ASBCA 56769
Board: ASBCA
Agency: U.S. Army Corps of Engineers
Appellant: Zafer Construction Company
Date: 2017-06-02
Outcome: denied
ARMED SERVICES BOARD OF CONTRACT APPEALS
Appeal of -- )
)
Zafer Construction Company ) ASBCA No. 56769
)
Under Contract No. W9 l 7PM-05-C-0005 )
APPEARANCES FOR THE APPELLANT: Sam Zalman Gdanski, Esq.
Gdanski & Gdanski, LLP
Teaneck, NJ
Rebia Unal, Esq.
General Counsel
APPEARANCES FOR THE GOVERNMENT: Thomas H. Gourlay, Jr., Esq.
Engineer Chief Trial Attorney
James D. Stephens, Esq.
Michael A. Rea, Esq.
James A. Wallace, Esq.
Engineer Trial Attorneys
U.S. Army Engineer District, Middle East
Winchester, VA
OPINION BY ADMINISTRATIVE JUDGE PAGE
This appeal arises from Contract No. W917PM-05-C-0005 (the contract) between
appellant, Construction Company' (Zafer or appellant), and the Afghanistan Engineering
District (AED) of the U.S. Army Corps of Engineers (Corps or government) for design,
renovation, replacement, and repair work on a military hospital campus operated by the
Afghanistan National Army (ANA) in Kabul, Afghanistan. After fully performing the work,
Zafer now seeks an additional $4, 104,891 (including claim preparation costs) for renovation
work in basements, rooftop technical rooms, and other above-grade areas that it contends
were not included in its original proposal. Appellant alleges that the omission of this alleged
additional work from its proposal constituted a unilateral mistake in its proposal and that the
government's acceptance of the proposal was unconscionable. Appellant also suggests in its
trial briefthat the various subgrade and above-grade areas constitute differing site
conditions. The appeal is denied.
1
This is the name of the contractor as used in the contract and numerous contract
modifications (see, e.g., R4, tabs 5-15). We understand that "Zafer Taahhut
Insaat ve Ticaret A.S.," as used by the parties, is the Turkish version of the
contractor's name.
FINDINGS OF FACT
A. The Afghanistan National Military Hospital in Kabul, AFG
1. The Afghanistan National Military Hospital in Kabul, Afghanistan (ANA
hospital) is a campus consisting of multiple buildings designed and constructed by the
Soviet Union from 1970-1973. The buildings of the ANA hospital campus include a
400-bed patient-care facility, operations and administration buildings, a rehabilitation
building, an isolation ward, a polytechnic clinic, a morgue, a kitchen/dining facility, a
laundry facility, a water supply facility, a sewage plant, a central heating plant, and
quarters for the surgeon general. The ANA hospital has been in continuous use from
the time of its construction and, over the course of the ensuing decades, its buildings
succumbed to the ravages of armed conflict and the decay of neglect. By March 2004,
the buildings on the ANA hospital campus had fallen into varying stages of disrepair,
ranging from poor to fair. The condition of the major utilities infrastructure ranged
from non-functional to fair: steam heat boilers and the central heat distribution system
functioned at reduced capacity; electrical service was deficient; water and sewage
services were deficient; and many of the elevators on the campus were non-functional.
(Ex. A-7, 1August2012 Dep. of David M. Pecharka (hereinafter ex. A-7) at 91of131)
2. In March 2004, the government dispatched an assessment team comprised
of architects, engineers, and a cost estimator, all of whom were contractors employed
by Michael Baker Jr., Inc. (Baker), to the ANA hospital to survey the site and assess
the condition of the buildings and infrastructure. The Baker team was to prepare a
report that would allow the government to adequately budget for and define the work
necessary to renovate and rehabilitate the ANA hospital. (Tr. 2/30-31, 34-35, 4/129)
The scope of the team's assessment included the following areas and trades: water,
sewer, electrical, heating, mechanical, and architectural (ex. A-7 at 91of131).
According to Mr. Pecharka, an architect (tr.