CBCA 5084-R
Board: CBCA
Appellant: SecTek, Inc.
Date: 2016-08-03
Outcome: dismissed
RECONSIDERATION GRANTED; DISMISSED FOR LACK OF JURISDICTION:
August 3, 2016
CBCA 5084-R
SECTEK, INC.,
Appellant,
v.
NATIONAL ARCHIVES AND RECORDS ADMINISTRATION,
Respondent.
Daniel B. Abrahams and Aidan J. Delgado of Brown Rudnick LLP, Washington, DC,
counsel for Appellant.
Jennifer Klein and Stephani Abramson, Office of General Counsel, National Archives
and Records Administration, College Park, MD, counsel for Respondent.
Before Board Judges SHERIDAN, WALTERS, and CHADWICK.
CHADWICK, Board Judge.
SecTek, Inc. filed a timely motion for relief from our decision denying its appeal,
SecTek, Inc. v. National Archives & Records Administration, CBCA 5084, 16-1 BCA
¶ 36,403. SecTek argues for the first time, among other things, that we should have
dismissed its appeal for lack of jurisdiction. See Board Rule 27(a)(5) (48 CFR 6101.27(a)(5)
(2016)). We agree and accordingly grant reconsideration, rescind our merits decision, and
dismiss the appeal.
CBCA 5084-R 2
Background
Familiarity with our prior decision is assumed. In September 2015, SecTek submitted
a certified claim under the contractâs Disputes clause, seeking a price adjustment pursuant
to Federal Acquisition Regulation (FAR) clause 52.222-43(d), Fair Labor Standards Act and
Service Contract ActâPrice Adjustment (Multiple Year and Option Contracts) (48 CFR
52.222-43(d) (2014)), for increased labor costs under a collective bargaining agreement
(CBA) that SecTek signed with its unionized employees in June 2015. In November 2015,
the contracting officer issued a âdeterminationâ that the CBA would not be incorporated in
SecTekâs fixed-price contract as a wage determination pursuant to the Service Contract Act,
41 U.S.C. §§ 6701-6707 (2012). SecTek did not consider this response a decision on its
claim, and it filed this appeal under the Contract Disputes Act (CDA) from a deemed denial.
See 41 U.S.C. § 7103(f)(5). Although the contracting officer later issued a decision (or a
revised decision) on SecTekâs claim, neither party questioned our CDA jurisdiction. The
Board resolved the appeal on cross-motions for summary relief.
Discussion
SecTek now points out that FAR clause 52.222-41, Service Contract Labor Standards,
which was incorporated in the contract, stated that disputes about labor standards must be
resolved pursuant to Department of Labor (DOL) disputes procedures, ânot [under] the
Disputes clause,â 48 CFR 52.222-41(t), and that the Court of Appeals for the Federal Circuit
and at least one of our predecessor boards have held that disputes about applicable labor
standards and wage determinations lie within the exclusive jurisdiction of DOL.
See Emerald Maintenance, Inc. v. United States, 925 F.2d 1425, 1429 (Fed. Cir. 1991)
(â[T]he specific Disputes provision, stating that disputes arising out of labor standards are
not to be subject to the general disputes clause, but are to be resolved in accordance with the
procedures of [DOL], predominates over the general provision that the Board has jurisdiction
to decide any appeal from a contracting officer.â); Kass Management Services, Inc., GSBCA
8819, 88-3 BCA ¶ 20,891, at 105,619 (âQueries by appellant as to the correct wage
determination applicable to its contracts . . . must be addressed to the DoL.â).
SecTek posits that JL Associates, Inc. v. General Services Administration, GSBCA
11922, 93-3 BCA ¶ 25,939, in which the General Services Board of Contract Appeals
(GSBCA) granted the agencyâs motion to dismiss for lack of jurisdiction, is âremarkably
similarâ to this appeal. We substantially agree. JL Associates differed slightly from this
appeal, in that the issue there was when the CBA was executed, rather than, as here, what the
CBAâs terms were. The contracting officer received an unsigned CBA with typographical
errors before the start of the option year and a signed, âcorrectedâ copy during the option
period. Believing that the CBA did not exist before the option period, he did not incorporate
CBCA 5084-R 3
it in the contract or forward it to DOL to obtain a wage determination. See 48 CFR 22.1008-
1(d)(2)-(3) (contracting officer may either âprepare a wage determination referencingâ an
incumbent contractorâs CBA, or ârequest that [DOL] make the . . .