CBCA 7213

GRANTED IN PART: July 22, 2024 CBCA 7213, 7393 ADAPT CONSULTING, LLC, Appellant, v. GENERAL SERVICES ADMINISTRATION, Respondent. Andrew Gillman, Denver, CO; and Nathan McKibben, Patrick B. Kernan, and Joseph A. Whitcomb of Whitcomb, Selinsky, P.C., Denver, CO, counsel for Appellant. Michael Converse and David C. Charin, Office of General Counsel, General Services Administration, Washington, DC, counsel for Respondent. Before Board Judges LESTER, ZISCHKAU, and SULLIVAN. ZISCHKAU, Board Judge. Appellant, Adapt Consulting, LLC, challenges a partial termination for default of its contract by respondent, the General Services Administration (GSA), and seeks $220,870.85 for claims arising under the contract and an unpaid contract balance. We conclude that GSA has failed to justify its termination for default, which is at issue in CBCA 7213, and that Adapt is entitled to recover $97,907.41 (which includes the remaining unpaid contract balance), plus applicable interest, under the affirmative monetary claims at issue in CBCA 7393. CBCA 7213, 7393 2 Background On February 4, 2020, GSA awarded Adapt a contract to modernize existing security systems at building 25 of the Denver Federal Center (DFC), occupied by GSA’s tenant, the Environmental Protection Agency (EPA). The modernization included updating the existing EPA physical access control system (PACS) to comply with current EPA security regulations. The PACS includes three broad components: access control, security cameras, and intrusion detection systems. Regarding the access controls, the updated PACS was to consist of card readers on interior and exterior doors, request to exit (REX) devices, on-site controllers, and associated equipment. Adapt’s work on the PACS was part of a wider renovation effort being undertaken at the EPA facility. Preceding and occurring simultaneously to Adapt’s project, building 25 was being renovated to consolidate multiple lab facilities and to implement a backup data center within the building space. The prime contractor for the building consolidation process was Swinerton Builders. Part of this process involved converting warehouse space into laboratory space, which required, among other things, the construction of new doors within the facility. For the new doors, Swinerton was responsible for constructing the door infrastructure, including running conduit and installing door hardware. Adapt’s contract specifications required it to procure all equipment and software necessary to provide the PACS solution for each door and to integrate the PACS with the EPA’s existing HQ enterprise C-Cure 9000 software system. The specifications required Adapt to install Cheetah SE card readers at approximately 110 locations in building 25 in accordance with the manufacturer’s specifications, the National Electrical Code, local codes, and commercial best practices. For most of the doors, Adapt replaced existing door readers. For the new doors installed as part of the renovation, Adapt installed new card readers. Adapt was required to maintain under warranty all system components of the PACS system for one year after project completion. Because the enterprise PACS was to be established as a client to the EPA HQ enterprise C-Cure 9000 system, Adapt was not required to acquire access control or visitor management software. Instead, the C-Cure system was “strictly managed and controlled by the Government” through EPA’s contracted PACS system administrator, M.C. Dean. Adapt, at GSA’s request, subcontracted with Johnson Controls, Inc. (JCI) to handle a large portion of the PACS installation. JCI’s affiliate company, Software House, is the manufacturer of the enterprise C-Cure software system into which EPA’s new PACS was to be integrated. On February 20, 2020, the parties conducted a kickoff meeting, and GSA issued the notice to proceed. Adapt’s supervisory team during contract performance consisted of Lisa CBCA 7213, 7393 3 Lowery, the program manager; Jennifer Howell, the project manager; and Tom Lowery, the superintendent and construction manager. Contract performance was originally scheduled to conclude on August 6, 2020, but GSA issued several modifications over the course of the contract, ultimately extending the contract performance period to October 22, 2020. As Adapt and its subcontractors neared the completion of its work, GSA and EPA conducted card reader testing on October 19 and 20, 2020.