61093

Fluor Federal Solutions, LLC

August 19, 2019Judge Clarke
Sustained / Appellant PrevailedContract Interpretation

Fluor Federal Solutions, LLC challenged the Navy's interpretation of a performance-based contract as requiring 24/7 onsite manning at the Naval Station Mayport Water Treatment Plant. On cross-motions for summary judgment, the Board rejected the Navy's interpretation, granted Fluor summary judgment on entitlement, denied the Navy's motion, and returned quantum to the parties for negotiation.

Material Facts

  • The Navy awarded Contract No. N69450-12-D-7582 to Fluor for base operations support services at four Navy installations near Jacksonville, Florida, including Naval Station Mayport.
  • The contract was a performance-based contract and included Annex 1606000—Water for the Mayport water treatment plant.
  • The annex required operation of the plant to provide potable water 24 hours per day, seven days per week, and required sufficient staffing per shift to operate equipment safely and efficiently.
  • The contract's related information described operation as watch-standing or attendance-type work by sufficient qualified staff during a specified time period.
  • The Navy answered RFI No. 243 by stating that permits determine staffing and that permit requirements were provided by the Florida Department of Environmental Protection.
  • The Navy answered RFI No. 550 by referring bidders to CUP Permits Nos. 589 and 829 and stating that watch standing was the required attendance under the CUP permit.
  • The referenced Florida requirements for the Mayport plant specified staffing by a Class C or higher operator for six hours per day on five days per week and one visit on each weekend day.
  • Fluor's August 2014 operational log indicated that work was typically performed between 0630 and 1700 each day.
  • The Navy did not issue a formal written complaint about the lack of 24/7 manning until December 19, 2014, after approximately two and a half years of performance.
  • The Navy withheld payments, issued CPARs and a CDR, and issued Modification No. P00160 based in part on Fluor's failure to provide 24/7 manning.
  • Beginning September 1, 2015, Fluor increased staffing to provide 24/7 manning.
  • Fluor submitted a certified claim seeking return of deductions, additional manning costs, CPAR revisions, withdrawal of the 24/7 requirement, and an equitable adjustment.

Parties

Appellant
Fluor Federal Solutions, LLC
Respondent Agency
Navy
Contracting Agency
Navy
Contract Number
N69450-12-D-7582
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