ASBCA 58352

ARMED SERVICES BOARD OF CONTRACT APPEALS Appeal of -- ) ) Automotive Management Services ) ASBCA No. 58352 ) Under Contract No. W52PIJ-l l-C-0014 ) APPEARANCE FOR THE APPELLANT: James W. Kim, Esq. McDermott Will & Emery LLP Washington, DC APPEARANCES FOR THE GOVERNMENT: Raymond M. Saunders, Esq. Army Chief Trial Attorney MAJ Nancy J. Lewis, JA Trial Attorney OPINION BY ADMINISTRATIVE JUDGE DELMAN ON CROSS-MOTIONS FOR SUMMARY JUDGMENT This appeal arises under a contract to Automotive Management Services (AMS or appellant) for the repair and maintenance of vehicles in Afghanistan. The parties have filed cross-motions for summary judgment, each contending it is entitled to judgment as a matter of law based upon its interpretation of the contract. According to appellant, it is entitled to reimbursement for the costs incurred to deliver Class IX spare parts from its central warehouse in Kabul to the contractually prescribed work sites in Afghanistan under contract line item number (CLIN) 0005AA, Spare Parts. According to the government, appellant is not entitled to separate reimbursement for these costs, since they are included in a firm fixed-price (FFP) effort under the provision for "supply chain management" in the Performance Work Statement (PWS) of the contract. We have jurisdiction under the Contract Disputes Act (CDA), 41 U.S.C. §§ 7101-7109. STATEMENT OF FACTS (SOF) FOR PURPOSES OF THE MOTIONS 1. On or about 26 November 2010, the U.S. Army Rock Island contracting center (Army or government) issued a draft solicitation for a project to provide, inter alia, maintenance and support to the vehicle fleet of the Ministry of Interior/Afghanistan National Police (MOI/ANP) at various maintenance locations in Afghanistan, through the Afghanistan Technical Equipment Maintenance Program (A-TEMP) (R4, tab 1). 1 1 The draft solicitation also included vehicle support for the Ministry of Defense/Afghanistan National Army (MOD/ANA). The contract before us was awarded to support the MOl/ANP only. 2. Insofar as pertinent, the draft PWS dated 26 February 2010 stated as follows: 3.25 OBJECTIVE-THREE (3). MOI/ANP FLEET MAINTENANCE. The contractor will be responsible for providing all the management, expertise, personnel, equipment, tools, vehicles, fuel, security, and life support to perform the requirement. The contractor shall provide equipment maintenance and supply chain management for the MOI/ANP fleet. ... The supported fleet density by equipment type is defined in ANNEX 2. Required level of maintenance and locations of sites are defined in ANNEX3. 3 .25 .1 Tasks associated include the following: 3.25.1.8 Manage a repair parts warehouse to include distribution of repair parts. 3.44 SUPPLY CHAIN MANAGEMENT. Contractor shall provide a commercially available supply chain management system.... The contractor shall manage a supply warehouse; operate class IX parts procurement and requisitioning program. The supply chain management program shall include a viable distribution program for repair parts to each maintenance site.... All costs of providing the warehouse facility as well as the management and personnel portion of this requirement shall be a firm-fixed price effort.... 3.46 PARTS PROCUREMENT. The contractor shall not add any costs, additional fees, mark ups, company derived inflation costs, or any other factor that changes the item's actual retail cost. For price comparison purposes, and if there is a dispute between the USG and contractor, the ACO shall determine if a source is appropriate. The requirement for premium freight costs for mission 2  essential equipment must be validated in advance by the COR. The contractor shall seek fair and reasonable prices .... The contractor shall consider freight and/or delivery fees when evaluating prices. When requesting quotes, the contractor should select suppliers who provide quality products at fair and reasonable prices and consistently deliver items on time. (Supp.