ASBCA 60633
Board: ASBCA
Agency: Air Force
Appellant: Deas Construction, Inc.
Date: 2016-12-13
Outcome: denied
ARMED SERVICES BOARD OF CONTRACT APPEALS
Appeal of -- )
)
Deas Construction, Inc. ) ASBCA No. 60633
)
Under Contract No. FA4855-14-M-V003 )
APPEARANCES FOR THE APPELLANT: Mr. Douglas Reitmeyer
Vice President for Litigation
Mr. Kirk Deas
President
APPEARANCES FOR THE GOVERNMENT: Jeffrey P. Hildebrant, Esq.
Air Force Deputy Chief Trial Attorney
Heather M. Mandelkehr, Esq.
Anna F. Kurtz, Esq.
Trial Attorneys
OPINION BY ADMINISTRATIVE JUDGE NEWSOM
This appeal concerns the termination for convenience of a $42,000 commercial
services contract. Appellant contends that it fully performed the contract before the
termination and is entitled to full payment. The government contends that appellant
performed only a fraction of the scope of work and is only entitled to a fraction of the
contract price as a termination settlement.
Appellant elected to proceed under the Board's Accelerated procedure of Board
Rule 12.3. After a hearing, for the reasons explained below, we hold that appellant did
not fully perform the contract and that the government's determination of the amount of
appellant's termination settlement is reasonable.
FINDINGS OF FACT
1. This appeal concerns a contract to repair an Isochronal Inspection
Maintenance Stand (ISO Stand or Stand) and deliver a technical manual for the Stand
(R4, tab 7 at 4, tab 2 at 2).
2. An ISO Stand is an elevated platform that fits around and up against an
aircraft. The Stand allows maintenance personnel to access and walk 360 degrees
around the aircraft to perform repairs and maintenance. This enables personnel to work
more efficiently than if they had to climb up and down ladders to perform repairs or
maintenance. (Supp. R4, tabs 148, 152; tr. 11223-24, 2/48)
3. The particular ISO Stand at issue was designed and built by a company
called KWD Manufacturing, Inc. (KWD) (R4, tab 4; tr. 2/48, 54). The Stand had been
acquired sometime in the past, and by 2013 it was located at Cannon Air Force Base,
lying mostly disassembled in a state of disrepair. Cannon AFB maintenance personnel
did not have the technical expertise to repair it. (Tr. 11223-25)
4. In 2013, the Air Force contacted KWD and inquired how to make the Stand
functional (tr. 2/53). After examining the ISO Stand, in June 2014 KWD submitted an
unsolicited quote to repair the Stand for a price of $109,390.10 (R4, tab 51 at 1; supp.
R4, tab 56).
5. The parties dispute whether KWD also supplied the government with a list of
parts missing from the ISO Stand. KWD's president, John Deane, testified that he
provided with the quote a cost workup that included "a conglomerate of many items."
Questioned whether this included a list of parts missing from the Stand, he testified that
he did not supply "a per se cross down the line list" where "could you submit it and
have everybody quote in it- I did not." (Tr. 2/214-15) The contracting officer testified
that the Air Force did not have a list of missing parts (tr. 1/57). Based on this
testimony, we find that KWD provided a list of materials but not a missing parts list
that could be used by other offerors to generate a quote.
6. In 2014, the Air Force decided to hold a competitive procurement for award
of a commercial services contract to repair the ISO Stand (supp. R4, tab 73; tr. 1/38-39,
48-49, 224-28).
7. The Air Force issued a request for quotations on 18 September 2014 (R4,
tab 1). The solicitation contained a single contract line item number (CLIN) that
described the work as follows:
The contractor shall provide non-personal services, to
include all personnel, equipment, labor, supervision, and
other items and services necessary to repair an Isochronal
Inspection [ISO] Maintenance Stand Part No. 38-1-00-5,
and provide all required manuals and documents in
accordance with the Performance Work Statement (PWS)
dated: 16 September 2014.
The solicitation called for a single unit price for this CLIN. (R4, tab 1 at 2) The
solicitation also provided that the "stand must be tested and the end item repaired to a new
refurbished condition as identified in the Performance Work Statement (PWS)" (id.).
2
8.