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Anthony and Gordon Construction Co.
ASBCA No. 61916
| A.S.B.C.A. | Jul 1, 2021
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Background

  • Navy awarded Contract N69450-13-C-0754 to Anthony & Gordon (A&G) to renovate Building 49 (mechanical rooms 212 and 237) at NAS Corpus Christi.
  • The A/E and contractors could not access the mechanical rooms until hazardous hexavalent chromium remediation completed; after access, Blackstock (A&G’s mechanical subcontractor) discovered the Navy drawings mis-sized equipment and sited duct/floor openings impracticably.
  • A&G submitted RFIs, a request for equitable adjustment (Aug. 7, 2015), and a certified claim (Nov. 27, 2016; revised Jan. 20, 2017) alleging delays and increased costs caused by defective specifications; CO denied the REA/claim (Oct. 19, 2018).
  • A&G’s certified claim used the total-cost method and sought $3,990,263; technical reviewer and DCAA found entitlement as to design error but faulted A&G’s quantum proof and recordkeeping.
  • On appeal to the ASBCA A&G’s complaint recalculated damages using a daily general-conditions rate (totaling $2,834,205.65) and included amounts paid in later settlements with subcontractors; Navy moved to dismiss for lack of jurisdiction.
  • Board denied the government’s motion: operative facts (defective specs causing delay) were the same; changing the damage-calculation method or reducing claimed dollars via settlement did not create a new claim.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the appeal presents a “new claim” under the CDA because A&G used a different damages method on appeal A&G: same operative facts (defective specs → delay/added costs); only changed quantum method (daily rate vs total-cost), so CO had adequate notice Navy: switching from total-cost to daily rate materially alters the claim; CO did not rule on that measure of damages Denied — change in damages method is not a new claim when based on same operative facts; entitlement (liability) unchanged
Whether post-claim developments (settlement with Blackstock/Great American and reduced subcontractor figure) create a new claim depriving CO of opportunity to rule A&G: settlement merely reduced amount sought; post-claim damages or proof adjustments do not create a new claim Navy: settlements/new facts are significant and should have been presented to CO to permit analysis of liability and quantum Denied — reduction or adjustment in claimed amount based on later events does not change the essential nature or operative facts; such issues go to the merits, not jurisdiction

Key Cases Cited

  • K-Con Bldg. Sys., Inc. v. United States, 778 F.3d 1000 (Fed. Cir. 2015) (appeal scope limited to claims presented to contracting officer)
  • Lee’s Ford Dock, Inc. v. Sec’y of the Army, 865 F.3d 1361 (Fed. Cir. 2017) (new claim exists if appeal focuses on a different set of operative facts)
  • Scott Timber Co. v. United States, 333 F.3d 1358 (Fed. Cir. 2003) (test whether claim derives from same operative facts)
  • Placeway Constr. Corp. v. United States, 920 F.2d 903 (Fed. Cir. 1990) (single-claim principle: related evidence means same claim)
  • Servidone Constr. Corp. v. United States, 931 F.2d 860 (Fed. Cir. 1991) (total-cost method requirements for proving delay damages)
  • Tecom, Inc. v. United States, 732 F.2d 935 (Fed. Cir. 1984) (post-claim increases in damages based on new information need not be re-certified)
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Case Details

Case Name: Anthony and Gordon Construction Co.
Court Name: Armed Services Board of Contract Appeals
Date Published: Jul 1, 2021
Docket Number: ASBCA No. 61916
Court Abbreviation: A.S.B.C.A.