CBCA 5397

DENIED: May 10, 2017 CBCA 5397, 5398 T. K. HUGHES AUTO SALES, INC., Appellant, v. GENERAL SERVICES ADMINISTRATION, Respondent. T. K. Hughes, President of T. K. Hughes Auto Sales, Inc., Richmond, VA, appearing for Appellant. Michael J. Noble, Office of General Counsel, General Services Administration, Washington, DC, counsel for Respondent. Before Board Judges SOMERS, RUSSELL, and O’ROURKE. SOMERS, Board Judge. On April 13, 2016, appellant, T.K. Hughes Auto Sales, Inc. (T.K. Hughes), bought from the General Services Administration (GSA) two vehicles at auction. Several months after consummating this transaction, T.K. Hughes claims that the vehicles contained rust on the undercarriage, and that it is entitled to a $1500 per vehicle reduction in the purchase price. A GSA contracting officer denied the claims, and T.K. Hughes appealed from those decisions. CBCA 5397, 5398 2 GSA moves for summary relief in each of these appeals. As we find no material facts in dispute, and that appellant is not entitled to relief as a matter of law, we grant GSA’s motions and deny the appeals. Background On April 13, 2016, appellant purchased two vehicles at a GSA auction. Among the auction’s terms and conditions of sale was the following provision, entitled “Limited Description Warranty”: Clause No. 2 of Standard Form (“SF”) 114C is deleted and replaced by this Limited Description Warranty. The Government warrants to the original purchaser that the property listed in the Invitation for Bids will conform to its description. Condition is not guaranteed. If a mis-description is determined before removal of the property, the Government will keep the property and refund any money paid. If a mis-description is determined after removal, the Government will refund any money paid if the purchaser takes the property at his or her own expenses to a location specified by the contracting officer. No refund will be made unless the purchaser submits a written notice, claiming a mis-description, to the contracting officer within 15 calendar days of the date specified for removal and maintains the property in the same condition as when removed. .... This warranty is in place of all other guarantees and warranties express or implied. The Government does not warrant the merchantability of the property or its fitness for any use or purpose. The amount of recovery under this provision is limited to the purchase price of the mis-described property. The purchaser is not entitled to any payment for loss of profit or any other money damages, special, direct, indirect or consequential. The auction also incorporated by reference the general sales terms and conditions of SF 114. Condition no. 1 of SF 114 (Inspection) states: The bidder is invited, urged, and cautioned to inspect the property prior to submitting a bid. Property will be available for inspection at the places and times specified in the invitation. CBCA 5397, 5398 3 On April 13, 2016, T.K. Hughes presented the winning bids for two vehicles, one at a price of $13,750 and the second for $13,250. Each bill of sale signed by T.K. Hughes stated, “I agree that I have examined the vehicle and accept the vehicle in its present condition.” Appellant asserts that after it purchased the vehicles, it discovered that both vehicles had rust on the undercarriage. On June 13, 2016, T.K. Hughes submitted written claims to the contracting officer in which it sought a $1500 per vehicle refund off the purchase price, alleging that GSA had failed to disclose the rust. GSA’s contracting officer denied the claims, stating that the vehicles were not mis- described. In addition, appellant failed to present its claims within fifteen calendar days following removal of the property on April 13, 2016, as required by the contract. On July 2, 2016, T.K. Hughes submitted its appeals to the Board. In its notices of appeal, appellant stated: I consider it an obligation of the GSA to announce rust on their vehicles offered for sale, as it is always done at other GSA sales.