CBCA 7508

THIS OPINION WAS INITIALLY ISSUED UNDER PROTECTIVE ORDER AND IS BEING PUBLICLY RELEASED IN ITS ENTIRETY ON APRIL 16, 2024 DENIED: March 21, 2024 CBCA 7508 FRAMACO INTERNATIONAL, INC., Appellant, v. DEPARTMENT OF STATE, Respondent. Douglas L. Patin and Erik M. Coon of Bradley Arant Boult Cummings LLP, Washington, DC; and Sam Z. Gdanski and Abraham S. Gdanski of Gdanski Law PC, Teaneck, NJ, counsel for Appellant. Thomas D. Dinackus, Matthew S. Tilghman, and Alexandra N. Wilson, Office of the Legal Adviser, Buildings and Acquisitions, Department of State, Washington, DC, counsel for Respondent. Before Board Judges BEARDSLEY (Chair), RUSSELL, and O’ROURKE. RUSSELL, Board Judge. Appellant, Framaco International, Inc. (Framaco), has filed 129 appeals with the Board (certain of which are consolidated) based on its contract with respondent, Department of State (State or agency), Bureau of Overseas Building Operations (OBO), to construct an embassy compound in Port Moresby, Papua New Guinea. CBCA 7508 2 This decision is being issued in accordance with the Board’s Order on Further Proceedings of October 23, 2023, largely adopting the parties’ proposal on resolving 108 of appellant’s non-consolidated appeals brought pursuant to Board Rule 53. See 48 CFR 6101.53 (governing accelerated procedures, which are available at an appellant’s election and are limited to appeals in which there is a monetary amount in dispute of $100,000 or less); see also 48 CFR 6101.1 (“The Board may alter [its] procedures on its own initiative or on request of a party to promote the just, informal, expeditious, and inexpensive resolution of a case.”). The Order states that “[t]he presiding judge with the two members of the panel . . . will decide the following appeals for which the parties will submit briefing: CBCA 7508, 7512, 7513, 7549, 7561, 7572, 7573, 7625, 7695, 7712, 7847, and 7859 (‘Selected Appeals’).” The Order additionally states, “Decisions rendered by the panel will be in summary form either in writing or orally, if a hearing is held; will be final and conclusive; will not be set aside, except for fraud; and will not be precedential.” As agreed to by the parties, quantum in the non-consolidated appeals to which the Board’s Order applies will be decided based on a formula using the damages amounts on which appellant prevails in the Selected Appeals. In a subsequent joint response docketed with the Board on March 19, 2024, the parties confirmed their agreement to abide by the Board’s Order on Further Proceedings of October 23, 2023, as it relates to 108 non-consolidated appeals brought by appellant. This appeal (CBCA 7508) results from State’s final denial of Framaco’s claim that requested $80,044 for work that consisted of removing receptacle faceplates that were labeled with adhesive stickers and replacing them with faceplates that were engraved. First, Framaco contends that its interpretation that the contract permitted the use of adhesive labels on receptacle nameplates was reasonable and supported by the respondent’s actions. Second, in the alternative, Framaco claims that the replacement of the receptacle faceplates constituted unnecessary economic waste. State, conversely, contends that the specifications were clear in requiring engraved labels and the adhesive labels were not adequate for the purpose of the contract. We deny the appeal. Background A. The Contract In July 2015, State awarded Framaco a firm-fixed-price contract, initially valued at $96,875,381, to construct the New Embassy Compound (NEC) in Port Moresby, Papua New Guinea. Appeal File, Exhibit 1 at DOS-PTMO-00982321.1 1 All exhibits are found in the appeal file of CBCA 7508, unless otherwise noted. CBCA 7508 3 The project was originally designed in 2010 as a “Standard Secure mini-Compound” (SSmC) with a scope that included a lock-and-leave new office building, a perimeter security wall and fence, a main compound entry pavilion (MCAP), and a service entry/utility building and support annex. Exhibit 2 at DOS-PTMO-00982414. Construction began in 2012, but due to Fort Moseby’s future marine detachment plans, the embassy staff requirement was increased in 2013. Id. As a result, State closed out the 2012 contract.