Opinion ID: 785846
Heading Depth: 2
Heading Rank: 4

Heading: The Board Proceeding

Text: 19 The Board concluded that the term zone was ambiguous as used in the lease. HPI/GSA-3C, 03-1 B.C.A. (CCH) at 158,683-84. Although paragraph 6.6(e) was entitled zone control and the SFO Amendment included a formula referencing zones, the Board explained, neither provision provided a definition of the term. The Board further found that the term did not have an accepted definition in the HVAC industry, citing an industry handbook and the testimony of technical witnesses presented during the proceeding. Id. at 158,683. 20 The Board next found HPI's equating of zone to thermostat unreasonable, as it would result in an hourly cost to the Government of 45% of the daily rental rate for the building, assuming overtime HVAC use in all 366 of HPI's zones. Id. at 158,684. If the contracting officer had agreed to such a seemingly imprudent bargain, the Board explained, we would have expected it to be absolutely clear in the lease negotiation records.... Id. The Board faulted Wieger's failure to clarify — and his deliberate avoidance of — the meaning of zone. 6 The Board rejected HPI's argument that the doctrine of contra proferentem, which requires construing ambiguous terms against the drafter, required construing the ambiguity against the Government in this case, both because HPI's interpretation was unreasonable and the SFO Amendment was negotiated. 21 The Board found the Government's interpretation, on the other hand, reasonable as consistent with both the Zone Control provision in paragraph 6.6(e) and the Government's stated intent and purpose of efficiency underlying the SFO Amendment. Id. at 158,686. The Government's interpretation, the Board explained, was also consistent with the construction of the HVAC system, which required treatment of a minimum of 25,000 square feet of space if any space was to receive overtime HVAC. The Board concluded: 22 [g]iven the flexibility of the system's design, it makes little sense to define the term zone in terms of a set amount of space and makes much more sense to define zone as the Government does, i.e., the amount of space served by the air handling units when delivering overtime HVAC. 23 Id. 24 Finally, the Board rejected the Government's interpretation of the zone charge of $40 as a single, rather than an hourly, charge. Id. HPI timely appealed, and we have jurisdiction pursuant to 28 U.S.C. § 1295(a)(10).