GRANTED:  August 19, 2010 
CBCA 1704 
HEERY/PMC JV, 
Appellant, 
v. 
DEPARTMENT OF VETERANS AFFAIRS, 
Respondent. 
William E. Dorris of Kilpatrick Stockton LLP, Atlanta, GA, counsel for Appellant. 
Kenneth B. MacKenzie, Charlma J. Quarles, and Phillipa L. Anderson, Office of the 
General Counsel, Department of Veterans Affairs, Washington, DC, counsel for Respondent. 
Before Board Judges DANIELS (Chairman), STERN , and McCANN. 
McCANN, Board Judge. 
Heery/PMC JV (Heery) contracted with the Department of Veterans Affairs (VA) for 
the construction of a 314 replacement bed building at the VA Medical Center in San Juan, 
Puerto Rico.  The contract was designated as V101BC0213.  The municipality of San Juan 
had a construction excise or sales tax which applied to the construction work under the 
contract.  Heery paid this tax to the city of San Juan in the amount of $4,767,025.  The 
contracting officer refused to reimburse Heery for this payment. 
On April 1, 2009, Heery sent the contracting officer a claim alleging entitlement to 
the $4,767,025 which it had paid to San Juan under the San Juan Municipal Construction 
Tax.  On June 22, 2009, the contracting officer denied Heery’s claim. 

 
 
    
   
 
 
  
 
 
   
2 CBCA 1704 
The parties have entered into a settlement agreement whereby they agreed to settle 
the issues in this case including Contract Disputes Act interest, attorney fees, and any 
expenses incurred in conjunction with pursuing this appeal.  The settlement agreement 
stated: 
NOW THEREFORE, in consideration of the promises and understandings 
contained herein and intending to be legally bound, the parties do agree as 
follows: 
1.	 Respondent agrees to pay Appellant the amount of $4,767,025. 
This amount represents a complete settlement of the appeal and 
includes all costs, both direct and indirect, as well as any 
attorney’s fees and expenses and any interest under the Contract 
Disputes Act of 1978, 41 U.S.C. §§ 601-613. 
2.	 The parties agree to the Board’s issuance of a Judgment in
 
Appellant’s favor and shall jointly move the Board for the
 
issuance of such a Judgment in the amount of $4,767,025, to be
 
paid to Appellant from the permanent indefinite judgment fund,
 
31 U.S.C. § 1304.
 
3.	 Appellant hereby releases the Government from any and all
 
liability for further equitable adjustments attributable to the
 
facts and/or circumstances giving rise to the appeal.  Appellant
 
reserves its rights to claim for: (a) any bond adjustments relating
 
to the above settlement payment; and (b) construction municipal
 
tax on change orders to the Contract.
 
In their motion for judgment on stipulated settlement the parties agree that they will 
not seek reconsideration of or relief from this Board’s decision awarding judgment, and that 
they will not appeal the Board’s decision. 

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3 CBCA 1704 
Decision 
Accordingly, CBCA 1704 is GRANTED.  In accordance with the settlement 
agreement, the Board awards the sum of $4,767,025 to be paid from the permanent 
indefinite judgment fund.  31 U.S.C. § 1304 (2006). 
R. ANTHONY McCANN 
Board Judge 
We concur: 
STEPHEN M. DANIELS JAMES L. STERN 
Board Judge Board Judge