General Dynamics - National Steel and Shipbuilding Company

Material Facts

• The contract was generally fixed-price and covered dry-docking phased maintenance availability repairs and alterations aboard the USS MAKIN ISLAND.
• The contract contained defined work items that enumerated tasks NASSCO was required to accomplish.
• The disputed reservation clauses required 60 mandays of labor and $16,000 of material to accomplish the applicable work item as designated by the supervisor.
• The undisputed reservation clauses required 100 mandays of labor and $50,000 of material for additional work not already covered by the applicable work item.
• NASSCO understood that subcontractors generally did not bid on reservation work, and five potential subcontractors bid for the disputed work-items work.
• NASSCO did not include subcontractor costs in its price proposal for the disputed work items.
• NASSCO's estimator and others explained to NASSCO's Vice President that the price discrepancy between disputed and undisputed work items resulted from the disputed reservation clauses capping the defined work.
• NASSCO informed the government during a July 10, 2017 meeting that it viewed the disputed reservation clauses as capping the defined work.
• SWRMC personnel later acknowledged ambiguity, but SWRMC was not delegated authority to modify contract terms and conditions.
• The NAVSEA procuring contracting officer directed NASSCO to perform all disputed defined work and stated that NASSCO could submit an equitable adjustment request.
• The NAVSEA procuring contracting officer rejected NASSCO's updated equitable adjustment request.
• NASSCO consciously proceeded under its interpretation instead of seeking clarification before award.

Parties

Appellant

General Dynamics - National Steel and Shipbuilding Company

Respondent Agency

United States Navy

Contracting Agency

United States Navy Sea Systems Command

Contract Number

N00024-17-C-4426