Metro Machine dba General Dynamics NASSCO-Norfolk
Metro Machine dba General Dynamics NASSCO-Norfolk challenged liquidated damages assessed after a Navy destroyer overhaul was completed late, attributing the delay to the Navy's designated sole-source OEM and Navy oversight. The Board rejected the accord-and-satisfaction defense, held that responsibility for the delay rested with NASSCO and its subcontractor, and denied the appeal.
Material Facts
- The Navy awarded NASSCO a multiple award task order contract for maintenance, modernization, and repair of U.S. Navy warships.
- The delivery order concerned overhaul of the USS Bulkeley and included repair of boat-handling equipment, including a davit, winch assembly, and control panel.
- The work item required use of a technical representative of North American Crane and Equipment, and identified North Pacific Crane Company as the known source for that representative.
- NASSCO subcontracted the boat-handling-equipment repair work to AIT.
- AIT installed and powered the SLAD control console without the OEM representative present, and incorrect wiring damaged the console's mother board.
- AIT improperly installed the brake assembly, and additional problems occurred with hydraulic hoses and solenoids.
- NASSCO issued a stop-work order to AIT and directly hired NPCC to complete the SLAD work.
- Modification 03 extended the completion date from February 17, 2017, to March 21, 2017.
- The Navy deemed the work complete on April 5, 2017.
- The contracting officer assessed 14 days of liquidated damages and later reduced the assessment to $334,425.
- NASSCO's internal investigation attributed the console and brake problems to AIT.
Parties
- Appellant
- Metro Machine dba General Dynamics NASSCO-Norfolk
- Respondent Agency
- Navy
- Contracting Agency
- Navy
- Contract Number
- N00024-16-D-4408
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