CBCA 5616
Board: CBCA
Agency: Department of Veterans Affairs
Appellant: Stobil Enterprise
Date: 2017-03-02
Outcome: denied
PETITION DENIED: March 2, 2017
CBCA 5616
STOBIL ENTERPRISE,
Petitioner,
v.
DEPARTMENT OF VETERANS AFFAIRS,
Respondent.
Billie O. Stone, Chief Executive Officer of Stobil Enterprise, San Antonio, TX,
appearing for Appellant.
Mary A. Mitchell, District Contracting National Practice Group, Department of
Veterans Affairs, Houston, TX, counsel for Respondent.
Before Board Judges DANIELS (Chairman), ZISCHKAU, and RUSSELL.
RUSSELL, Board Judge.
Petitioner Stobil Enterprise (Stobil) requests that the Board direct the Department of
Veterans Affairs (VA) to issue a decision on Stobilâs contract claim on a date earlier than
that identified by the VA. For the reasons set forth below, we deny the request.
Background
In March 2016, Stobil filed an appeal (CBCA 5246) with the Board based on its
contracts with the VA to provide housekeeping and dietary services for an inpatient living
program at a VA facility. In that appeal, Stobil requested approximately $166,000 in relief
based on wage determination requirements under the Service Contract Act, 41 U.S.C. §§
CBCA 5616 2
6701-6707 (2012), losses for damaged goods and equipment, loss of contractor
opportunities, incurred administrative costs, interest, and the VAâs past performance
evaluation of Stobil. On August 19, 2016, the Board dismissed the appeal for lack of
jurisdiction because of Stobilâs failure to submit a certified claim to the VA consistent with
section 7103(b) of the Contract Disputes Act (CDA), 41 U.S.C. §§ 7101-7109 (2012), upon
which the contracting officer could issue a valid decision. Stobil Enterprise v. Department
of Veterans Affairs, CBCA 5246, 16-1 BCA ¶ 36,478, at 177,741, motion for
reconsideration denied, 17-1 BCA ¶ 36,610 (2016).1
Subsequently, by letter dated November 28, 2016, Stobil submitted a claim which it
deemed certified to the VAâs contracting office. The claim was based on the same contracts
and similar issues as those presented in CBCA 5246. In the November 2016 claim, Stobil
sought $321,288.20, plus approximately $2.3 million in interest. By letter dated January 27,
2017, the VAâs contracting officer notified Stobil that, pursuant to section 33.211(c)(2) of
the Federal Acquisition Regulation (48 CFR 33.211(c)(2) (2015)), the contracting officer
would issue his decision on Stobilâs claim by March 31, 2017. Stobil argues that this date
is unreasonable because the VA is already in possession of the relevant facts and evidence
of Stobilâs claim, and there are no additional matters affecting the complexity of the claim.
The VAâs position is that the identified date for issuance of the decision, March 31, 2017,
is not unreasonable in light of the significant increase in damages sought by Stobil absent
submission of any documentation to support the increase.
Discussion
Under the CDA, for claims over $100,000, a contracting officer must, within sixty
days of receipt of a certified claim, issue a decision on that claim or notify the contractor of
the time within which the decision will be issued. 41 U.S.C. § 7103(f)(3). The CDA
requires that a contracting officer issue a decision on a claim within a reasonable time,
âtaking into account such factors as the size and complexity of the claim and the adequacy
of information in support of the claim provided by the contractor.â 41 U.S.C. § 7103(f)(3);
see also 48 CFR 33.211(c)(2). â[I]n the event of undue delay on the part of the contracting
officer,â a contractor may request that the concerned tribunal, either the Board or the Court
1
Notwithstanding the lack of a certified claim, the contracting officer did issue
decisions on Stobilâs claim prior to Stobilâs appeal to the Board. However, as noted in the
Boardâs decision dismissing CBCA 5246, a contracting officerâs decision on an uncertified
claim cannot confer jurisdiction or cure the jurisdictional defect of an uncertified claim.
Stobil Enterprise, 16-1 BCA ¶ 36,478, at 177,740.
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of Federal Claims, âdirect [the] contracting officer to issue a decision in a specified period
of time, as determined by the tribunal.â 41 U.S.C. § 7103(f)(4).
Here, Stobil submitted its claim to the VA by letter dated November 28, 2016.
Consistent with 41 U.S.C.