57779

Honeywell International, Inc.

August 7, 2013Judge Melnick
Partially SustainedContract InterpretationAuthority of Government AgentsStatutory ComplianceContract Formation / ExistenceCDA JurisdictionPayment / Progress Payments / Financing

Honeywell International, Inc. appealed a contracting officer's determination that provisions of a Fort Dix energy-savings delivery order concerning solar renewable energy certificates were voidable. The Board denied the jurisdictional dismissal motion, granted the government's partial-summary-judgment motion to the extent stated, and denied Honeywell's cross-motion, holding that the SREC-related terms were invalid and unauthorized.

Material Facts

  • The Department of Energy awarded Honeywell an indefinite-delivery/indefinite-quantity Super ESPC covering energy-conservation services and equipment in six Mid-Atlantic states, including New Jersey.
  • The Army awarded Honeywell Fort Dix Delivery Order W911 S 1-08-F-0131 under the Super ESPC for energy-conservation-measure services.
  • The delivery order included installation of a solar array and based guaranteed savings and scheduled payments in part on the value of SRECs.
  • The delivery order granted Honeywell transfer rights to manage the SREC transaction, including associated environmental benefits, for ten percent of achieved SREC value.
  • The contracting officers possessed unlimited contracting warrants but did not believe they had specific authorization to sell personal property.
  • Phase I work, including its solar array, was completed and accepted, and payments had been made toward it.
  • The Phase II solar array was supplied, completed on time, and installed as required, but the government did not connect it to the base electrical grid, test it, or accept it.
  • The contracting officer's final decision declared the solar-array provisions voidable because of a failure of consideration and asserted that the payment stream violated federal property-disposition and miscellaneous-receipt statutes.

Parties

Appellant
Honeywell International, Inc.
Respondent Agency
United States Air Force
Contracting Agency
Department of the Army
Contract Number
W911 S 1-08-F-0131
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