64490

PDO Ahusaka Joint Venture LLC

July 23, 2026Judge Herzfeld
Partially SustainedDiffering Site ConditionsEquitable Adjustment (REA)Quantum / DamagesSmall Business

PDO Ahusaka Joint Venture LLC appealed the denial of claims for equitable adjustments arising from allegedly differing underground utility conditions encountered during a storm system upgrade and flood control project. The Board sustained the claim concerning three junction boxes, denied the claim concerning two communication conduits, and awarded the junction-box amount plus CDA interest.

Material Facts

  • The Army awarded PDO a firm fixed-price contract to design and build a storm system upgrade and flood control project at the Detroit Arsenal.
  • The contract required PDO to obtain utility maps, field verify and mark actual utility locations, and notify the Army of conflicts before construction.
  • The contract characterized the Army's underground utility information as approximate and provided as a courtesy or for reference only.
  • PDO obtained an excavating permit, used MISS DIG, used ground penetrating radar, and conducted geotechnical investigations through subcontractors.
  • PDO's subcontractor encountered three underground junction boxes at a location where the Army's drawings did not identify them.
  • After significant rain, emergency communications were disrupted, and the Army determined that the junction boxes caused the disruptions.
  • PDO did not inform the contracting officer's representative about the junction boxes until more than two weeks after their discovery.
  • PDO excavated and backfilled the junction-box area and repaired damaged underground fiber splicers.
  • At another location, PDO's subcontractor unearthed and damaged two communication conduits during machine excavation.
  • The Army's drawings did not identify the conduits, but they did identify water, electrical, and gas lines at that location.
  • The conduit damage did not disrupt communications, and the Army determined that the encased fiberoptic cables were undamaged.
  • PDO repaired the conduits, including backfilling the area and performing other repair work.

Parties

Appellant
PDO Ahusaka Joint Venture LLC
Respondent Agency
Department of the Army
Contracting Agency
Department of the Army
Contract Number
W56HZV-20-C-L865
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