Name Redacted
ASBCA No. 60597
| A.S.B.C.A. | Mar 3, 2017Background
- The Army awarded a construction contract (W91B4M-09-C-7088) for FOB Muqor, Afghanistan, which was terminated for convenience in October 2011.
- The contractor claimed it had purchased materials and incurred costs and attempted to submit a settlement proposal; communications with contracting officers occurred in 2012 seeking a settlement proposal.
- A document labeled "Settlement Proposal" (undated, unsigned, uncertified, lacking backup) listing $649,807 was produced to government counsel in 2016 but was not found in the government contract file.
- In November 2012 the contracting officer made a $123,200 counteroffer for labor and equipment which the contractor accepted by email; the government promised payment but failed to pay.
- The contractor filed an appeal with the Board on 25 May 2016 seeking $649,807 (docketed ASBCA No. 60597). The government moved to dismiss for lack of jurisdiction, arguing no certified claim or contracting officer final decision existed for amounts over $100,000.
- The Board found no certified claim in the record and dismissed ASBCA No. 60597 for lack of jurisdiction; a separate appeal (ASBCA No. 60915) remains based on the contracting officer’s November 3, 2016 final decision on the May 25, 2016 submission.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether appellant submitted a CDA claim sufficient to invoke Board jurisdiction | Appellant says it submitted a claim/BOQ in May 2011 and later submitted a settlement proposal and accepted the $123,200 offer | Government says no certified claim over $100,000 was submitted and no contracting officer final decision existed when appeal was filed | No jurisdiction: record contains no certified claim for amount > $100,000 and no final decision on such a claim |
| Whether a settlement proposal can ripen into a claim | Appellant implicitly contends its settlement proposal and follow-up communications constituted a claim | Government treats the documents as settlement negotiation, not a CDA claim | Settlement proposals may become claims, but here the record is incomplete and lacks certification for > $100,000, so ripening (if any) does not confer jurisdiction |
| Whether a later contracting officer final decision (Nov 3, 2016) cures jurisdictional defect for the May 25, 2016 appeal | Appellant relies on subsequent CO action | Government supplemented file and issued a final decision only after litigation began | The Board dismissed ASBCA No. 60597 for lack of jurisdiction; the November 3, 2016 decision gave rise to a separate appeal (ASBCA No. 60915) but did not revive the dismissed appeal |
| Whether the contractor’s informal email acceptance created an enforceable final agreement | Contractor asserts acceptance of $123,200 and that government promised payment | Government points to lack of payment and need for contracting officer final decision | Board did not award relief in this appeal due to jurisdictional defect; entitlement to $123,200 was recognized in the later CO decision (forming separate appeal) |
Key Cases Cited
- James M. Ellett Constr. Co. v. United States, 93 F.3d 1537 (Fed. Cir.) (settlement proposals ordinarily are not CDA claims but can ripen into claims under certain circumstances)
