CBCA 4078

DENIED: July 24, 2017 CBCA 4078 AFFILIATED WESTERN, INC., Appellant, v. DEPARTMENT OF VETERANS AFFAIRS, Respondent. Paul H. Sanderford of Sanderford & Carroll, P.C., Temple, TX, counsel for Appellant. Mary A. Mitchell, Office of General Counsel, Department of Veterans Affairs, Houston, TX, counsel for Respondent. Before Board Judges SOMERS, HYATT, and GOODMAN. SOMERS, Board Judge. Affiliated Western, Inc. (AWI or appellant) appeals the final decision by a contracting officer for the Department of Veterans Affairs (VA, respondent , or Government) terminating for default AWI’s contract for the renovation of the surgical unit at the Oscar G. Johnson VA Medical Center in Iron Mountain, Michigan. AWI seeks conversion of the termination for default to a termination for convenience. For the reasons explained below, we sustain the VA’s termination for default and deny the appeal. CBCA 4078 2 Background I. The Solicitation On March 27, 2013, the Government issued a solicitation for the renovation of a 19,400 square foot surgery unit and 705 square foot mechanical room at the Oscar G. Johnson VA Medical Center in Iron Mountain, Michigan. On April 10, 2013, the VA conducted a pre-bid site visit of the medical facility for interested bidders. The parties disagree on whether AWI attended this site visit. On April 23, 2013, the Government amended the solicitation through amendment A00006 (amendment) and warned prospective bidders that the schedule for the project “is very aggressive” and involves “a very important department to the facility.” The amendment provided a phasing plan, requiring that the contractor complete the project in 400 days. Due to the impact on the medical center, the amendment emphasized the importance of maintaining the projected contract schedule. The amendment allotted each phase of the project the following durations: Mobilization/Submittals – 12 weeks Phase 1 – 14 weeks Phase 2 – 2 weeks Owner moving between phases 2 & 3 – 2 weeks Phase 3 – 18 weeks Owner moving between phases 3 & 4 – 2 weeks Phase 4 – 4 weeks Phases 0 and 5 work ongoing throughout project duration Further, the amendment required that “[a]ny changes to this schedule shall be approved through the contracting office and justified through the approved CPM [critical path method] project schedule.” Phase 1 required vacating the dental suite and relocating the ambulatory surgery wing to provide space for the contractor during the duration of the project. Phase 2 involved rerouting a corridor to allow for use of the vacated areas in phase 1 after the contractor finished phases 1 and 2. Phase 3, the most significant part of the project, involved the renovation of the operating rooms and the removal of the hospital roof to facilitate the installation of medical equipment. Phase 4 required the contractor to convert the phase 1 areas back into an ambulatory surgery wing. Phase 5 involved finishing the corridor and elevator lobby. Lastly, phase 0 involved site work to the mechanical room. The solicitation CBCA 4078 3 called for phases 1 through 4 to be completed sequentially. Phases 0 and 5 could be performed throughout the duration of the project. II.