61817

Metro Machine dba General Dynamics NASSCO-Norfolk

June 10, 2020Judge Clarke
Sustained / Appellant PrevailedContract Changes / Constructive ChangesContract InterpretationAuthority of Government AgentsQuantum / Damages

NASSCO sought compensation after the Navy Docking Observer cancelled an attempted dry-docking of USS TRUXTUN following two dry-dock cable failures, requiring a later successful docking. The Board sustained the appeal, holding that the contract allocated responsibility for the resulting cost impact to the Navy under the circumstances, and remanded for determination of quantum.

Material Facts

  • Contract No. N00024-16-D-4408 was an IDIQ contract for repair, maintenance, and modernization of non-nuclear U.S. Navy surface ships.
  • MARMC awarded NASSCO Delivery Order N5005417FC028, CLIN No. 0004, requiring NASSCO to provide labor, materials, facilities, supervision, and equipment for USS TRUXTUN's maintenance, modernization, repair, docking, and undocking.
  • The delivery order incorporated applicable Navy rules and regulations and restricted compliance with Government orders unless issued by the Contracting Officer or supported by specific contractual authority.
  • NASSCO's written emergency procedures addressed failure of the ship's hauling or centering system and provided procedures for continuing or aborting a docking evolution.
  • During the attempted October 9, 2017 docking, an inhaul cable parted when the ship was about one third into the dock.
  • After the inhaul cable failure, NASSCO continued hauling in manual mode with the remaining inhaul cable.
  • An outhaul cable later came off the reel and became fouled or bird caged.
  • NASSCO's Dockmaster recommended cutting the fouled cable and continuing, but the Navy Docking Observer recommended cancelling the evolution and the MARMC Commanding Officer concurred.
  • The cancellation occurred when the docking was approximately five hours behind schedule and the hauling system was operating in a degraded condition.
  • NASSCO repaired the dry-dock, and USS TRUXTUN was successfully dry-docked on October 19, 2017.
  • NASSCO's expert concluded that NASSCO had the approved processes, knowledge, skills, equipment, and ability to safely dry-dock USS TRUXTUN on October 9, 2017.
  • NASSCO certified its claim in the amount of $576,912.

Parties

Appellant
Metro Machine dba General Dynamics NASSCO-Norfolk
Respondent Agency
Navy
Contracting Agency
Naval Sea Systems Command
Contract Number
N00024-16-D-4408
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