ASBCA 57329
Board: ASBCA
Agency: Army Lodging Fund
Appellant: Swinerton Builders Northwest
Date: 2017-04-24
Outcome: remanded
ARMED SERVICES BOARD OF CONTRACT APPEALS
Appeal of-- )
)
Swinerton Builders Northwest ) . ASBCA No. 57329
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Under Contract No. NAF26-04-C-0025 )
APPEARANCES FOR THE APPELLANT: Durward E. Timmons, Esq.
Milton L. Smith, Esq.
Ryan J. Klein, Esq.
Sherman & Howard L.L.C.
Colorado Springs, CO
Arnold R. Hedeen, Esq.
Hedeen & Caditz, PLLC
Seattle, WA
APPEARANCES FOR THE ARMY LODGING FUND:
Raymond M. Saunders, Esq.
Army Chief Trial Attorney
LTC Lawrence P. Gilbert, JA
Robert T. Wu, Esq.
MAJ John C. Dohn II, JA
Erica S. Beardsley, Esq.
Trial Attorneys 1
OPINION BY ADMINISTRATIVE JUDGE DICKINSON
This appeal arises from a contract awarded by CFSC 2 on behalf of respondent
Army Lodging Fund (AL, ALF or Fund), a Nonappropriated Fund Instrumentality
(NAFI), to Swinerton Builders Northwest (appellant or SBN) to build a 185-room
1
Mr. Wu and MAJ Dohn represented the Fund at the hearing and Ms. Beardsley
represented the Fund at the time the briefs were filed.
2 The U.S. Army Family and Morale, Welfare and Recreation Command, known at all
times relevant to the matters before us as the U.S. Army Community and
Family Support Center (CFSC), is a field operating activity of the U.S. Army
and the organization responsible for contracting on behalf of the Army Lodging
Fund (answer~~ 2, 3).
lodging facility at Fort Lewis, Washington. 3 Only entitlement is before us for
decision. 4
JURISDICTION
It is undisputed that CFSC has never issued a contracting officer's final
decision addressing SBN's 2005 and 2008 Requests for Equitable Adjustment (REAs)
or SBN' s 3 June 2010 certified claim. It is further undisputed that SBN appealed to
the Board from a deemed denial on 18 August 2010.
Under the Disputes clause of the NAF contract at issue, the Board has
jurisdiction over an appeal from the denial of a claim arising under the contract
(finding 25). The contract's Disputes clause, however, does not contain a provision
for an appeal from a deemed denial of a contractor's claim. Under certain
circumstances we have taken jurisdiction in the absence of a final decision under a
NAF contract.
It is well established that the purpose of the Disputes
clause is to provide the parties with a rapid and
inexpensive means of resolving disputes between the
parties. Mite Corporation, ASBCA No. 18534, 73-2 BCA
,10,312.
Prior to the CDA's enactment and under contracts
where the CDA does not apply, we have taken jurisdiction
over disputes that have existed for lengthy periods without
a final decision. See Mite Corp., supra; Atlantis
Construction Corp., ASBCA No[s]. 44044, 44860, 96-1
BCA, 28,045. As the Board explained in Mite Corp.,
supra, at 48,687, failure or r~fusal by the CO to issue a
final decision within a reasonable time constitutes a final
decision [denying the appeal and] giving jurisdiction to the
Board.
Charitable Bingo Associates, Inc., d/b/a Mr. Bingo, ASBCA No. 53249, 01-2 BCA, 31,478.
The situation before us is even more compelling than the one the Board
addressed in Charitable Bingo. From the 3 June 2010 submission of SBN's claim to
the September 2012 hearing, not only did CFSC not issue a contracting officer's final
3 Fort Lewis and McChord AFB were combined and became Joint Base Lewis-McChord as
of 1 October 2010. http://www.military.com/base-guide/joint-base-lewis-mcchord.
4 The number of days of any delay are considered to be part of entitlement (tr. 119).
2
decision, but the contracting officer never formally acknowledged receipt of SBN's
6,800-page claim, nor did he ever meaningfully respond to the many pleas from SBN
and its counsel in letters and phone calls seeking a response to the claim.