Venice Maid Co. v. United States

639 F.2d 690, 28 Cont. Cas. Fed. 80,851, 225 Ct. Cl. 418, 1980 U.S. Ct. Cl. LEXIS 372
CourtUnited States Court of Claims
DecidedNovember 19, 1980
DocketNo. 477-78
StatusPublished
Cited by8 cases

This text of 639 F.2d 690 (Venice Maid Co. 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
Venice Maid Co. v. United States, 639 F.2d 690, 28 Cont. Cas. Fed. 80,851, 225 Ct. Cl. 418, 1980 U.S. Ct. Cl. LEXIS 372 (cc 1980).

Opinion

PER CURIAM:

This case comes before the court on plaintiffs request, filed March 17, 1980, for review by the court of the recommended decision of Trial Judge Robert J. Yock, filed February 20, 1980, pursuant to Rulé 166(c), on the parties’ cross-motions for summary judgment, having been submitted on the briefs and oral argument of counsel. Upon consideration thereof, since the court agrees with the trial judge’s recommended decision, as hereinafter set forth, it hereby affirms and adopts the decision as the basis for its judgment in this case. Accordingly, it is concluded that plaintiff is not entitled to recover, defendant’s cross-motion for summary judgment is granted, plaintiffs motion for summary judgment is denied and the petition is dismissed.

[420]*420OPINION OF TRIAL JUDGE

YOCK, Trial Judge:

This contract case involves an appeal from a decision of the Armed Services Board of Contract Appeals (hereinafter the Board).1 That decision affirmed the contracting officer’s denial of plaintiffs claim to recoup an assessment of excess reprocurement costs. Plaintiffs sole claim here is that the Government failed to mitigate its damages by its failure to award the reprocurement contract to the plaintiff. On cross-motions for summary judgment, the parties seek review of the Board’s decision in accordance with the standards of the Wunderlich Act, 41 U.S.C. §§ 321-22 (1976).

For the reasons outlined herein, the Board’s decision is affirmed.

Background

The pertinent facts found by the Board or otherwise justified by the administrative record are hereinafter set forth.2

On April 11, 1975, plaintiff was awarded a contract (DSA 13H-75-C-2048) by the Defense Personnel Support Center, Philadelphia, Pennsylvania, in the amount of $118,003.20. That contract required the manufacture and delivery of 40,800 cans of chili con carne without beans at various east and west coast delivery points on an f.o.b. destination basis. Delivery was to be accomplished by May 31,1975. This was the first contract plaintiff had received for the item and the procurement office had not had any previous experience with the plaintiff.

The solicitation and contract contained a specification for the manufacture of the chili con carne. The specification for the beef (paragraph 3.2.1) to be used provides in part that:

Beef shall be prepared from fresh chilled or frozen bone-in or boneless triangles, rounds, loins (flank off), ribs (plate off), square cut chucks or any combination of these [421]*421cuts which shall be derived from steer, heifer or cow carcasses.

The specifications also contain quality assurance provisions, which required in pertinent part (paragraph 4.3.1.1) that:

The bone-in or boneless primal cuts of beef shall be examined to determine compliance with 3.2 as concerns foreign color, foreign material or foreign odor, and 3.2.1 as concerns condition, temperature, storage limitation, grade, when specified, and cuts of meat.

Shortly after the contract award, the Government’s quality assurance representative (QAR) was shown the meat plaintiff had purchased and intended to use in performing the contract. The meat consisted of frozen chuck trimmings. The QAR informed plaintiff that the meat could not be used because the specifications called for "primal” cuts. Plaintiffs secretary, Mr. Walter Fox, thereupon advised the contracting officer that plaintiff could not perform the contract because it had misinterpreted the specifications. Mr. Fox testified that plaintiff was confused over the requirement for "primal cuts” and did not know what kind of meat cuts was meant by those words. However, it is clear from the record that primal cuts of meat are those which were specified by paragraph 3.2.1 of the specifications, i.e., triangles, rounds, loins, ribs and square chucks, and which cuts have not lost their identity by further cutting into secondary and smaller cuts and trimmings. On this point, the specifications are clear and unambiguous since paragraph 4.3.1.1 in which the words "primal cuts” appear specifically refers to paragraph 3.2.1. Testimony further revealed that the term "primal cut” is a term commonly used and understood in the meat industry. In any event, after discussions with Government representatives and prior to the default termination, plaintiff fully understood the meat requirements for the contract.

Upon hearing of the above difficulties, Mr. S. J. Camilari, the contracting officer, requested that Mr. Fox meet with him to discuss the situation. Mr. Camilari suggested that plaintiff submit a waiver request, which he would forward to his technical advisers to see whether the meat plaintiff [422]*422had procured could be used on the contract. A waiver request, however, was never submitted apparently because plaintiff was convinced that such a request would be turned down by the Government’s technical advisers. The record indicates that while the contracting officer would have relied heavily on the recommendation of his technical advisers on any waiver request, he did not feel bound by their recommendation and because of the "no supply” position of the Government on the product, he would have gone to the ultimate consumer activity to see if nonconforming supplies would be acceptable to it. If that activity was agreeable, the contracting officer would probably have granted the waiver. The Board also found that plaintiff was not told by the contracting officer, as alleged, that a waiver request would be denied.

On May 12, 1975, the president of plaintiff (Mr. Albert Darpino) and Mr. Fox met with the contracting officer and other Government representatives in Philadelphia. During the course of the meeting, Mr. Fox explained that plaintiffs production manager and quality control personnel had misinterpreted the specifications at the time of bid submission. Mr. Fox further stated that to reorder the meat, and some of the other ingredients (which also did not meet the specifications) in a rising cost market, would entail prohibitive additional costs. When the contracting officer stated that he had no other choice than to terminate the contract for default, Messrs. Fox and Darpino voiced agreement to such action. The contract was thereafter terminated for default on June 12,1975.

Shortly thereafter, bids were solicited on the repurchase contract. Plaintiff was one of 30 contractors that were solicited for the reprocurement, and was one of five contractors that bid on the repurchase contract. Bids were opened on July 2,1975. Plaintiffs bid appeared to be low on both east and west coast delivery points, although it was higher than the terminated contract price.

On July 8, 1975, the contracting officer contacted and received advice from his Government legal adviser to the effect that plaintiffs bid could not be considered unless it voluntarily lowered its bid to the unit prices contained in the defaulted contract. This advice was based on the legal [423]*423theory that a defaulted contractor may properly compete on reprocurement and an award to such contractor-bidder is proper if its bid is otherwise low and not in excess of its defaulted price. See In re R. H. Pines Corp., 54 Comp. Gen. 853 (1975) (decision B-182323).

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639 F.2d 690, 28 Cont. Cas. Fed. 80,851, 225 Ct. Cl. 418, 1980 U.S. Ct. Cl. LEXIS 372, Counsel Stack Legal Research, https://law.counselstack.com/opinion/venice-maid-co-v-united-states-cc-1980.