ASBCA 59998

ARMED SERVICES BOARD OF CONTRACT APPEALS Appeal of - ) ) URS Federal Support Services, Inc. ) ASBCA No. 59998-QUAN ) Under Contract No. FA8108-09-D-0006 ) APPEARANCES FOR THE APPELLANT: Thomas O. Mason, Esq. Francis E. Purcell, Jr., Esq. Thompson Hine LLP Washington, DC APPEARANCES FOR THE GOVERNMENT: Jeffrey P. Hildebrant, Esq. Deputy Chief Trial Attorney Colby L. Sullins, Esq. Trial Attorney OPINION BY ADMINISTRATIVE JUDGE CLARKE ON URS’ MOTION FOR ENTRY OF JUDGMENT In its motion URS Federal Support Services, Inc. (URS) asks the Board to enter judgment in its favor in the amount of $667,220.58 plus interest, as a result of the Board’s May 26, 2020 decision sustaining its appeal in part and returning it to the parties to negotiate the appropriate price for the change occasioned by Modification No. 03. URS Fed. Support Servs., ASBCA No. 59998, 21-1 BCA ¶ 37,848 at finding 45. We have jurisdiction pursuant to the Contract Disputes Act of 1978 (CDA), 41 U.S.C. §§ 7101- 7109. Because URS failed to produce its cost data and negotiate the actual costs of performance at Ft. Knox and Kingsville in accordance with the Board’s decision, its motion is granted but only in the amount of $141,297.53 as explained below. DISCUSSION The appeal involves an Air Force (AF) contract for aircraft maintenance services at various locations in the United States. The contract required the maintenance and also specified the number and skills of personnel required to perform the maintenance. During performance the AF moved a total of five aircraft mechanics (five full-time equivalents) (FTE) from Ft. Knox, KY and Kingsville, TX to Ft. Hood, TX. It is obvious this change increased costs at Ft. Hood and decreased costs at Ft. Knox and Kingsville. URS maintains it is entitled to $667,220.58 for the change at Ft. Hood. The AF concedes that URS is entitled to $663,249.08 for the change at Ft. Hood. However, the AF claims a cost savings at Ft Knox, KY, and Kingsville, TX of $523,937.30, which it offsets against the $663,249.08 for a total AF liability of $139,311.78. The AF calculated the savings / offset based on URS’ proposed prices in AF “pricing sheets” for mechanics because URS refused to disclose its actual costs of performance. In this quantum dispute URS argues it is entitled to the full $667,220.58 without offset. The Board’s Entitlement Decision In its May 26, 2020 Decision, the Board initially spent much of its time dealing with jurisdiction. Having resolved this issue in favor of jurisdiction, the Board decided: We agree with URS’ argument that the AF calculation of the deductive change amount is “flawed” because the AF did not use URS’ actual costs data. (App. Rule 11 reply br. at 18-19) URS is entitled to negotiate a fair and reasonable change, up or down, based on its actual costs at Ft. Knox and Kingsville. We also leave to the parties the matter of the slight difference between the parties’ price increase for Ft. Hood. In this regard we sustain the AF’s right to a modification for the reduction in FTE’s at Ft. Knox and Kingsville, but do not accept its calculation of quantum. URS’ appeal is sustained in part as it relates to staffing at Ft. Hood, otherwise, the remaining portion of the appeal regarding Ft. Knox and Kingsville is denied and the matter is returned to the parties to negotiate the appropriate price for the change occasioned by Modification No. 03 and in accordance with the above. URS Fed. Support Servs., ASBCA No. 59998, 21-1 BCA ¶ 37,848 at 183,784 1. Properly understood, the Board’s decision sustained the AF’s right to an offset based on savings at Ft. Knox and Kingsville, but gave URS an opportunity to reduce the offset of $523,937.30. We expected URS to produce its cost data in an attempt to prove, if it could 2, that its actual cost of performance was greater than the amounts shown in the pricing sheets thereby reducing the savings and offset.