United Constructors, LLC v. United States

95 Fed. Cl. 26, 2010 U.S. Claims LEXIS 811, 2010 WL 4162156
CourtUnited States Court of Federal Claims
DecidedOctober 18, 2010
DocketNo. 08-757C
StatusPublished
Cited by2 cases

This text of 95 Fed. Cl. 26 (United Constructors, LLC 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
United Constructors, LLC v. United States, 95 Fed. Cl. 26, 2010 U.S. Claims LEXIS 811, 2010 WL 4162156 (uscfc 2010).

Opinion

OPINION AND ORDER

GEORGE W. MILLER, Judge.

United Constructors (“United”) alleges that it is entitled to additional compensation for removal of certain rocks it encountered on a construction site at the Fallen Leaf Lake Campground in South Lake Tahoe, California, as well as for delays to its work it contends were caused by the U.S. Forest Service. After trial, the court concludes that plaintiff has not demonstrated entitlement to the requested equitable adjustments and therefore directs entry of judgment in favor of defendant.

I. Background1

United is the most recent in a series of construction companies owned and operated by Bud Barnes and his sons, including Jim Barnes. Trial Transcript at 42-49 (docket entries 61-69, filed June 9 & 10, 2010) (“TV.”). Previous Barnes-related entities engaged in a wide range of construction projects, mostly involving underground utilities. Id. at 43-49.

After its formation in 2005, the first project upon which United bid was phase one of the construction of the Fallen Leaf Lake Campground Water System Improvement Project located within the Lake Tahoe Basin Management Unit in South Lake Tahoe, California. Id. at 307; Compl. ¶¶ 1-4 (docket entry 1, Oct. 23, 2008). The principal requirements of the contract were: (1) replacing an old water storage tank with a new, larger tank; (2) replacing approximately 1,600 linear feet of underground water main and smaller utilities from the new tank down to Fallen Leaf Lake Road (the “utility trench”); (3) placing a non-eontiguous section of fourteen-inch water line underneath a nearby highway, Highway 89 (referred to as the “jack and bore” project because a hydraulic jack was used to propel the boring equipment under the highway); and (4) installing a pressure-reducing station at a third location on the campground. Joint Exhibit (“JX”) 1 at 5.

A. Contract Terms and Site Visit

United seeks compensation for a “Type I” differing site condition based upon a claim that a “subsurface or latent physical condition” existed at the site which “differ[ed] [28]*28materially from those indicated in this contract.” 2 FAR § 52.236-2(a)(l). United contends that the bid documents indicated that the amount of “smaller boulders” — rocks larger than three inches in diameter but possessing a volume smaller than one-half cubic yard — to be encountered in excavating the utility trench would be approximately one percent of the total excavation. Because the percentage of smaller boulders was substantially higher than one percent, United contends that it is entitled to compensation due to a Type I differing site condition.3 Several provisions of the contract are pertinent to these allegations.

The bid documents incorporated FAR clauses 52.236-2, Differing Site Conditions,4 and 52.236-3, Site Investigations and Conditions Affecting the Work,5 and thus “urged and expected” offerors “to inspect the site where the work will be performed.” JX 1 at 75. Further, the technical specifications included an agreement that “[u]pon beginning the earthwork, [the] Contractor represents that he has inspected the site and satisfied himself as to actual grades and levels and the true conditions under which the work is to be performed.” JX 1 at 143.

The Forest Service held an optional pre-bid site visit on August 9, 2005, which was conducted by the Forest Service Contracting Officer Representative, Tom Torres. JX 4; JX 1 at 5; Tr. at 58. United did not attend [29]*29that meeting. JX 4; Tr. at 494. While Mr. Torres did not recall the subject of the present dispute — the quantity of subsurface rock that would be encountered — being discussed at the meeting, he testified that “[i]t was obvious that there was plenty of rock on the ground and that folks would have seen it.” Tr. at 497-98; see also JX 154-A; JX 154-B (contemporaneous photographs of site). Jim Barnes did not participate in the site visit because he felt he was sufficiently familiar with the area, and in preparing United’s bid he relied upon knowledge he gleaned from having previously lived in the Lake Tahoe area and his experience with a construction project at the Truckee Tahoe Airport. Tr. at 307-08, 314-18. He also visited the site with the completed bid in hand immediately before submitting the bid to the Forest Service. JX 98 at 2; Tr. at 319.

The bid documents specified that “[i]f an item is not specifically mentioned, it shall be assumed to be included in the most appropriate bid item,” and there are two bid items that could potentially encompass the utility trenching. JX 1 at 9, 82. The first possibility is bid item 2200(1), titled “Grading/Earthwork,” which sought a price for “all work, materials, equipment, and labor for the grading and earthwork associated with the site improvements” to include “grading, excavating, backfill, compaction, disposal of surplus materials and all appurtenant work.” JX 1 at 10. The pertinent statement of work, specification 2200, provided that:

The work included under this section consists of all grading, excavation, backfilling, compacting, disposal of surplus material, and all other work incidental to the construction of retaining walls, slabs, trenches, walkway and roadway beds, and all other areas shown on the drawings and specified.

JX 1 at 143. Specification 2200 also called for “satisfactory removal and disposal of all materials encountered, regardless of the nature of the materials, the condition of the materials at the time they are excavated, or the manner in which they were excavated.” JX 1 at 146.

The other possible placement for trenching costs was in bid item 2610(2), titled “14" Ductile Iron Pipe (DIP),” which asked the offeror to provide a price per foot for ductile iron pipe (later changed to high density polyethylene (“HDPE”) through contract modification). JX 1 at 11-12; JX 121 at 2. This price per foot was to “include, but not be limited to, trenching, dewatering, bedding, backfilling, furnishing and installing all pipe ... and all other appurtenant work necessary for complete installation of the pipe.” JX 1 at 12. Specification 2610 defined the scope of work as including “furnishing all material, supplies, equipment, tools, transportation, and facilities, and performing all labor and services necessary for required connection with or incidental to furnishing and installing a complete domestic water system as described.” JX 1 at 166.

These bid items “allowed [United] to include its pricing for excavation and backfill associated with the 14 inch pipe trench under at least two different bid items: 02200(1) Cgrading/earthwork’) or 02610(2) (‘14" DIP’).” Defendant’s Proposed Findings of Fact and Conclusions of Law at 9 (docket entry 69, July 22, 2010) (“Def.’s Proposed Findings”).

United asserts that it priced trenching under bid item 2610(2), but its argument for additional compensation relies heavily on a 2200 bid item, namely 2200(3), denominated “Inexcavatable Rock.” Within the Excavation section, the Forest Service requested a price per cubic yard for “work, materials, equipment and labor to remove rock deemed inex-eavatable by the Contracting Officer per the Specifications, by more substantial means such as blasting or hydraulic hammering.

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95 Fed. Cl. 26, 2010 U.S. Claims LEXIS 811, 2010 WL 4162156, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-constructors-llc-v-united-states-uscfc-2010.