ASBCA 61197
Board: ASBCA
Agency: Army Corps of Engineers
Appellant: KiewitPhelps
Date: 2019-04-14
Outcome: sustained
ARMED SERVICES BOARD OF CONTRACT APPEALS
Appeal of-- )
)
KiewitPhelps ) ASBCA No. 61197
)
Under Contract No. W9128F-12-C-0023 )
APPEARANCES FOR THE APPELLANT: Vivian Katsantonis, Esq.
Christopher M. Harris, Esq.
Watt, Tieder, Hoffar & Fitzgerald, L.L.P.
McLean, VA
APPEARANCES FOR THE GOVERNMENT: Michael P. Goodman, Esq.
Engineer Chief Trial Attorney
Thomas J. Ingram, Esq.
Engineer Trial Attorney
U.S. Army Engineer District, Omaha
OPINION BY ADMINISTRATIVE JUDGE CLARKE
This appeal arises from the contract to construct a five-level, one millio.n square
foot facility to replace the U.S. Strategic Command (STRATCOM) complex at Offutt
Air Force Base (OAFB) near Omaha, Nebraska. Specifically, this appeal deals with a
dispute over wallboard (gypsum board) finishing requirements throughout the buildings.
We have jurisdiction pursuant to the Contract Disputes Act of 1978 (CDA), 41 U.S.C.
§§ 7101-7109. We sustain the appeal.
FINDINGS OF FACT
Finishing vs. Finishes
1. Mr. Douglass is an operations manager for Hensel Phelps, one of the joint
venture partners Kiewit and Hensel Phelps making up KiewitPhelps (KP). He had
overall responsibility for this project. (Tr. 1/51-53) Mr. Douglass explained that
drywall finishing is "used synonymously with the terminology of how you apply joint
tape and drywall compound to the drywall to prepare it for decoration." He
distinguished "drywall finishing" from "finishes" that are typically paint, wall
covering or anything that would architecturally treat the wall surface. (Tr. 1/63)
Mr. Douglass explained there are six levels of drywall finishing starting with zero
which is blank drywall, Level 1 which is "fire-taping" up to Level 5 which is the
highest level with the most applications of joint compound. Each successive level
builds on the previous level of joint taping and the application of joint compound.
There are seven levels of "finishes" for different kinds of paint, wall coverings,· wood
panels, etc. (Tr. 1/64-65, 69) This similar terminology for different products can
cause confusion as can be seen in the bidder inquiry discussed below.
Pre-Award Bidder Inquiry
2. Bidder Inquiry No. 4179969 was submitted on September 14, 2011, and read
"Spec section 09 29 00 identifies various drywall finish levels (Level 1-7). Please
identify where each finish level is to be applied." The government response was:
Provide Level 4 throughout facility unless noted
otherwise. Provide Level 5 at the following locations:
Primary Corridors (adjacent to: elevators, restrooms, break
areas, atrium, auditorium, directorate areas), Walls with
wood trim and/or panels, Walls and/or ceilings with direct
sunlight [o]n surface. Walls with applied solid surfaces.
These areas will be clarified in an upcoming amendment.
(Supp. R4, tab 3; app. supp. R4, tab 34 at 2-3) Mr. Hailey is an architect working for
architectural firm HOR on the STRATCOM replacement facility project since 2008
(tr. 2/204). Mr. Hailey wrote the government response to Bidder Inquiry No. 4179969
(tr. 2/222-24). Mr. Hailey explained that Levels 1-7 are paint levels not drywall finish
levels and the inquiry cited the wrong specification "should be 0990, not 0929"
(tr. 2/225-26, 271). His response told the bidders where to put the paint in terms of
drywall finish (tr. 2/271, 273-74).
3. In her final decision, contracting officer (CO) Young stated, "The contract
provisions dealing with drywall finishes, though atypical, are clear and unambiguous,
and generated no bidder inquiries" (R4, disc I, tab 1 at 11 ).
KP 's Drywall Subcontractor Bids & Trade Practice
4. KP's drywall subcontractor, Cleveland Construction, Inc. (CCI), did not bid
finishing to Level 4 above ceilings and below floors (tr. 1/223; app. supp. R4, tab 19
at 1). In addition to CCI, three other drywall subcontractors submitted bids to KP for
drywall work. Each bidder interpreted the drywall specifications the same as CCI that
Level 4/5 finish was required for exposed walls and fire-taping or Level 1 finishing
was required above ceilings (tr. 1/79-82). Allied Construction Services, Inc., wrote
"Exposed drywall finished to G.A. level 4" and "Rated drywall above the ceiling
finished to G.A.