ASBCA 60123
Board: ASBCA
Date: 2016-01-05
ARMED SERVICES BOARD OF CONTRACT APPEALS
Appeal of-- )
)
Strobe Data, Inc. ) ASBCA No. 60123
)
Under Contract No. FA8224-10-C-0028 )
APPEARANCES FOR THE APPELLANT: Kevin A. Rosenfield, Esq.
Mark G. Jackson, Esq.
Jackson Rosenfield LLP
Seattle, WA
APPEARANCES FOR THE GOVERNMENT: Col Matthew J. Mulbarger, USAF
Air Force Chief Trial Attorney
Alexis Bernstein, Esq.
Trial Attorney
OPINION BY ADMINISTRATIVE JUDGE DELMAN
The Board sua sponte raised the issue whether the monetary claim of Strobe
Data, Inc. (appellant) to the contracting officer (CO) was asserted in a "sum certain"
for purposes of our jurisdiction under the Contract Disputes Act (CDA), 41 U.S.C.
§§ 7101-7109. In a novel reversal of roles, appellant contends that its claim was not
asserted in a sum certain; that the Board is without jurisdiction; and that its appeal
should be dismissed without prejudice. The Department of the Air Force (AF or
government) opposes a dismissal without prejudice on jurisdictional grounds,
contending that appellant's claim was asserted in a sum certain and the Board should
retain jurisdiction. For reasons stated below, we conclude we do not have jurisdiction
over this appeal.
STATEMENT OF FACTS (SOF) FOR PURPOSES OF THE MOTION
1. On 5 January 2010, the government awarded the subject contract to
appellant to provide two Kestrel DXPs rack-mounted systems, plus system integration
and testing for a firm-fixed price of $98,238 (R4, tab 3). The government sought these
components as a possible replacement for an obsolescent computer in its F-16 test
stations, known as the "Avionics Intermediate Stations" or AIS.
2. It is undisputed that appellant timely shipped the units to the government;
that the government accepted the units; and paid appellant the full contract price (R4,
tab 6). 1 However, appellant was of the view that the AF improperly tested the units,
with the result that the units were ultimately disqualified by the government from
replacing the obsolescent computer in the F-16 test station (see claim letter below).
3. By letter dated 15 May 2015, appellant submitted a lengthy certified claim to
the CO reciting the background of the dispute; describing the nature of the improper
testing and other AF failures. Appellant asserted that the government's conduct was a
breach of its duty of good faith and fair dealing. (R4, tab 8)
4. Appellant's letter asserted a monetary claim for damages. Insofar as
pertinent, the letter stated as follows:
Performance of this improper test, as well as other acts
identified herein, constituted a breach of the Government's
duty of good faith and fair dealing, and caused Strobe to
incur an estimated $30,000,000 in damages .
.. .As a result, Strobe lost the opportunity to sell a
minimum of 200 Kestrel QXP systems, based on the
Government's own estimates (and likely more, given the
importance of the HPlOOO A900 to the AIS for the C-5A,
A-10, F-14, and the F-16). As each Kestrel had a profit
margin of$150,000, Strobe's lost profits from the F-16
market alone amount to $30,000,000. [Footnote omitted]
IV. CONCLUSION
...As such, Strobe's damages are, at a minimum,
$30,000,000. Should you need any further clarification or
documentation, please do not hesitate to contact me.
[Emphasis added]
(R4, tab 8 at 1, 7, 9)
1
Appellant alleges in its complaint that at the government's request, it agreed to
replace the 2 DXPs with 2 QXPs, appellant's fastest computer, at no additional
charge to the government (comp!. if 32). The government did not specifically
admit or deny this allegation in its answer. We need not make any findings on
this matter for purposes of this decision on jurisdiction.
2
5. By memorandum to appellant dated 13 July 2015, the CO denied appellant's
purported claim.