ASBCA 61422
Board: ASBCA
Agency: Defense Logistics Agency
Appellant: Precision Metals Corp.
Date: 2018-04-16
Outcome: dismissed
ARMED SERVICES BOARD OF CONTRACT APPEALS
Appeal of -- )
)
Precision Metals Corp. ) ASBCA No. 61422
)
Under Contract No. SPE7Ll-15-M-2140 )
APPEARANCE FOR THE APPELLANT: Mr. Tony Figlozzi
Vice President
APPEARANCES FOR THE GOVERNMENT: Daniel K. Poling, Esq.
DLA Chief Trial Attorney
Matthew 0. Geary, Esq.
Trial Attorney
DLA Land and Maritime
Columbus, OH
OPINION BY ADMINISTRATIVE JUDGE YOUNGER
ON THE GOVERNMENT'S MOTION TO DISMISS
DLA Land and Maritime Land Supply Chain (the government) moves to dismiss
this appeal, arguing that appellant, Precision Metals Corp. (Precision or appellant), failed
to submit a timely appeal as required by the Contract Disputes Act, 41 U.S.C. § 7104(a).
Appellant opposes the motion. We grant the government's motion and dismiss the appeal
for lack of jurisdiction.
STA TEMENT OF FACTS FOR PURPOSES OF THE MOTION
1. On 16 July 2015, the government awarded Contract No. SPE7Ll-15-M-2140 to
Precision for the purchase of "leg, machine gun bipod, left hand" parts. The total award
amount of the contract was $22,440.00. (Gov't mot., ex. 1)
2. The contract contained various standard clauses, including Federal Acquisition
Regulation (FAR) 52.209-3, FIRST ARTICLE APPROVAL - CONTRACTOR TESTING
(SEP 1989), which provided, in paragraph (b ), that the contractor "shall submit the first
article test report within 280 calendar days from the date of this contract," a date elsewhere
specified as 21 April 2016; FAR 52.233-1, DISPUTES (MAY 2014); and FAR 52.249-8,
DEFAULT(FIXED-PRICE SUPPLY AND SERVICE) (APR 1984) (R4, tab 1 at 11, 17, 20-21).
3. The contract was modified twice during performance, including once by
Modification No. POOOO 1, dated 12 May 2016, to extend the first article test delivery date
to 12 August 2016 (gov't mot., exs. 2-3).
4. By letter dated 13 March 2017, the government issued a show cause notice to
Precision, asserting that the first article test had not been delivered by the modified
delivery date (incorrectly stated to be 2 August 2016), and Precision had not requested a
new delivery date (gov't mot., ex. 4).
5. By letter dated 22 March 2017, Precision indicated that it would deliver the
materials by 10 May 2017 (gov't mot., ex. 5 at 2).
6. In a letter to Precision dated 3 April 2017, the contracting officer stated that he
would forbear from terminating the contract until IO May 2017, to allow delivery of the
first article test report (gov't mot., ex. 6 at 2). The contracting officer warned, however,
that if the first article test report were not delivered by that date, "the [contract] may be
terminated in accordance with the default clause" (id.).
7. By final decision dated 12 May 2017, the contracting officer terminated the
contract for default following Precision's failure to deliver the first article test report by
IO May 2017 (gov't mot., ex. 8 at 3-4). The final decision included an advice of rights (id.
at 4). The contracting officer emailed the final decision to Amy Pitarra, contracts
administrator at Precision, the same day, and included a read receipt. The read receipt stated
that the email was read by Ms. Pitarra on 12 May 2017 at 3:24 pm. (Gov't mot., exs. 8-9)
8. By email dated 15 May 2017, Precision requested reconsideration of the final
decision (gov't mot., ex. 10 at 1-2). We find no evidence of any subsequent
communication between the parties until Precision filed its notice of appeal.
9. Precision filed a notice of appeal with the Board by email dated 21 November
2017, and the Board thereafter docketed the appeal as ASBCA No. 61422.
DECISION
The government's core argument in its motion to dismiss is that the Board lacks
jurisdiction over this appeal because Precision did not file its notice of appeal within the
90-day statutory period from receipt of the termination notification (Respondent's Motion
to Dismiss (motion) at 2-3). For its part, Precision asserts that the government terminated
the contract despite the fact that the parts were ready for inspection (Bd. corr. ltrs. dtd.
12 December 2017, 22 January 2018).