CBCA 4826
Board: CBCA
Agency: Department of Veterans Affairs
Appellant: JR Services, LLC
Date: 2018-11-20
Outcome: granted
GRANTED IN PART: November 20, 2018
CBCA 4826, 5123, 5124, 5189, 5190
JR SERVICES, LLC,
Appellant,
v.
DEPARTMENT OF VETERANS AFFAIRS,
Respondent.
Lawrence M. Prosen and John T. Bergin of Kilpatrick Townsend & Stockton LLP,
Washington, DC, counsel for Appellant.
Jennifer L. Hedge, Office of Regional Counsel, Department of Veterans Affairs,
Pittsburgh, PA, counsel for Respondent.
Before Board Judges VERGILIO, SULLIVAN, and LESTER.
LESTER, Board Judge.
Between October 2009 and September 2011, the Department of Veterans Affairs (VA)
awarded the following four contracts to JR Services, LLC (JRS), for work at the Northport
VA Medical Center: contract nos. VA243-RA-0705 (for the replacement of windows in
Building 200), VA243-C-1248 (for construction of a rooftop recreation area), VA243-RA-
0925 (for renovation of supply processing distribution and pharmacy storage in Building
200), and VA243-RA-0943 (for renovation and construction work in Building 63A).
Between April 2015 and January 2016, the VA contracting officer terminated those four
contracts for default, and, on September 14, 2015, JRS submitted a certified claim pursuant
CBCA 4826, 5123, 5124, 5189, 5190 2
to the Contract Disputes Act, 41 U.S.C. § 7101-7109 (2012), seeking a monetary payment
for costs alleged to have been incurred in performing contract no. VA243-RA-0705 as a
result of VA-caused delays and redesign. JRS timely appealed the four default termination
decisions to the Board, which the Board docketed as CBCA 4826, 5124, 5189, and 5190, and
it appealed the contracting officerâs âdeemed denialâ of its monetary claim, which the Board
docketed as CBCA 5123. The Board subsequently consolidated the five appeals.
On November 16, 2018, the parties, in furtherance of a settlement agreement that they
executed on November 15, 2018, filed a joint motion for entry of judgment in these appeals.
In the settlement agreement, the VA agreed to convert the four default terminations to
terminations for convenience and to modify JRSâs final ratings in the Contractor
Performance Assessment Reporting System (CPARS). The parties, through the settlement
agreement, also stipulated to a monetary award in JRSâs favor in the amount of $750,000,
inclusive of all interest, with each party to bear its own costs, attorney fees, and expenses.
In their motion to the Board seeking entry of judgment, the parties stipulated that they will
not seek reconsideration of or relief from, and will not appeal, the Boardâs decision awarding
the stipulated amount. The agency intends that payment will come from the permanent
indefinite judgment fund pursuant to 31 U.S.C. § 1304.
Decision
At the partiesâ request, the appeals are GRANTED IN PART. The VA shall pay
$750,000, inclusive of interest, to JR Services, with each party to bear its own costs, attorney
fees, and expenses. This payment shall be made in accordance with 41 U.S.C. § 7108.
Harold D. Lester, Jr.
HAROLD D. LESTER, JR.
Board Judge
We concur:
Joseph A. Vergilio Marian E. Sullivan
JOSEPH A. VERGILIO MARIAN E. SULLIVAN
Board Judge Board Judge