61854

General Dynamics - National Steel and Shipbuilding Company

January 25, 2021Judge Paul
Sustained / Appellant PrevailedContract InterpretationContract Changes / Constructive ChangesEquitable Adjustment (REA)Government-Furnished Property

General Dynamics - National Steel and Shipbuilding Company appealed the Navy contracting officer's deemed denial of a certified claim for equitable adjustments arising from requirements to provide and prefabricate material previously identified as Government Furnished Material. On cross-motions for summary judgment, the Board granted appellant's motion, denied the Navy's motion, sustained the appeal, and returned the matter for determination of quantum.

Material Facts

  • The Navy awarded appellant a fixed-price contract for repair and alteration work during the Dry-Docking Phased Maintenance Availability onboard USS MAKIN ISLAND.
  • The contract's work items identified Government Furnished Material and did not place fabrication responsibility for that material on appellant.
  • Appellant did not include amounts for fabrication of Government Furnished Material in its proposal.
  • The Navy issued Requests for Contract Change requiring appellant to provide 17 work items comprising over 11,000 line items of material as Contractor Furnished Material rather than Government Furnished Material.
  • The Requests for Contract Change were marked "For Pricing Only" and described appellant's responsibilities in terms of "Procure Material."
  • The contracting officer later asserted that prefabrication requirements were included in the base contract and directed appellant to perform those requirements.
  • The contracting officer subsequently asserted that 359 items of the converted Contractor Furnished Material should have been priced by appellant, including prefabrication efforts.
  • Appellant submitted a certified claim concerning the fabrication requirements placed on it by the Navy, and the contracting officer did not respond.

Parties

Appellant
General Dynamics - National Steel and Shipbuilding Company
Respondent Agency
Navy
Contracting Agency
Naval Sea Systems Command, Department of the Navy (NAVSEA)
Contract Number
N00024-17-C-4426
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