ASBCA 60977

ARMED SERVICES BOARD OF CONTRACT APPEALS Appeal of -- ) ) CKC Systems, Inc. ) ASBCA No. 60977 ) Under Contract No. SPRPA1-12-C-W059 ) APPEARANCE FOR THE APPELLANT: Ms. Jenny Cheng President APPEARANCES FOR THE GOVERNMENT: Daniel K. Poling, Esq. DLA Chief Trial Attorney Edward R. Murray, Esq. Trial Attorney DLA Aviation Richmond, VA SharifT. Dawson, Esq. Trial Attorney Defense Supply Center Philadelphia, PA OPINION BY ADMINISTRATIVE JUDGE OSTERHOUT This appeal arises from a contracting officer's (CO's) termination for default of a contract for storage containers for helicopter main rotor blades (blade boxes) between CKC Systems, Inc., (CKC or appellant) and the Defense Logistics Agency (DLA or government). CKC alleges that the government caused CKC's delay due to a change in the scope of the contract by requiring wooden skids in the container to have a stamp on them in a visible location when the container is used at a warehouse. CKC requests that the termination for default be converted to a termination for convenience because of this alleged excused delay. The government argues that the stamp markings were always required as part of the contract and that CKC failed to deliver on time. The parties have elected to waive a hearing and submit the case upon the record pursuant to Board Rule 11. We deny the appeal. FINDINGS OF FACT 1. On July 12, 2012, DLA issued contract number SPRPA1-12-C-W059 (the contract) to CKC to produce 38 shipping and storage containers for main rotor blades for the UH-1 and AH-lZ helicopters, under National Stock Number (NSN) 8145-01-563-8433 at contract line item number (CLIN) OOOlAA. The amount of the contract was $174,347.04. (R4, tab 1) 2. The contract contained a requirement for a first article test at CLIN OOOlAB, which was not separately priced (R4, tab 1 at 2). 3. The contract allowed for early and incremental deliveries (R4, tab 1 at 2). 4. The contract required delivery of the first article within 60 calendar days of the issuance of the contract (R4, tab 1 at 6). Thus, delivery of the first article was due on September 10, 2012. 5. The contract required delivery of 3 8 containers by February 5, 2014 (R4, tab 1 at 2). 6. The contract award document stated that the contract consisted of CKC' s proposal, solicitation number SPRPA1-12-R-W308 (the solicitation), and "this award/contract" (R4, tab 1 at 1, block 18). 7. The first sentence of the "Scope" section of the solicitation directed offerors, "Should a conflict arise between the drawings the contract contact code 0771.17 and the contracting officer for resolution." The "Scope'' section of the solicitation also stated, "Articles to be furnished hereunder shall be manufactured, tested and inspected in accordance with <Container Research Corporation> drawing number (<05259>) <775E001>, Revision <latest> and all details and specifications referenced therein." (R4, tab 11 at 5) 8. Paragraph 1. 7 of the solicitation stated, "[w ]hen discrepancies exist between these requirements and those on current manufacturer's drawings, these requirements shall prevail" (R4, tab 11 at 5). 9. Amendment No. 0001 of the solicitation, issued May 9, 2012, directed offerors to the applicable drawings, which included drawing 775E002 (R4, tab 12 at 1, 3). Drawing 775E002 referred to the wooden skids as items 17 and 18 (R4, tab 37 at 15). Note 1 on the overview drawing in 775E002 stated, "Items 17 & 18 to be manufactured, treated, and identified in compliance with ISPM No. 15" (R4, tab 37 at 8). 10. The solicitation included NAVSUPWSSDA07, PRESERVATION, PACKING AND MARKING (JAN 2012) (R4, tab 11 at 7). Paragraph 5 ofNAVSUPWSSDA07 included directions concerning wood packaging material. It directed offerors that the International Standards for Phytosanitary Measures (ISPM) 15 "Guidelines for Regulating Wood Packaging Material in International Trade" applied.