ASBCA 60139
Board: ASBCA
Agency: DLA Aviation
Appellant: Military Aircraft Parts
Date: 2017-02-21
Outcome: dismissed
ARMED SERVICES BOARD OF CONTRACT APPEALS
Appeal of -- )
)
Military Aircraft Parts ) ASBCA No. 60139
)
Under Contract No. SPM4A7-12-M-4479 )
APPEARANCE FOR THE APPELLANT: Mr. Robert E. Marin
President
APPEARANCES FOR THE GOVERNMENT: Daniel K. Poling, Esq.
DLA Chief Trial Attorney
Edward R. Murray, Esq.
Jason D. Morgan, Esq.
Trial Attorneys
DLA Aviation
Richmond, VA
OPINION BY ADMINISTRATIVE JUDGE O'SULLIVAN ON THE
GOVERNMENT'S MOTION TO DISMISS FOR LACK OF JURISDICTION
This appeal arises out of the deemed denial of a claim for breach of contract
damages filed by appellant Military Aircraft Parts (MAP) in connection with three
purchase orders (hereinafter referred to as contracts 3228, 3284 and 4479). DLA
Aviation (DLA) moved to dismiss MAP's appeal, alleging that appellant's claim was
actually a challenge to DLA's default termination of the contracts that occurred more
than two years earlier.
The Board granted DLA's motion with respect to contracts 3228 and 3284.
See Military Aircraft Parts, ASBCA No. 60139, 16-1BCA.,-r36,390 at 177,425.
With respect to contract 44 79, we deferred our decision because, unlike the other two
contracts, contract 44 79 did not include a default clause. 1 We therefore requested
supplemental briefing from the parties on the question of whether the lack of a default
clause in contract 4479 rendered the contracting officer's final decision (COFD)
terminating it for default legally deficient such that it would not trigger the running of
the 90-day appeal period under the Contract Disputes Act (CDA), 41 U.S.C. § 7104(a)
(Bd. corr. order dtd. 2 June 2016).
1
Where the dollar value of a contract for supplies and services does not exceed the
simplified acquisition threshold, defined at FAR 2.101 as $150,000, the
decision concerning whether to use the default clause is discretionary with the
contracting officer. FAR49.504(a)(l). The dollar value of contract 4479 fell
far short of that threshold amount.
The parties have filed supplemental briefs as requested by the Board.
Familiarity with our prior decision on contracts 3228 and 3284 is presumed.
STATEMENT OF FACTS FOR PURPOSES OF THE MOTION
On 15 February 2012, DLA awarded MAP contract 4479 for aircraft structural
parts similar to those ordered under contracts 3228 and 3284, for a total price of
$16,225 (gov't mot., ex. I at 1). The relevant facts with respect to contract 4479 are
otherwise substantially the same as those discussed with respect to contracts 3228 and
3284 in our prior decision with one critical distinction. Contracts 3228 and 3284
incorporated by reference the default clause found at FAR 52.249-8. See Military
Aircraft Parts, 16-1BCA~36,390 at 177,421. In contrast, contract 4479 did not
(gov't supp. br., ex. 3).
Despite that omission, the 1April2013 COFD relating to contract 4479 advised
MAP that the contract was being terminated for default (gov't supp. br., ex. 4).
Although the COFD did not specifically reference the default clause (id.), the
unilateral contract modification dated 2 April 2013 effecting the termination did,
reading as follows:
YOU ARE HEREBY ADVISED THAT THE
CONTRACTING OFFICER, IN THE EXERCISE OF HIS
INDEPENDENT JUDGMENT, ASSERTS THAT YOU
ARE IN DEFAULT FOR FAILING TO PROVIDE A
FIRST ARTICLE SAMPLE THAT MEETS CONTRACT
REQUIREMENTS, BY NOT MAKING DELIVERY
UNDER THE CONTRACT, THAT NO EXCUSABLE
CAUSE FOR DELAY HAS BEEN ALLEGED, AND
THATTHECONTRACTISTERMINATEDFOR
DEFAULT EFFECTIVE 1 APR2013, PURSUANT TO
FEDERAL ACQUISITION CLAUSE 52.249-8,
ENTITLED 'DEFAULT', WHICH IS A PART OF THE
CONTRACT BY REFERENCE.
(Id., ex. 5 at 2) MAP did not challenge DLA's default termination of any of the three
contracts, including contract 4479, within the 90-day appeal period set forth in the
CDA, 41 U.S.C. § 7104(a) (gov't supp. br. at 3).
By letter dated 27 April 2015, MAP submitted to the contracting officer a
claim for breach of contract damages arising out of all three contracts, including
contract 44 79 (compI., ex. C).