CBCA 5529
Board: CBCA
Agency: Department of Veterans Affairs
Appellant: BES Design/Build, LLC
Date: 2017-01-31
Outcome: dismissed
DISMISSED FOR LACK OF JURISDICTION: January 31, 2017
CBCA 5529
BES DESIGN/BUILD, LLC,
Appellant,
v.
DEPARTMENT OF VETERANS AFFAIRS,
Respondent.
Adam M. Milam of Milam & Milam, LLC, Daphne, AL, counsel for Appellant.
Mary A. Mitchell, Office of General Counsel, Department of Veterans Affairs,
Houston, TX, counsel for Respondent.
Before Board Judges SOMERS, SHERIDAN, and SULLIVAN.
SOMERS, Board Judge.
The Department of Veterans Affairs (VA) entered into a construction contract with
BES Design/Build, LLC (BES). The contract required BES to renovate a VA clinic in
Fayetteville, Arkansas. Pending before the Board is the VAâs motion to dismiss for lack of
jurisdiction. For the reasons set forth below, we grant the motion to dismiss.
Background
On August 25, 2016, BES submitted a claim for $168,847.06 to the contracting officer
and requested a âfinal decision.â By letter dated October 24, 2016, the contracting officer
advised BES that âthe Contracting Officer Final Decision will not be issued within the 60
days required by FAR Part 33.211(c)(2) but will be issued within the next 30 days.â
Subsequently, the contracting officer advised BES that she would need an additional ten days
CBCA 5529 2
to prepare her final decision. The contracting officer issued her final decision on December
3, 2016.
Meanwhile, on October 26, 2016, BES filed its appeal with the Board.
Discussion
The Contract Disputes Act (CDA), 41 U.S.C. §§ 7101-7109 (2012), grants boards of
contract appeals jurisdiction over actions brought on claims within ninety days following
receipt of a contracting officerâs final decision. For certified claims over $100,000, the
contracting officer has sixty days from receipt of the claim to either âissue a decisionâ or
ânotify the contractor of the time within which a decision will be issued.â 41 U.S.C.
§ 7103(f)(2); Agbayani Construction Corp. v. Department of Commerce, CBCA 5534, 17-1
BCA ¶ 36,582. The Federal Acquisition Regulation (FAR) reiterates this requirement,
adding that â[t]he contracting officer shall issue a decision within a reasonable time, taking
into account (1) the size and complexity of the claim; (2) the adequacy of the contractorâs
supporting data; and (3) any other relevant matters.â 48 CFR 33.211(c)(2), (d) (2015).
Finally, the FAR provides that â[i]n the event of undue delay by the contracting officer in
rendering a decision on a claim, the contractor may request the tribunal concerned to direct
the contracting officer to issue a decision within a specified time period determined by the
tribunal.â 48 CFR 33.211(f). A contractor is only authorized to file an appeal when the
contracting officer fails to issue a decision within the required time period, at which point
the failure to act is âdeemed a decision by the contracting officer denying the claim.â 41
U.S.C. § 7103(f)(5); 48 CFR 33.211(g).
As noted by the Court of Appeals for the Federal Circuit:
âA CDA action may be brought in the Court of Federal Claims or before a
board of contract appeals only if (i) the contracting officer has issued a final
decision on the contractorâs claim,â 41 U.S.C. § [7103(f)], Reflectone Inc. v.
Dalton, 60 F.3d 1572, 1573 (Fed. Cir. 1995), or (ii) the contracting officer has
failed to issue a final decision on the contractorâs claim or to notify the
contractor of the time within which a decision will be issued, and at least 60
days have passed since the date the claim was submitted for a decision, 41
U.S.C. [§§ 7103(f)(5), 7104(a), (b)]; Do-Well Mach. Shop, Inc. v. United
States, 870 F.2d 637, 640 (Fed. Cir. 1989).
Case, Inc. v. United States, 88 F.3d 1004, 1008-09 (Fed. Cir. 1996); also see Stobil
Enterprise v. Department of Veterans Affairs, CBCA 5246-R, slip op. at 3 (Nov. 16, 2016).
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âUntil there is a decision on [the contractorâs] claim, or the date for issuance passes,
[the contractor] cannot maintain an appeal with the Board or a suit at the Court of Federal
Claims on its claim.â Hawk Contracting Group, LLC v. Department of Veterans Affairs,
CBCA 5527, 16-1 BCA ¶ 36,572; see Sipco Services & Marine Inc. v. United States, 30 Fed.
Cl. 478, 484 (1994).