CBCA 5992
Board: CBCA
Agency: Department of Health and Human Services
Appellant: Duke University
Date: 2018-04-06
Outcome: dismissed
DISMISSED FOR LACK OF JURISDICTION:
April 6, 2018
CBCA 5992
DUKE UNIVERSITY,
Appellant,
v.
DEPARTMENT OF HEALTH AND HUMAN SERVICES,
Respondent.
Frederick Robinson of Norton Rose Fulbright US LLP, Washington, DC; and
Caroline M. Mew of Perkins Coie LLP, Washington, DC, counsel for Appellant.
Tami S. Hagberg, Office of the General Counsel, Department of Health and Human
Services, Washington, DC, counsel for Respondent.
Before Board Judges BEARDSLEY, ZISCHKAU, and LESTER.
LESTER, Board Judge.
Appellant, Duke University (Duke), filed an appeal of a contracting officerâs decision
on what Duke referred to as a ânon-monetary claimâ that it had submitted to the National
Institute of Allergy and Infectious Diseases (NIAID) within the Department of Health and
Human Servicesâ National Institutes of Health. Duke does not include in its claim a request
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for a monetary payment in a sum certain. In light of the Court of Appeals for the Federal
Circuitâs recent decision in Securiforce International America, LLC v. United States, 879
F.3d 1354 (Fed. Cir. 2018), which addressed tribunalsâ jurisdiction to entertain certain
disputes involving nonmonetary claims, the Board asked the parties to address the extent to
which the Board possesses jurisdiction to entertain Dukeâs claim. Subsequently, the parties
filed a joint motion to dismiss this appeal without prejudice to its merits, although without
expressly requesting that we dismiss the appeal for lack of jurisdiction. However, they ask
that, in dismissing without prejudice, we rule that the âreinstatementâ provisions of Board
Rule 12(d), 48 CFR 6101.12(d) (2017), do not apply so that, if Duke submits a monetary
claim to NIAID, Duke will retain the right to file suit in the Court of Federal Claims.
Duke has already incurred costs that it will not be reimbursed under NIAIDâs
interpretation of the contract, and it is clear that Dukeâs current claim is, in reality, a
monetary claim that does not identify a sum certain that Duke will seek to recover. We lack
jurisdiction to entertain Dukeâs appeal.
Background
On August 1, 2017, Duke submitted a letter to the NIAID contracting officer,
requesting a decision regarding a dispute arising under contract no. HHSN272201300017I
(the Vaccine and Treatment Evaluation Units (VTEU) contract) and three associated task
orders (nos. 8, 13, and 17) awarded in 2015 and 2016. In its letter, Duke challenged NIAIDâs
interpretation of some of the VTEU contract provisions and requested a contracting officerâs
decision on its interpretation question. NIAID had interpreted the contract provisions to
preclude Dukeâs full recovery of its facilities and administrative (F&A) costs, limiting
recovery of F&A costs on the subcontracted portions of work under the three subject task
orders. Duke neither included a request for money in its letter nor identified the amount of
previously unpaid costs to which it believed it was entitled, even though the information in
the record indicates that Duke had already incurred some F&A costs that were not being
reimbursed at that point in time. Instead of requesting money, Duke requested that the
NIAID contracting officer revisit her interpretation of the VTEU contract provisions and
Dukeâs entitlement to full F&A cost recovery.
The NIAID contracting officer issued a decision on October 11, 2017 (which Duke
received on October 18, 2017), in which she explained her interpretation of the VTEU
contract provisions and concluded âthat the F&A costs applied to the subcontracted portions
of the [statement of work] represent excessive pass-through charges per [Federal Acquisition
Regulation (FAR)] Clause 52.215-23 and are unallowable per FAR Section 31.203(i).â She
found âthat Duke has not demonstrated value added for the subcontracted work under Task
Orders 8, 13, and 17â sufficient to justify use of a different method of calculating an
CBCA 5992 3
appropriate F&A cost recovery, and she detailed the factual reasons that she believed
supported her finding.