ASBCA 58517
Board: ASBCA
Date: 2014-02-06
Outcome: dismissed
ARMED SERVICES BOARD OF CONTRACT APPEALS
Appeal of-- )
)
The R.R. Gregory Corporation ) ASBCA No. 58517
)
Under Contract No. DACA31-00-C-0037 )
APPEARANCE FOR THE APPELLANT: Brian Cohen, Esq.
Greenburg & Spence, L.L.C.
Gaithersburg, MD
APPEARANCES FOR THE GOVERNMENT: Thomas H. Gourlay, Jr., Esq.
Engineer Chief Trial Attorney
Richard P. White, Esq.
Engineer Trial Attorney
U.S. Army Engineer District, Baltimore
OPINION BY ADMINISTRATIVE JUDGE JAMES
ON THE GOVERNMENT'S MOTION TO DISMISS FOR LACK OF JURISDICTION
The government moves to dismiss this appeal for lack of jurisdiction asserting that
appellant's claim, submitted more than six years after the government withheld liquidated
damages, is barred by the Contract Disputes Act of 1978 (CDA), 41 U.S.C. §§ 7109-7109,
statutory limitation period. Appellant opposed the motion, arguing that its claim is timely
because it did not accrue until the expiration of the government's time to issue a decision
withholding liquidated damages and the government's withholding of liquidated damages,
without a final decision, was invalid. The government replied to appellant's opposition,
and appellant submitted a sur-reply. We grant the motion and dismiss the appeal.
STATEMENT OF FACTS (SOF) FOR PURPOSES OF THE MOTION
1. The U.S. Army Corps of Engineers (government) awarded Contract
No. DACA31-00-C-0037 (the contract) for $6,998,000 to The R.R. Gregory Corporation
(Gregory) on 30 September 2000 for construction of a new physical fitness center at
Walter Reed Army Medical Center in Washington, DC (R4, tabs 2, 3).
2. The contract incorporated by reference the FAR 52.233-1, DISPUTES
(DEC 1998) clause, which stated in relevant part:
(c) "Claim," as used in this clause, means a written
demand or written assertion by one of the contracting parties
seeking, as a matter of right, the payment of money in a sum
certain, the adjustment or interpretation of contract terms, or
other relief arising under or relating to this contract.. ..
A voucher, invoice, or other routine request for payment that is
not in dispute when submitted is not a claim under the Act.. ..
(d)( 1) ... A claim by the Government against the
Contractor shall be subject to a written decision by the
Contracting Officer.
and the FAR 52.211-12, LIQUIDATED DAMAGES-CONSTRUCTION (APR 1984) clause,
whose~ (a) stated:
If the Contractor fails to complete the work within the time
specified in the contract, or any extension, the Contractor
shall pay to the Government as liquidated damages [LDs ], the
sum of$1,015.00 for each day of delay.
(R4, tab 2 at 6 1, 21)
3. The contracting officer (CO) issued to Gregory a notice to proceed to perform
the contract on 13 November 2000, which Gregory received on 17 November 2000,
establishing an original contract completion date of 12 November 2001 (R4, tab 4;
compl. & answer~ 5).
4. Thirteen of the 34 contract modifications gave Gregory a total of 549 days of
time extensions. Bilateral Modification No. P00034 set the final contract completion date
of 15 May 2003. (R4, tabs 5-8, 10, 12-13, 15-16, 19, 28-29, 32)
5. Administrative CO (ACO) Jeffrey J. Werner's 12 November 2002 letter to
Gregory expressed disappointment with its "lack of progress towards completion" of the
contract and stated "that as of 1 December 2002, the Government will withhold from
your pay request liquidated damages in the contractually specified amount of
$1,015.00 per day" until Gregory demonstrated substantially improved progress (R4, tab
9).
6. The government's 27 January 2003 payment estimate for the period
1 November 2002 through 31 December 2002 withheld $31,465 for 31 days ofLDs (R4,
tab 14). Gregory's 18 February 2003 letter to ACO Werner acknowledged receipt of the
foregoing payment estimate and disputed the withheld LDs (app. supp. R4, tab 43).
1
Rule 4 page cites are to their Bates numbers.
2
7. The government's 21 May 2003 payment estimate No.