Tyger Construction Co. v. United States

39 Cont. Cas. Fed. 76,627, 31 Fed. Cl. 177, 1994 U.S. Claims LEXIS 236, 1994 WL 209855
CourtUnited States Court of Federal Claims
DecidedFebruary 18, 1994
DocketNos. 468-88C, 526-88C and 90-134C
StatusPublished
Cited by9 cases

This text of 39 Cont. Cas. Fed. 76,627 (Tyger Construction Co. 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
Tyger Construction Co. v. United States, 39 Cont. Cas. Fed. 76,627, 31 Fed. Cl. 177, 1994 U.S. Claims LEXIS 236, 1994 WL 209855 (uscfc 1994).

Opinion

OPINION

NETTESHEIM, Judge.

This case is before the court after trial. The claims that were tried involved the mechanical portion of a construction contract between Tyger Construction Co., Inc. (“plaintiff’), and the Food and Drug Administration (the “FDA”), an agency of the United States Department of Health and Human Services (“DHHS”), for an Animal Testing [181]*181Facility in Beltsville, Maryland.1 Plaintiff was the prime contractor in the project and seeks recovery on behalf of itself and one of its subcontractors. In reviewing the testimony and documentary and physical evidence, the court deems that the true picture of this beknighted contractual relationship emerges through a chronological history, with principal reliance on documents contemporaneously generated. Rarely is a fact-intensive construction contract case tried so long after the operative events took place. The challenged specifications issued in 1983; the disputed work was performed in 1984-1986; the key problem was not solved until 1989; the contract was completed in 1991.2 In these circumstances the court reposes a great deal of confidence in the documentary record.

The bedrock issue is whether one contracting party — the FDA, on the one hand, or the prime and its mechanical subcontractor, on the other — bears the ultimate responsibility for this contentious, frustrating, counterproductive, and exorbitantly costly construction project.

FACTS

1. The solicitation and bids

The DHHS issued the Invitation for Bid documentation, Solicitation No. IFB-131-0003-83, on March 15,1983. From the onset of bidding on the subject contract, the bid documents included one set of original specifications, one set of original drawings, and a series of amendments to those original documents. Only amendments pertinent to the present controversy will be discussed. On April 15, 1983, Contracting Officer Calvin E. Watkins, Sr., issued Amendment No. 2 that modified a Constant Volume Regulator (“CVR”) dimension shown in Drawing M-71. Two weeks later on April 29, 1983, Amendment No. 4 issued, changing the bid opening date from May 4, 1983, to May 12, 1983. Then, on May 4, 1983, Amendment No. 5 issued, shifting the bid opening date to May 24, 1983.

Approximately one week later, on May 13, 1983, Contracting Officer Watkins issued Amendment No. 6. Amendment No. 6 consisted of 57 pages, including sketches. Clause 6, entitled “Supervision and Coordination of the Work,” from the “General Conditions” section, was revised. The substitution set forth the following: “The plans and specifications are, in part, [diagrammatic] and show the general arrangement of the work. In such cases, the Contractor, directly or by subcontract, shall complete the design and select and arrange equipment, materials, or components as necessary to provide a complete facility.”

Amendment No. 6 modified section 15920 of the original contract to give the contractor responsibility for installing a fully functional, tested, and wholly compliant Air Flow Control System. Paragraph 1.02D set forth that differential pressure transmitters (“DPT”) could be of only one original equipment manufacturer (“OEM”) industrial instrument manufacturer' system source and that any product mix would not be permitted. The same paragraph provided that all of the integral system interaction and individual instrument performance must be as specified and in accordance with all manufacturer requirements. Further, the contractor was required to furnish certification from the manufacturer that the installation of equipment was in accordance with the manufacturer’s requirements. A new paragraph, 1í 1.02F, added the requirement that the airflow system work must be performed by a specialty subcontractor. General Conditions Clause 20 defined specialty subcontractor as a “subcontractor regularly engaged in the manufacture or installation of the contract items.” The clause further specified:

The specialty subcontractor shall select and combine the materials involved, maintain and have available ... workmen skilled in the specified work. The Special[182]*182ty Subcontractor shall be the manufacturer, be licensed by the manufacturer as an installer, or work under direct supervision of the manufacturer.

Another portion of Amendment No. 6 modified H 2.02 entitled “Control Instruments and Indicators.” Paragraph 2.02A was amended to permit the contracting officer to request that the contractor supply certain specified testing information from the OEM related to verification of performance requirements. The failure of the OEM to provide such corroborating data would be grounds for rejecting the equipment. The original title of H2.03 was changed from “Process Air Volume Pitot Primary Element” to “Air Flow [sic] Measuring Station (AFM)” (“AMS”), and the first line of 112.03A was amended accordingly. The original If 2.03G was substituted to require coordination with section 15800 for the installation of the AMS into the ductwork. Paragraph 2.04 entitled Constant Volume Regulator was substantially amended. These amendments will be discussed in detail below.

Paragraph 3.01 entitled “Installation, System Calibration, Start-up and Service” was also amended to require that the contractor provide calibration and testing services to guarantee the proper operation of the system for one year following the contracting officer’s acceptance. The contractor also was tasked with furnishing evidence that successful supervision, calibration, and start-up services had been provided for similar type projects over a two-year period. A further amendment required that project names and references be provided for the approval of qualifications by the contracting officer.

Finally, Amendment No. 6 contained several general comments that applied to the specifications as a whole. One comment put potential bidders on notice that nothing in the specifications could be construed to create any contractual relationship between the FDA and any of the subcontractors. Pursuant to this comment, contractors were informed that they must employ specialty subcontractors where required in the specifications at no additional expense to the FDA: (The contract work at issue was performed by a specialty subcontractor.) Another comment sought reinforcement of these requirements by holding the contractor responsible for the manufacturer’s performance, including testing and verification, of all specification requirements.

A third general comment notified bidders that all items specified in the contract were to be furnished by the contractor and not the FDA. A last general comment substituted the contracting officer for any references to any authority of the FDA under the contract granted to any entity other than the contracting officer.

John J. Kirlin, Inc., plaintiffs mechanical subcontractor, received bids for airflow instrumentation from three CVR manufacturers — Ultratech Inc.; Brandt Instruments, Inc. (“Brandt”); and Air Monitor Corp. (“Air Monitor”). Ultratech’s bid was $2,244,500.00. After accepting Ultrateeh’s bid, Ultratech and Kirlin negotiated a purchase order for $1,275,950.00. Ultratech was a specialty subcontractor on the project.

A February 22, 1983 pre-bid letter from the Director of Regional Office for Facilities Engineering and Construction (Contracting Officer Watkins) to the Project Officer, Stephen J. Lakner, evidences coordination problems from the outset.

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Bluebook (online)
39 Cont. Cas. Fed. 76,627, 31 Fed. Cl. 177, 1994 U.S. Claims LEXIS 236, 1994 WL 209855, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tyger-construction-co-v-united-states-uscfc-1994.