64426

Visionary Construction, Inc. dba Visionary Services

August 20, 2026Judge Osterhout
Denied / Government PrevailedTermination for DefaultStatutory ComplianceSmall Business

Visionary Construction, Inc. appealed the Navy’s termination of its parking-garage-repair contract for default, asserting that it had not been given a fair opportunity to obtain compliant performance and payment bonds and that the termination should be converted to one for convenience. The Board granted the Navy’s motion for summary judgment and denied the appeal, holding that Visionary failed to obtain compliant bonds despite repeated opportunities and that the contracting officer’s decision was not unreasonable, arbitrary, or capricious.

Material Facts

  • The Navy awarded Visionary a contract for parking-garage repairs at Building 7401 at Great Lakes Naval Base in Illinois.
  • The contract required performance and payment bonds, and the solicitation required bonds equal to 100% of the awarded dollar value.
  • The contract incorporated FAR 52.228-15 and FAR 52.228-1, and the Navy directed Visionary to submit the bonds within 15 calendar days after award.
  • Visionary’s initial bonds identified First Standard Asurety, LLLP as surety and were signed in a capacity associated with that business entity.
  • The Navy determined that First Standard Asurety, LLLP was neither an approved corporate surety nor an individual surety.
  • Visionary did not pursue the Navy’s stated option of having David Harris act exclusively in his individual capacity as surety.
  • Visionary proposed a teaming agreement under which payments from the customer would be made directly to Martin Construction.
  • The Navy rejected the proposed teaming arrangement because it would require direct payment to Martin Construction and implicated the Assignment of Claims Act.
  • ACSTAR Insurance Company declined to write the bond after the Navy refused to consent to assignment of contract monies to ACSTAR.
  • The Navy issued a cure notice directing Visionary to submit compliant performance and payment bonds by September 2, 2025.
  • Visionary informed the Navy that it was not in a position to meet the final deadline for acceptable bonds and requested termination for convenience.
  • The Navy terminated the contract for default, and subsequently awarded the contract to Diverse Solutions Group, Inc.

Parties

Appellant
Visionary Construction, Inc. dba Visionary Services
Respondent Agency
United States Navy
Contracting Agency
United States Navy
Contract Number
N40085-25-C-2500
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