CBCA 7492
Board: CBCA
Agency: Department of Health and Human Services
Appellant: John Douglas Burke
Date: 2023-03-10
Outcome: denied
DENIED: March 10, 2023
CBCA 7492
JOHN DOUGLAS BURKE,
Appellant,
v.
DEPARTMENT OF HEALTH AND HUMAN SERVICES,
Respondent.
John Douglas Burke, pro se, Rockville, MD.
Pamela R. Waldron and Ethan Chae, Office of the General Counsel, Department of
Health and Human Services, Washington, DC, counsel for Respondent.
Before Board Judges BEARDSLEY (Chair), LESTER, and OâROURKE.
LESTER, Board Judge.
Appellant, John Douglas Burke, provided what were contractually described as
âprofessional servicesâ under a series of purchase orders with the National Institutes of
Health (NIH). After the last of those purchase orders expired, Mr. Burke submitted a
certified claim under the Contract Disputes Act (CDA), 41 U.S.C. §§ 7101â7109 (2018),
asserting that, while working under his purchase orders, he was effectively serving as a
federal civil service employee and that, rather than the hourly rates at which he was
compensated under his contracts, he was entitled to receive the salary and benefits of a
federal civil service employee. After the contracting officer denied his claim, Mr. Burke
appealed to the Board. NIH has filed a motion to dismiss Mr. Burkeâs appeal for failure to
state a claim on which relief can be granted, arguing that he was paid the full amounts to
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which he agreed in his purchase orders and is entitled to nothing more now that his service
under those agreements is complete.
Mr. Burkeâs arguments mirror those that the United States Court of Appeals for the
Federal Circuit considered and rejected in Lee v. United States, 895 F.3d 1363 (Fed. Cir.
2018). The essence of Mr. Burkeâs complaint is that his purchase orders were illegal
personal services contracts, in violation of Federal Acquisition Regulation (FAR) 37.104
(48 CFR 37.104 (2021)), and that, because of the illegality, he should effectively be treated
as a federal employee for the purposes of pay and benefits. Mr. Burke has informed us that,
in developing his claim and his arguments, he used the Lee decision as a framework for his
own case. He argues that, although the Lee plaintiffs were unsuccessful, the facts of his case
are more compelling than what the Federal Circuit considered in Lee and that he is entitled
to the relief that he seeks.
The Federal Circuitâs decision in Lee controls our resolution of this matter. Although
Mr. Burkeâs contracts contain somewhat different language and less precise terms than the
contracts that the Federal Circuit considered in Lee, and although there is some disagreement
between the parties as to the extent to which particular documents are incorporated into the
purchase orders, the Federal Circuitâs guidance in Lee precludes Mr. Burke from prevailing
on his claim here. Assuming the truth of his allegations about the terms of his contracts,
Mr. Burke has not presented a viable basis for invalidating or reforming his past purchase
orders. As a result, we grant NIHâs motion to dismiss this appeal for failure to state a claim
and deny Mr. Burkeâs appeal.
Factual Allegations
The facts identified below are based upon the allegations that Mr. Burke made in his
amended complaint, which mirror and add to the allegations contained in his certified claim
and notice of appeal; documents that the parties agree are part of the purchase orders
underlying this appeal; price quotes that Mr. Burke cites in his notice of appeal; and, for
informational purposes only, some limited additional evidence contained in the record.
Mr. Burkeâs First Purchase Order for Professional Services
Mr. Burke asserts that he originally began working for the Section on Human
Biochemical Genetics of NIHâs National Human Genome Research Institute (NHGRI) under
the series of purchase orders at issue here in approximately September 2014.1 The earliest
1
Mr. Burke indicates that, before September 2014, he worked for several years
as a contractor under similar contracts for a different laboratory of NHGRI.
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purchase order in the record, however, is dated July 20, 2015. That 2015 purchase order was
written on Optional Form 137 (rev. 02/12) (OF-137), âOrder for Supplies or Services,â which
is prescribed by FAR 53.213(f) (48 CFR 53.213(f) (2014)). That two-page OF-137 identified
Mr. Burke as the contractor and NHGRI as the administrative office for the order.