Free Cross Motion [Dispositive] - District Court of Federal Claims - federal

Case 1:02-cv-01500-GWM

Document 75-2

Filed 10/02/2006

Page 1 of 5

NO. 02-1500C (Judge George W. Miller)

IN THE UNITED STATES COURT OF THE FEDERAL CLAIMS JACOBS ENGINEERING GROUP, INC., Plaintiff, v. THE UNITED STATES, Defendant.

DEFENDANT'S CROSS-MOTION FOR SUMMARY JUDGMENT

PETER D. KEISLER Assistant Attorney General

DAVID M. COHEN Director

JAMES W. POIRIER Attorney Commercial Litigation Branch Civil Division Department of Justice Attn: Classification Unit 8th Floor, 1100 L St, N.W Washington, D.C. 20530 Tele: (202) 307-6289 Fax: (202) 514-7969 October 2, 2006 Attorneys for Defendant

Case 1:02-cv-01500-GWM

Document 75-2

Filed 10/02/2006

Page 2 of 5

TABLES OF CONTENTS PAGE DEFENDANT'S CROSS-MOTION FOR SUMMARY JUDGMENT . . . . . . . . . 1 STATEMENT OF THE CASE . . . . . . . . . . . . . . . . . . . . . 2 I. II. Summary Of Recent Proceedings . . . . . . . . . . . . 2 The Waiver Issue Has Become Moot . . . . . . . . . . 4 . . 5

III. The Remaining Dispute Concerns Liability For Fee STATEMENT OF FACTS

. . . . . . . . . . . . . . . . . . . . . . 6

SUMMARY OF THE ARGUMENT . . . . . . . . . . . . . . . . . . . . 7 ARGUMENT I. II. . . . . . . . . . . . . . . . . . . . . . . . . . . Standard Of Review . . . . . . . . . . . . . . . . 10 10

The United States Is Liable For All Allowable Costs (As Defined In The Federal Acquisition Regulation) Incurred By Jacobs But Not Yet Paid . .

12 15 15 16 18 26

III. Jacobs Is Not Entitled To Be Paid Fee . . . . . . . A. B. C. IV. V. The Court Has Already Ruled That Jacobs Is Not Entitled To Fee . . . . . . The Contract Expressly Provides For No Fee . . Jacobs Has Failed To Demonstrate Entitlement to Reformation Of The Contract . .

Fee Is Not A Cost . . . . . . . . . . . . . . . . . The Decision Of The Board Of Contract Appeals In January 2006 Does Not Establish That Jacobs Has Any Right To Be Paid Fee . . . . . A. B. The Board Never Possessed Jurisdiction . . . . The Board Did Not Find That Fee Was A Cost . . . . . . . . . . . . . . . . . . . . . . . . . . .

30 33 39 44

CONCLUSION

-i-

Case 1:02-cv-01500-GWM

Document 75-2

Filed 10/02/2006

Page 3 of 5

TABLE OF AUTHORITIES CASES PAGE

American President Lines, Ltd. v. United States, 821 F.2d 1571 (Fed. Cir. 1987) . . . . . . . . . . . . . 24 American Telephone and Telegraph Company v. United States, 307 F.3d 1374 (Fed. Cir. 2002) . . . . . . . . . . . . . 24 Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (1986) . . . . . . . . . . . . . . . . . passim Atlas Corporation v. United States, 895 F.2d 745 (Fed. Cir. 1990) . . . . . . . . . . . . . . 24 Case, Inc. v. United States, 88 F.3d 1004 (Fed. Cir. 1996) . . . . . . . . . . . . 31, 37 Dairyland Power Cooperative v. United States, 16 F.3d 1197 (Fed. Cir. 1994) . . . . . . . . . . . . 24, 25 De Brousse v. United States, 28 Fed. Cl. 187 (1993) . . . . . . . . . . . . . . . . . 40 D.L. Braughler Company v. West, 127 F.3d 1476 (Fed. Cir. 1997) . . . . . . . . . . . 32, 38

E.C. McAfee A/C Bristol Metal Industries of Canada, Ltd. v. United States, 832 F.2d 152 (Fed. Cir. 1987) . . . . . . . . . . . . . . 40 Hol-Gar Manufacturing Corp. v. United States, 169 Ct. Cl. 384, 351 F.2d 972 (1965) . . . . . . . . 21, 26 Jacobs Engineering Group, Inc. v. United States, 65 Fed. Cl. 451 (2005) . . . . . . . . . . . . . . . 3, 15

Jacobs Engineering Group, Inc. v. United States, 434 F.3d 1378 (Fed. Cir. 2006) . . . . . . . . . . . passim Jet, Inc. v. Sewage Aeration Systems, 223 F.3d 1360 (Fed. Cir. 2000) . . . . . . . . . . . . . 44 Manufacturer's Finance Company v. McKey, 294 U.S. 442 (1935) . . . . . . . . . . . . . . . . . . 24

-ii-

Case 1:02-cv-01500-GWM

Document 75-2

Filed 10/02/2006

Page 4 of 5

McAbee Construction, Inc. v. United States, 97 F.3d 1431 (Fed. Cir. 1996) . . . . . . . . . . . . . . 18 Mingus Constructors, Inc. v. United 812 F.2d 1387 (Fed. Cir. 1987) Montana v. United States, 440 U.S. 147 (1979) States, . . . . . . . . . . . 10, 11

. . . . . . . . . . . . . . . . . . 38 11 32

Ralph Larson & Son, Inc. v. United States, 17 Cl. Ct. 39 (1989) . . . . . . . . . . . . . . . . . . Reflectone, Inc. v. Dalton, 60 F.3d 1572 (Fed. Cir. 1995) . . . . . . . . . . . . .

Richerson Construction, Inc., GSBCA 1161, 93-1 BCA ¶ 25239 . . . . . . . . . . . . Sharman Company v. United States, 2 F.3d 1564 (Fed. Cir. 1993) Tronzo v. Bioment, Inc., 236 F.3d 1342 (Fed. Cir. 2001)

29, 30

. . . . . . . . . . 32, 37, 38 . . . . . . . . . . . 15, 16

Wilner v. United States, 24 F.3d 1397 (Fed. Cir. 1994) . . . . . . . . . . . . 34, 37 STATUTES 41 U.S.C. § 601 . . . . . . . . . . . . . . . . . . . . . 41 U.S.C. § 611 . . . . . . . . . . . . . . . . . . . . . REGULATIONS 48 C.F.R. § 15.901 . . . . . . . . . . . . . . . . . . . passim 25 32, 36 passim

48 C.F.R. § 16.303(a) . . . . . . . . . . . . . . . . . . . . 48 C.F.R. Part 31 . . . . . . . . . . . . . . . . . . . . 48 C.F.R. § 31.201-1 . . . . . . . . . . . . . . . . . .

passim passim passim

48 C.F.R. § 52.249-6 (1986) . . . . . . . . . . . . . . .

-iii-

Case 1:02-cv-01500-GWM

Document 75-2

Filed 10/02/2006

Page 5 of 5

INDEX TO THE SUPPLEMENTAL APPENDIX

PAGE Declaration of Mr. Russial, dated September 26, 2006 . . . . . . . . . . . . . . . . 284 Complaint filed by Jacobs at the Energy Board of Contract Appeals, dated December 2, 2005 . . . . . . . . . . . . . . . . . 286 Sub-contract, between Jacobs and Riley Stoker Corporation, dated June 28, 1994 . . . . . . . . . . . . . . . . . . 291 Sub-contract, between Jacobs and PSI Powerserve, dated November 22, 1992

. . . . . . . . . . . . . . . . 380

-iv-