ASBCA 61847
Board: ASBCA
Agency: Navy
Appellant: Sauer, Inc.
Date: 2021-09-29
Outcome: sustained in part
ARMED SERVICES BOARD OF CONTRACT APPEALS
Appeal of - )
)
Sauer, Inc. ) ASBCA No. 61847
)
Under Contract No. N40085-09-D-5026 )
APPEARANCE FOR THE APPELLANT: Jack Rephan, Esq.
Pender & Coward, P.C.
Virginia Beach, VA
APPEARANCES FOR THE GOVERNMENT: Craig D. Jensen, Esq.
Navy Chief Trial Attorney
Devin A. Wolak, Esq.
Trial Attorney
OPINION BY ADMINISTRATIVE JUDGE EYESTER
Sauer, Inc. (Sauer or appellant) appeals a deemed denial of a certified claim
concerning the construction of a multi-story barracks in Hampton Roads, Virginia,
pursuant to a task order issued by the Naval Facilities Engineering Command (NAVFAC
or government). Sauer submitted the claim on behalf of itself and its subcontractor for
money and time delay. The parties have agreed to waive a hearing and have the appeal
decided on the written record pursuant to Board Rule 11. Both parties have filed briefs in
support of their respective positions. 1 We have jurisdiction pursuant to the Contract
Disputes Act of 1978 (CDA), 41 U.S.C. §§ 7101-7109. For the reasons set forth below,
the appeal is sustained in part and the remainder is denied.2
1 Appellantâs prayer for relief in its opening brief contained a request for attorneyâs fees
under the Equal Access to Justice Act (EAJA) (app. br. at 44). However, a request
for attorneyâs fees under EAJA is inappropriate during the briefing stage of the
appeal, and would require a separate application pursuant to Addendum I of the
Boardâs rules after the disposition of the appeal has become final.
2 The parties jointly stipulated entitlement regarding two issues under this appeal. The
first issue, for work related to the Condenser Water Loop tie-in (Count IV), the
parties agreed that appellant should be awarded $23,000 for this portion of its
claim. The second issue, relating to Modification No. 004 (Mod. 004) for
Electrical Equipment Change (Count V(b) extended overhead), was also resolved
in favor of the appellant in the amount of $62,299.72. Thus, the parties requested
that the Boardâs final judgment include the previously agreed upon amounts.
(Joint status rpt. 1/29/2021 at 1) Accordingly, this decision deals with the
remaining issues under the above-captioned appeal.
FINDINGS OF FACT (FOF)
Background
1. On December 3, 2008, NAVFAC awarded Contract No. N40085-09-D-5026 to
Sauer. The contract was a Design Build/Design Bid Build Multiple Award Construction
Contract (MACC) 3 for New Construction, Renovations, Alterations, and Repair Projects
for Facilities in Hampton Roads, Virginia. (R4, tab 1 at 1294) 4
2. The MACC included the following clause:
5252.201-9300 CONTRACTING OFFICER AUTHORITY
(JUN 1994)
In no event shall any understanding or agreement between the
Contractor and any Government employee other than the
Contracting Officer on any contract, modification, change order,
letter or verbal direction to the Contractor be effective or binding
upon the Government. All such actions must be formalized by a
proper contractual document executed by an appointed
Contracting Officer. The Contractor is hereby put on notice that
in the event a Government employee other than the Contracting
Officer directs a change in the work to be performed, it is the
Contractorâs responsibility to make inquiry of the Contracting
Officer before making the deviation. Payments will not be made
without being authorized by an appointed Contracting Officer
with the legal authority to bind the Government.
(R4, tab 1 at 1312) The MACC also incorporated by reference Federal Acquisition
Regulation (FAR) 52.243-4, CHANGES (JUN 2007), and FAR 52.246-12,
INSPECTION OF CONSTRUCTION (AUG 1996) (R4, tab 1 at 1303).
3. On October 31, 2013, NAVFAC issued fixed-price Task Order No. 0005 to
Sauer in the amount of $27.406 million and with a completion date of December 16,
2015, for the design and build of a multi-story barracks for enlisted technical training
students at the Naval Air Station Oceana, Virginia Beach, Virginia 5 (R4, tab 1.5
at 1193-95, tab 1.6 at 1211-12, tab 1.1 at 1072).