein are derived from both parties’ submissions, including the attached appendices.

A. The Contract

Plaintiff is an Oregon corporation. Compl. ¶ 2. On May Í, 2009, plaintiff entered into a contract with the FHWA for the paving of 7.91 miles of Beaver Creek Road in Crook County, Oregon. Id. ¶ 3; Def.’s Mot. Al, A9, A599. The total value of the contract was $6,228,652.58, Def.’s Mot. A31, A599, including approximately $1.6 million for the super-pave pavement portion of the contract based on estimated quantities, id. at A21, A27. By its own terms, the contract, Contract No. DTFH70-09-C-0005, is “governed by the Federal Acquisition Regulation (“FAR”), agency supplemental regulations, and the Standard Specifications for Construction of Roads and Bridges on Federal Highway Projects, FP-03 Metric Units [ (“FP-03”) ].” Id. at Adi; accord id. at A13. The FP-03 is, in turn, specifically amended and supplemented by the Special Contract Requirements (“SCRs”). Id. at A8, A160.

1. Density Testing — Superpave Hot Asphalt Concrete Pavement

Section 401 of the FP-03, as modified by section 401 of the SCRs, provides the specifications for superpave hot asphalt concrete pavement. See id. at A240-50, A358-78. Pursuant' to these specifications, plaintiff was to cut core samples from the compacted pavement, test the core samples, and then deliver the core samples to the contracting officer. Id. at A250, A368. Sampling and testing requirements are contained in Table 401-6. Id. at A247-50. With respect to sampling, Table 401-6 indicates that plaintiff was to obtain *378 core samples “not later than 12 hours after final rolling.” Id. at A250. With respect to testing, Table 401-6 indicates that the core density or bulk specific gravity (“Gmb”) of the core samples is determined by using the American Association of State Highway and Transportation Officials (“AASHTO”) .T 166 test. Id. at A249, A601. Section 106.01 of the SCRs requires the parties to use the FHWA’s modified AASHTO procedures, contained in the Western Federal Lands Highway Division (‘WFLHD”) Supplements to Nationally Developed Standard Test Procedures, known as the T 166-94 or modified T 166 test. Id. at A171, A379. The modified T 166 test “involves submerging a core sample in a water bath, removing the sample, drying the sample, and using a formula that considers the weight of the sample during various points of the test in order to calculate the bulk specific gravity.” Id. at 6 (citing id. at A379-81). Table 401-6 further provides that the theoretical maximum specific gravity (density) (“Gmm”) is determined by using the AASHTO T 209 test, which is also referred to as the T 209 rice test due to the appearance of the device used to conduct the test — a pycnometer. 1 Id. at A249, A384-98, A601, A664. The sample for the rice test is takfen from “[b]ehind [the] paver before compacting.” Id. at A249. The rice test must be performed at least once daily, and results must be reported within four hours of the test’s completion. Id.

Ultitoately, the compaction percentage, or density, is determined by dividing the Gmb by the Gmm, and then multiplying the result by one hundred percent. Id. at A601, A774-76. See generally id. at A601-38 (worksheets); PL’s Resp. A4-41 (same). Section 401.14 of the FP-03 set 91.0 percent as the minimum acceptable compaction percentage. Def.’s Mot. A368.

2. Inspection — Generally

In addition to specifying pavement testing procedures, the contract provided for the inspection of plaintiffs work. Section 62.246-12 of the FAR addresses plaintiffs inspection obligations and provides:

(b) The Contractor shall maintain an adequate inspection system and perform such inspections as will ensure that the work performed under the contract conforms to contract requirements. The Contractor shall maintain complete inspection records and make them available to the Government. All work shall be conducted under the general direction of the Contracting Officer and is subject to Government inspection and test[ing] at all places and at all reasonable times before acceptance to ensure strict compliance with the terms of the contract.

Id. at A129. In addition, Section 106.01 of the FP-03 provides:

The Government may inspect, sample, or test all work at any time before final acceptance of the project. When the Government tests work, copies of test reports are furnished to the Contractor upon request. Government tests may or may not be performed at the work site. If Contractor testing and inspection is verified by the Government, the Contractor’s results may be used by the Government to evaluate work for acceptance. Do not rely on the availability of Government test results for process control.

Id. at A342.

3. Acceptance — Generally

The contract also described the FHWA’s methods for accepting plaintiffs work. Section 106.01 of the FP-03 provides:

Acceptable work conforming to the contract will be paid for at the contract unit bid price. Four methods of determining conformity and accepting work are described in Subsections 106.02 to 106.06 inclusive. The primary method of acceptance is specified in each Section of work.

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Cite This Page — Counsel Stack

Bluebook (online)
131 Fed. Cl. 372, 2017 U.S. Claims LEXIS 252, 2017 WL 1180497, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tidewater-contractors-inc-v-united-states-uscfc-2017.