ARMED SERVICES BOARD OF CONTRACT APPEALS 
 
Appeals of -- ) 
 ) 
Odyssey International, Inc.  ) ASBCA Nos. 62085, 62145, 62193 
 ) 
Under Contract No. W912HN-19-C-3005 ) 
 
APPEARANCES FOR THE APPELLANT: Brian C. Johnson, Esq. 
 H. Burt Ringwood, Esq. 
 Alan R. Houston, Esq. 
   Strong & Hanni Law Firm 
   Salt Lake City, UT 
 
APPEARANCES FOR THE GOVERNMENT: Michael P. Goodman, Esq. 
   Engineer Chief Trial Attorney 
 Laura J. Arnett, Esq. 
 Anna F. Kutz, Esq. 
 Madeline Crocker, Esq.  
   Engineer Trial Attorneys 
   U.S. Army Engineer District, Savannah 
 
OPINION BY ADMINISTRATIVE JUDGE MCILMAIL 
 
 Appellant, Odyssey International, Inc., appeals from (1) the May 2019 default 
termination of its construction contract for failure to secure bonding (ASBCA 
No. 62085), (2) the government’s assessment against Odyssey of $1.9 million in 
allegedly excess reprocurement costs (ASBCA No. 62145), and (3) a related 
Contractor Performance Assessment System (CPARS) evaluation rating Odyssey’s 
performance “Unsatisfactory” (ASBCA No. 62193).  The government requests 
summary judgment in these consolidated appeals, contending, inter alia:  (1) the 
government acted within its discretion to terminate the contract for default and 
Odyssey has not demonstrated that its failure to perform was excusable (ASBCA 
No. 62085); (2) the government is entitled to the alleged excess reprocurement costs 
(ASBCA No. 62145); and (3) the CPARS rating was properly issued and not arbitrary 
and capricious or an abuse of discretion (ASBCA No. 62193).  The Board has stayed 
proceedings pending resolution of the motion, and the parties have not yet engaged in 
any discovery. 
 
STATEMENT OF FACTS FOR PURPOSES OF THE MOTION 
 
The following is not in genuine dispute.  On March 27, 2019, Odyssey and the 
government contracted for appellant to construct an air traffic control tower for an Air 

 
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Force Base in North Carolina, for the amount of $19,832,000 (gov’t mot. at 3 ¶¶ 1, 6; 
app. resp. at 3 ¶¶ 1, 6).  The contract incorporates by reference Federal Acquisition 
Regulation (FAR) 52.228-15, PERFORMANCE AND PAYMENT BONDS – 
CONSTRUCTION (OCT 2010) (gov’t mot. at 3 ¶ 7; see app. resp. at 3 ¶ 7).  The 
contract provides that Odyssey submit performance and payment bonds to the 
government within 10 days after award (gov’t mot. at 4 ¶ 8; see app. resp. at 3 ¶ 8).  
The contract also incorporates by reference FAR 52.228-1, BID GUARANTEE 
(SEP 1996), and FAR 52.249-10, DEFAULT (Fixed-Price Construction) (APR 1984) 
(gov’t mot. at 4 ¶¶ 9-10; see app. resp. at 3 ¶¶ 9-10). 
 
On April 10, 2019, Odyssey’s insurance agent wrote to Odyssey:  
 
We have made vigorous efforts to market your account to 
these standard-market sureties CNA, Great American, 
Zurich, and NAS, and one of the leading specialty market 
sureties, HCC Toyoko Marine.  Even with the $1,000,000 
capitalization from Whitney’s [Whitney McBride, 
Odyssey’s principal shareholder (McBride decl. ¶ 1)] home 
refinance, none of these sureties will bond the [] project.  
The primary reason with each surety is way too little 
working capital in the company.  To support a 
$40-50,000,000 backlog, the minimum working capital 
number is $2,500,000, and usually that is with a hefty bank 
line of credit and substantial net worth from personal 
indemnitors.  While your profit projections for 2019 are 
very encouraging, it doesn’t fix working capital soon 
enough for surety support on this size of work program.    
 
Additionally, . . . [t]he potential Hub-Zone violation is a 
big cloud until you are absolved of liability . . . .   
 
(App. supp. R4, tab 24 at 30 (alterations added); gov’t mot. at 9 ¶ 46; see app. resp. 
at 6 ¶ 46, 8 ¶ 8; gov’t reply at 6 ¶ 8)  On April 16, 2019, one surety wrote to Odyssey’s 
insurance agent: 
 
Although the account is thin, the main reason we have to 
pass on this is due to the Hub Zone investigation in place.  
The law underlying the false claim (the false claim act) has 
no individual Hub Zone designation which would mean the 
company is subject to investigation.  So even though the 
FBI has indicated it is not focusing on the company, there 
is still a potential that can occur and a surety who issues 
any bonds for the company who after the fact is found are 

 
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not what the claim to be (Hub Zone compliant) are subject 
to triple damages. 
 
We, as a company, have seen this in the past and will not 
consider any requests with anything pending regarding 
Hub Zone claims.  We would not be willing to consider 
anything for the account until this issue is completely 
resolved. 
 
(App. supp. R4, tab 30 at 40-41; see app. resp. at 8 ¶ 10; gov’t reply at 6 ¶ 10)  On 
April 22, 2019, Odyssey wrote to the contracting officer (CO) indicating Odyssey’s 
inability to obtain performance and payment bonds (gov’t mot. at 4 ¶ 12; app. resp. 
at 3 ¶ 12).  On April 25, 2019, the CO issued a cure notice to Odyssey, requiring 
Odyssey to produce performance and payment bonds by May 6, 2019 (gov’t mot. at 4 
¶ 13; app. resp. at 3 ¶ 13). 
  
On May 3, 2019, the CO received an email from Odyssey and a May 1, 2019 
letter from Odyssey’s insurance agent, re-iterating Odyssey’s inability to obtain 
performance and payment bonds for the contract (gov’t mot. at 4 ¶ 14; app. resp. at 3 
¶ 14; see R4, tab 4.03).  In the email, Odyssey indicated that it was willing to “waive 
the time granted to cure” and that the government was “free to proceed in replacing 
Odyssey International, Inc. as the contractor on the project” (gov’t mot. at 4 ¶ 14; app. 
resp. at 3 ¶ 14 (addressing R4, tab 4.03)).  In the letter from the insurance agent to the 
CO, the insurance agent wrote: 
 
In the summer of 2018, Odyssey was informed that their 
former chief financial officer was a prime target in a 
criminal investigation by the US Attorney’s Office.  The 
investigation is ongoing and involves a potential HUB 
Zone violation by Odyssey and fraud by the former chief 
financial officer. . . .  With all the sureties we approached, 
the “cloud” of this investigation materially impairs 
Odyssey’s ability to obtain bonds on new projects until the 
case is settled. 
 
(R4, tab 4.03 at 265)   
 
As of May 6, 2019, Odyssey had not provided to the government the 
performance and payment bonds required by the contract for Odyssey to proceed with 
performance of the contract (gov’t mot. at 5 ¶ 16; app. resp. at 4 ¶ 16).  On May 6, 
2019, the CO issued a notice terminating the contract for default for failure to provide 
performance and payment bonds, “effective immediately upon receipt of this Notice” 
(R4, tab 2.01; see gov’t mot. at 5 ¶ 16; app. resp. at 4 ¶ 16).  On May 8, 2019, the CO 

 
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issued a modification terminating the contract for default “in conjunction with the 
Notice of Termination dated May 6, 2019” (R4, tab 5.01; see gov’t mot. at 5 ¶ 16; see 
app. resp. at 4 ¶ 16). 
 
DECISION 
 
 Summary judgment shall be granted if the movant shows that there is no 
genuine dispute as to any material fact and the movant is entitled to judgment as a 
matter of law.  Avant Assessment, LLC, ASBCA No. 58867, 15-1 BCA ¶ 36,067 
at 176,127 (citing FED. R. CIV. P. 56(a)).  All significant doubt over factual issues must 
be resolved in favor of the party opposing summary judgment, and we draw all 
justifiable inferences in favor of the nonmoving party.  DCX-CHOL Enterprises, 
ASBCA Nos. 61806, 61807, 20-1 BCA ¶ 37,552 at 182,341.  There is no dispute that 
Odyssey failed to provide the bonds required by the contract; consequently, the 
government is entitled to judgment as a matter of law in ASBCA No. 62085 that 
Odyssey defaulted on the contract.  Marshall’s Elec., Inc., ASBCA No. 59749, 16-1 
BCA ¶ 36,300 at 177,017. 
 
Otherwise, we are not persuaded that the government has met its burden, for at 
least one reason.  The government cites FAR 52.249-10 (mot. at 4 ¶ 10), which, at 
paragraph (b), provides: 
 
The Contractor’s right to proceed shall not be terminated 
nor the Contractor charged with damages under this clause, 
if . . . The delay in completing the work arises from 
unforeseeable causes beyond the control and without the 
fault or negligence of the Contractor.  Examples of such 
causes include . . . acts of the Government in either its 
sovereign or contractual capacity . . . . 
 
48 C.F.R. § 52.249-10 (1984) (emphasis added).  The driving issue of the appeals 
appears to be whether the reason Odyssey did not secure bonding was because it 
lacked working capital or because it was the subject of a federal criminal investigation 
into a potential “HubZone” violation (see gov’t mot. at 1-3; see app. resp. at 1-2).  The 
recitations set forth above demonstrate that, at this, pre-discovery stage, there is a 
genuine dispute as to that material fact.  Even the government appears to contribute to 
that dispute by stating (gov’t reply at 10), “[n]o time extension would resolve this 
situation since Odyssey is now the subject of impending criminal prosecution arising 
from that investigation.” 
 
The government also seems to say that even if the criminal investigation 
contributed to Odyssey’s failure to obtain bonds, the default would not be excused (see 
gov’t mot. at 2-3; see gov’t reply at 11-13).  The parties’ briefing does not adequately 

 
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address that issue.  For example, the United States Court of Claims held in a different 
but related context that: 
 
Although it is well settled that the mere financial 
incapacity of a contractor to perform is not a cause beyond 
its control and without its fault or negligence, it is equally 
well established that financial incapacity can be excusable 
when it was precipitated by causes beyond the control and 
without the fault or negligence of the contractor.  This is a 
fortiori true when the precipitating causes are acts or 
omissions of the Government, the other contracting party. 
 
Nat’l E. Corp. v. United States, 477 F.2d 1347, 1356 (Ct. Cl. 1973) (internal footnote 
citations omitted).  In another different but related context, that court also held: 
 
[Plaintiff contractor] may not recover . . . [consequential] 
damages which allegedly resulted when, because of [the 
government’s] actions, the bonding company or others 
refused to issue bonds on behalf of plaintiff on other 
contracts or work, thus crippling the contractor’s ability to 
obtain new contracts or new work.  Even if proven, these 
damages would be too remote and speculative to be 
recoverable. 
 
Olin Jones Sand Co. v. United States, 225 Ct. Cl. 741, 743-44 (1980) (alterations 
added).  And in another failure-to-bond case cited earlier in this opinion, we said, 
without elaborating upon the implications of the sentence emphasized below (which 
sentence the government quotes from, but only in its reply brief (reply at 9)): 
 
Appellant has not shown that its default on this contract 
was excusable.  Accordingly, we find that the government 
was justified in terminating this contract for default under 
the Default clause of the contract.  In addition, a 
contractor’s failure to provide performance and payment 
bonds is a breach of a condition that can support a default 
termination.  This is a separate and distinct ground for 
default termination. 
 
Marshall’s Elec., 16-1 BCA ¶ 36,300 at 177,017 (emphasis added) (citations omitted). 
 
Finally, the government says that Odyssey defaulted by anticipatorily 
repudiating the contract (gov’t reply at 17-18).  The government having raised that 
issue for the first time in its reply brief, we decline to address it further at this stage.  

 
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See Buck Town Contractors & Co., ASBCA No. 60939, 18-1 BCA ¶ 36,951 
at 180,059. 
 
CONCLUSION 
 
We find it unnecessary, at this stage, to address the parties’ other arguments.  
The government is granted summary judgment in ASBCA No. 62085 that Odyssey 
defaulted on the contract; otherwise, the government’s motion for summary judgment 
is denied. 
 
 Dated:  June 2, 2020 
 
 
 
TIMOTHY P. MCILMAIL 
Administrative Judge 
Armed Services Board 
of Contract Appeals 
 
I concur 
 
 
 
 I concur 
 
 
RICHARD SHACKLEFORD 
Administrative Judge 
Acting Chairman 
Armed Services Board 
of Contract Appeals 
 OWEN C. WILSON 
Administrative Judge 
Vice Chairman 
Armed Services Board 
of Contract Appeals 
 
  


 
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 I certify that the foregoing is a true copy of the Opinion and Decision of the 
Armed Services Board of Contract Appeals in ASBCA Nos. 62085, 62145, 62193, 
Appeals of Odyssey International, Inc., rendered in conformance with the Board’s 
Charter. 
 
 Dated:  June 2, 2020 
 
 
       
  
PAULLA K. GATES-LEWIS 
Recorder, Armed Services 
Board of Contract Appeals