• Prime Interfered with and Hindered Subcontractor’s Performance
• Government Not Entitled to Summary Judgment in Fuel Use Dispute
• Reduction of Staff Justified Nonresponsibility Determination

• Renewable and Alternative Energy — $7 Billion
• Business and Force Support Services — $900 Million
• Medical Services — $387 Million
• Dam Modification Services — $256 Million
• Spare Parts — $165 Million
• Unmanned Aircraft Support — $110 Million

Prime Interfered with and Hindered Subcontractor’s Performance

A prime contractor was liable to a subcontractor for breach of contract, according to the District Court for the Eastern District of Pennsylvania, because the prime caused delays, increased the subcontractor’s costs, constructively modified the subcontract, and breached the duty of good faith and fair dealing. The dispute arose from a $29.8 million cost-reimbursable task order to replace a runway at an air base in Guam. The prime completed the project within the government’s $30 million budget by granting few price modifications or schedule extensions to the subcontractor that performed the work. The subcontractor, on the other hand, incurred a substantial cost overrun and alleged a total job cost of $47.7 million. (Nippo Corp./Int’l Bridge Corp., JV v. AMEC Earth & Environmental, Inc., DC ED Pa, 57 CCF ¶80,049)

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Government Not Entitled to Summary Judgment in Fuel Use Dispute

The government’s motion for summary judgment on its claim to recover excess fuel charges was denied by the Postal Board of Contract Appeals because there was a genuine issue of fact as to whether the contracting officer agreed to adjust the allocation, and the government did not demonstrate it was entitled to judgment as a matter of law. The contractor argued it sought a larger fuel allocation prior to agreeing to the contract, but the CO stated the allocation could be adjusted if the smaller amount proved inadequate. Thus, there was a genuine issue of material fact as to the nature of the pre-contract discussions and whether the contractor acquiesced to the smaller fuel allocation with an expectation the allocation would be adjusted if proven to be inadequate in practice. (Sammy’s Delivery Service, Inc., PSBCA, ¶93,717).

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Reduction of Staff Justified Nonresponsibility Determination

A protest of a nonresponsibility determination was denied because the contracting officer reasonably considered the protester’s ability to perform the contract and found the protester’s organization was inadequate. The protester’s staffing plan anticipated using existing workforce and hiring only 3 full-time equivalent employees, but when the CO made the selection decision, the protester had only 21 FTEs remaining. "This meant that [the protester] would have been required to hire, or otherwise obtain, almost the entire workforce necessary to perform the … contract." (Trailblazer Health Enterprises, LLC, 28 CGEN ¶114,051)

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Renewable and Alternative Energy — $7 Billion

Five contractors were awarded an indefinite-delivery/indefinite-quantity, firm-fixed-price, multiple-award, task-order contract with a maximum value of $7,000,000,000 for the procurement of energy from renewable and alternative energy production facilities that are designed, financed, constructed, operated and maintained by private sector entities on private land under the jurisdiction of the Department of Defense. The Army Corps of Engineers, Huntsville, Ala., is the contracting activity.

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Business and Force Support Services — $900 Million

Fifteen contractors are each being awarded an indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee, with provisions for fixed-price-incentive (firm target) and firm-fixed-price task orders, performance based contract. The contracts are for the procurement of business and force support services including the entire spectrum of non-inherently governmental services and solutions (equipment and services) associated with the full system lifecycle support. The cumulative, estimated value (ceiling) of the base year is $179,908,000. These contracts include options, which if exercised, would bring the cumulative value (ceiling) of these contracts to an estimated $899,543,000. Space and Naval Warfare Systems Center Atlantic, Charleston, S.C., is the contracting activity.

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Medical Services — $387 Million

Six contractors are each being awarded a 60-month, firm-fixed-priced, indefinite-delivery/indefinite-quantity, multiple award, task order contract for various medical services that include the labor categories of physicians, allied health, advanced practice nurses, nursing, technologists, technicians, and assistants. The aggregate not-to-exceed amount for these multiple award contracts combined is $387,038,480. The Naval Medical Logistics Command, Fort Detrick, Md., is the contracting activity.

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Dam Modification Services — $256 Million

Kiewit Infrastructure West Co., Fairfield, Calif., was awarded a firm-fixed-priced contract with a maximum value of $255,525,030 for dam modification services. The Army Corps of Engineers, Sacramento, Calif., is the contracting activity.

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Spare Parts — $165 Million

Honeywell International Inc., Tempe, Ariz., has been awarded a maximum $165,133,799 modification extending the three year base contract with three three-year option periods for an additional eighteen months for consumable and depot level reparable spare parts that support multiple weapons systems. The contracting activity is the Defense Logistics Agency Aviation, Richmond, Va.

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Unmanned Aircraft Support — $110 Million

General Atomics Aeronautical Systems Inc., Poway, Calif., was awarded a $110,261,703 modification to a previously awarded cost-plus-incentive-fee contract, for Gray Eagle Unmanned Aircraft Systems product support and fleet sustainment operations. The total cumulative face value of this contract is $354,683,431. The Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity.

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