61524

General Dynamics - National Steel and Shipbuilding Company

March 25, 2019Judge Sweet
OtherContract InterpretationEquitable Adjustment (REA)

General Dynamics - National Steel and Shipbuilding Company appealed a dispute concerning whether labor and material reservations in a fixed-price ship-repair contract covered defined work or growth work. The Board denied both parties' motions for summary judgment because the disputed clauses were ambiguous and extrinsic evidence raised genuine issues of material fact.

Material Facts

  • The United States Naval Sea Systems Command awarded Contract No. N00024-17-C-4426 to NASSCO for repairs and alterations during the drydocking phased maintenance availability of USS Makin Island.
  • The contract was generally fixed-price and required NASSCO to perform defined work items.
  • The contract also provided for reservations of labor and material at fixed rates for growth work that the government might assign in addition to the defined work.
  • Work Items 21 through 26 addressed ship service diesel generators Numbers 1 through 6, D level, respectively.
  • The disputed reservation clauses required 60 mandays of labor and 16,000 dollars of material to accomplish the applicable work item, as designated by the supervisor.
  • The undisputed reservation clauses required 100 man days of labor and 50,000 dollars of material to accomplish additional work not already covered by the work item.
  • NASSCO sought an equitable adjustment for work on Work Items 21 through 23 and 26 requiring more than the specified labor mandays or material costs.
  • NASSCO identified a price workbook and contemporaneous government statements as extrinsic evidence concerning the meaning of the disputed reservation clauses.

Parties

Appellant
General Dynamics - National Steel and Shipbuilding Company
Contracting Agency
United States Naval Sea Systems Command
Contract Number
N00024-17-C-4426
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