Court Opinion

ID: 9900149
Source: CourtListenerOpinion
Date Created: 2023-11-18 22:01:21.038587+00
Date Added: 2024-06-11T09:21:00.871625
License: Public Domain

ARMED SERVICES BOARD OF CONTRACT APPEALS

Appeal of -                                      )
                                                 )
MECTS Services Joint Venture                     ) ASBCA No. 63441
                                                 )
Under Contract No. N68335-13-C-0292              )

APPEARANCES FOR THE APPELLANT:                      Antonio R. Franco, Esq.
                                                    Matthew E. Feinberg, Esq.
                                                    Lauren R. Brier, Esq.
                                                     PilieroMazza PLLC
                                                     Washington, DC

APPEARANCES FOR THE GOVERNMENT:                     Samuel W. Morris, Esq.
                                                     DCMA Chief Trial Attorney
                                                    Sheena M. Wandera, Esq.
                                                    Peter M. Casey, Esq.
                                                     Trial Attorneys
                                                     Defense Contract Management Agency
                                                     Hanscom Air Force Base, MA

                 OPINION BY ADMINISTRATIVE JUDGE YOUNG
                             ON JURISDICTION

       On October 27, 2022, MECTS Services Joint Venture, a joint venture
comprised of two members, MEC Development, LLC, and Technology and Supply
Management, LLC (TaSM) (MECTS or appellant) appealed a contracting officer’s
final decision (COFD) dated July 6, 2022, by which the Defense Contract
Management Agency (DCMA or government) disallowed certain direct costs. The
Board, sua sponte, directed the parties to brief the timeliness of the appeal in light of
the provisions of the Contract Disputes Act of 1976 (CDA), 41 U.S.C. § 7104. We
hold that the appeal was untimely filed and dismiss it for lack of jurisdiction.

                            STATEMENT OF FACTS (SOF)

       1. The COFD was issued on July 6, 2022 (R4, tab 30). On July 7, 2022, the
contracting officer mailed the COFD by United States Postal Service (USPS) certified
mail to three representatives of appellant (gov’t br. at 1). Of the three letters that the
government mailed to appellant’s representatives, the one addressed to TaSM’s CEO,
Ms. Marina Burghstahler was successfully delivered on July 11, 2022 (id.; gov’t br.,
ex. 1, USPS proof of delivery; see also app br. at 1), while the other two letters were
returned as undeliverable (gov’t br. at 1; ex. 2, USPS certified mail receipts with
legend “returned.”) The letters and return receipts were not included in the Rule 4 file
and were later provided by the government as attachments to its brief.

      2. After several weeks of not receiving a response from the contractor, on
August 1, 2022, the DCMA contracting officer subsequently emailed a copy of the
COFD to appellant’s other representatives, Ms. Mary Walgrave and
Mr. Clarence O’Berry (gov’t br. at 2; R4, tab 30).

       3. Appellant states that it first became aware of the COFD with DCMA’s email
of August 1, 2022 (app. br. at 2), and that it was not aware that the government had
sent the COFD via certified letters until appellant received the government’s brief on
the timeliness of the appeal (app. br. at 1 n.1).

       4. Appellant “does not contest that . . . the USPS successfully delivered the
final decision to Ms. Burghstahler on July 11, 2022” (app. br. at 1-2). Accordingly,
we find that appellant received notice of the decision on July 11, 2022.

       5. On October 27, 2022, MECTS appealed the COFD to the Board. In the
notice of appeal, MECTS stated that it received the COFD on August 1, 2022 and that
its appeal was timely filed within 90 days of receipt. We take judicial notice that
October 27, 2022, is 87 days after August 1, 2022, and 108 days after July 11, 2022.

                                      DECISION

       Under the CDA, a COFD “is not subject to review by any forum, tribunal, or
Federal Government agency, unless an appeal or action is timely commenced.”
41 U.S.C. § 7103(g). To initiate an appeal from a final decision to an agency board, a
contractor must do so within 90 days from receipt of the decision. 41 U.S.C. § 7104(a).
This 90-day appeal period is statutory and may not be waived or extended. See Cosmic
Constr. Co. v. United States, 697 F.2d 1389, 1390 (Fed. Cir. 1982). Therefore, a timely
appeal is a jurisdictional prerequisite for the Board to entertain an appeal. See Mansoor
Int’l Dev. Servs., ASBCA No. 58423, 14-1 BCA ¶ 35,742 at 174,926-27.

       The CDA requires a contracting officer to “mail or otherwise furnish a copy of
the decision to the contractor.” 41 U.S.C. § 7103(d). Federal Acquisition Regulation
(FAR) FAR 33.211(b) further provides that the contracting officer is to furnish a copy
“by certified mail, return receipt requested, or by any other method that provides
evidence of receipt.” While appellant bears the burden of proof to establish that its
appeal to the Board was timely filed, the government bears the burden of establishing
the receipt date of the final decision by the contractor. Singleton Enterprises, ASBCA
No. 58235, 14-1 BCA ¶ 35,554 at 174,227. To meet this burden, the government must
provide “objective indicia” of actual physical receipt. Riley & Ephriam Constr. Co. v.
United States, 408 F.3d 1369, 1372 (Fed. Cir. 2005).

                                           2
         We directed the parties to brief the timeliness of this appeal. Their respective
positions are as follows: appellant concedes that the 90-day period to file its appeal
started running on July 11, 2022, when Ms. Burghstahler received the COFD via
certified mail; appellant asserts that the appeal was untimely filed, and requests that we
dismiss it for lack of jurisdiction (app. br. at 1-3). Additionally, relying on States
Roofing Corp. v. United States, 70 Fed. Cl. 299, 301-2 (2006) (citing Nat’l Neighbors,
Inc. v. United States, 839 F.2d 1539, 1542 (Fed. Cir. 1988)), appellant avers that it
intends to file a protective suit with the Court of Federal Claims while the Board
determines whether the appeal before it is timely (id. at 3). * The government states
that it presently takes no position on when the statutory 90-day period for MECTS to
file its appeal to the Board expired (gov’t br. at 2). We examine the facts before us to
decide whether we have jurisdiction to entertain this appeal.

        We found that the contracting officer sent the COFD to the contractor by
certified mail which was received by the contractor on July 11, 2022, as evidenced by
the USPS receipt of delivery provided by the government (SOF ¶¶ 1, 4). The USPS
receipt of delivery constitutes “objective indicia” of delivery of the COFD to the
contractor and thus the government has met its burden of establishing the receipt date
of the final decision. Riley & Ephriam Constr., 408 F.3d at 1372. We conclude that
MECTS received the COFD on July 11, 2022.

       Appellant states that it became aware of the COFD on August 1, 2022, by the
government’s email, and that it was not aware of the certified letters at the time it filed
the appeal with the Board (SOF ¶¶ 2, 3). Appellant explicitly does not contest that its
representative received the COFD by certified mail on July 11, 2022 (SOF ¶ 4).
MECTS filed its appeal with the Board on October 27, 2022, 108 days after receipt of
the COFD on July 11, 2022 (SOF ¶ 5). The 90-day appeal period set by the CDA is
statutory and may not be waived or extended. See Cosmic Const. Co, 697 F.2d
at 1390.

*
    We do not opine on appellant’s intent to file suit at the Court of Federal Claims.

                                              3
  Because the appeal was filed with the Board after the 90-day period had expired, we
  conclude that the appeal was untimely.

                                         CONCLUSION

            We dismiss the appeal for lack of jurisdiction.

            Dated: July 19, 2023

                                                    LIS B. YOUNG
                                                    Administrative Judge
                                                    Armed Services Board
                                                    of Contract Appeals

 I concur                                            I concur

 RICHARD SHACKLEFORD                                 OWEN C. WILSON
 Administrative Judge                                Administrative Judge
 Acting Chairman                                     Vice Chairman
 Armed Services Board                                Armed Services Board
 of Contract Appeals                                 of Contract Appeals

       I certify that the foregoing is a true copy of the Order of Dismissal of the Armed
Services Board of Contract Appeals in ASBCA No. 63441, Appeal of MECTS Services
Joint Venture, rendered in conformance with the Board’s Charter.

       Dated: July 19, 2023

                                                    PAULLA K. GATES-LEWIS
                                                    Recorder, Armed Services
                                                    Board of Contract Appeals

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