New Iraq Ahd Company ( 2014 )

ARMED SERVICES BOARD OF CONTRACT APPEALS
Appeal of-- )
)
New Iraq Ahd Company ) ASBCA No. 58778)
Under Contract No. 000000-00-0-0000 )
APPEARANCE FOR THE APPELLANT: Mr. Abbas Abed Mohsin
Owner
APPEARANCES FOR THE GOVERNMENT: Raymond M. Saunders, Esq.
Army Chief Trial Attorney
CPT Vera A. Strebel, JA
Trial Attorney
OPINION BY ADMINISTRATIVE JUDGE DICKINSON
ON THE GOVERNMENT'S MOTION TO DISMISS
FOR LACK OF JURISDICTION
Appellant, New Iraq Ahd Company (NIAC) seeks $175,440.00 USD as
compensation for materials it purchased to install a fence along a major transportation
route in Iraq. The government moves to dismiss the appeal for lack of jurisdiction on
the basis that no contract was ever issued to NIAC. NIAC opposes the motion.
STATEMENT OF FACTS FOR PURPOSES OF THE MOTION
1. On 11 August 2008 the Commander, Camp Taji, Iraq, issued a
Memorandum for Record (MFR) proposing the construction of a new fence along
Route Tampa, a major transportation route in Iraq (R4, tab 1):
Trash continually piles along the road, in the shoulder, and
eventually travel into the surrounding villages. The trash
is a constant visual reminder of poverty and lack of
economic development, which is not the case for the area.
The Fence would limit the trash movement and allow civil
works employees to collect the trash easier. This fence
will demonstrate progress and economic development
within the local communities.
The MFR included a projected cost of $245,815.00 USD, indicated that funding was
not yet available and that, once funded, a contractor would be given a Notice to
Proceed (NTP) (id.).
2. On 5 September 2008 a Memorandum of Agreement (MOA) between the
government and NIAC was executed, the terms of which included:
1. 2-14, 2nd BDE, 25th Infantry Division has requested to
install a fence on Route Tampa on the western side of
the south bound lane from MB 3318 9882 to 38S MB
3500 9617.
2. The following outlines the terms of this agreement:
E. This agreement will not become effective until
funding is approved and the contractor is
notified by the Project Officer to begin work.
F. Funds are not presently available for this
contract. The Government's obligation under
this contract is contingent upon the availability
of appropriated funds from which payment for
contract purposes can be made. No legal
liability on the part of the Government for any
payment may arise until funds are made
available to the Contracting Officer for this
contract and until the Contractor receives notice
of such availability, to be confirmed in writing
by the contracting officer.
3. By signing below both parties agree to the terms in
paragraph 2.
(R4, tabs 2-3A) The MOA was signed by both the government and NIAC (compl.;
R4, tabs 2-3A). There was nothing in the MOA directing NIAC to perform any work
or preparation for work prior to funding followed by the issuance of an NTP.
3. After signing the MOA, NIAC elected to purchase materials with which to
construct the fence, incurring costs of $175,440.00 USD (comp I.; app. opp'n).
4. Funding never became available for the project and an NTP was never
issued to NIAC (R4, tabs 3-3B; compl.; app. opp'n). It is undisputed that NIAC did
not perform any of the work described in the MOA.
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5. On 17 July 2013, almost five years after signing the MOA, NIAC contacted
the Board seeking payment of$175,440.00 USD. The matter was docketed on 18 July
2013 as ASBCA No. 58778.
DECISION
The Board has jurisdiction under the Contract Disputes Act (CDA) of 1978,
41 U.S.C. §§ 7101-7109, involving disputes that arise under or relate to contracts for
the procurement of goods or services. The MOA entered into by NIAC and the
government expressly made the agreement contingent upon the availability of funds.
The funds never became available and, by its express terms, the agreement therefore
never became binding on either the government or NIAC. It is undisputed that NIAC
did not provide any goods or services to the government under the terms of the MOA.
The purchase of materials made by NIAC prior to funding and receipt of an NTP was a
unilateral decision made by NIAC and NIAC alone bore the risk that the project would
not be funded.
The government's motion to dismiss for lack of jurisdiction is granted because
there was never any contract.
Dated: 12 June 2014
Adminis, rative Judge
Armed Services Board
of Contract Appeals
I concur
M
RICHARD SHACKLEFORD
Administrative Judge Administrative Judge
Acting Chairman Vice Chairman
Armed Services Board Armed Services Board
of Contract Appeals 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 No. 58778, Appeal of New
Iraq Ahd Company, rendered in conformance with the Board's Charter.
Dated:
JEFFREY D. GARDIN
Recorder, Armed Services
Board of Contract Appeals
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