Opinion

DCX-CHOL Enterprises, Inc.

Court
Armed Services Board of Contract Appeals
Filed
Mar 15, 2017
Status
Published
On the bench
McIlmail
Cited by
0 cases

The opinion

ARMED SERVICES BOARD OF CONTRACT APPEALS

Appeal of -- )

)

DCX-CHOL Enterprises, Inc. ) ASBCA No. 60782

)

Under Contract Nos. SPM4A4-11-V-4143 )

SPM4A6-11-C-008 l )

APPEARANCE FOR THE APPELLANT: Mr. Brian Gamberg

Executive Vice President

APPEARANCES FOR THE GOVERNMENT: Daniel K. Poling, Esq.

DLA Chief Trial Attorney

Edward R. Murray, Esq.

Elan D. Taylor, Esq.

Trial Attorneys

DLA Aviation

Richmond, VA

OPINION BY ADMINISTRATIVE JUDGE MCILMAIL ON THE

GOVERNMENT'S MOTION TO DISMISS FOR LACK OF JURISDICTION

Appellant, DCX-CHOL Enterprises, Inc. (DCX-CHOL), appealed from a

government demand for payment of $59,590 for alleged defective cable assemblies. The

government rescinded the demand for payment and requested dismissal of this appeal

for lack of jurisdiction. DCX-CHOL failed to respond to the government's motion. We

dismiss this appeal as moot.

STATEMENT OF FACTS (SOF) FOR PURPOSES OF THE MOTION

1. By letters dated 26 July 2016, the contracting officer (CO) notified DCX-CHOL

that there were two deficiencies with the cable assemblies DCX-CHOL provided under

order SPM4A4-l l-V-4143 and eleven deficiencies with the cable assemblies DCX-CHOL

provided under order SPM4A6-l l-C-008 l (gov't mot., exs. B, C).

2. By letter dated 23 August 2016, the CO made a demand for payment in the

amount of $59,590 for the cable assemblies deficiencies listed in the letters dated

26 July 2016 (gov't mot., ex. D).

3. On 23 August 2016, DCX-CHOL filed its appeal from the demand for payment.

4. By letter dated 16 September 2016, the CO rescinded the demand for

payment and stated that "we no longer intend to pursue this claim" and that the letter

does not "require any further action from DCX-Chol" (gov't mot., ex. E). The CO

requested DCX-CHOL to withdraw its appeal but stated that rescission was not

contingent on withdrawal of the appeal (id.).

DISCUSSION

When a CO unequivocally rescinds a government claim and the final decision

asserting that claim, with no evidence that action was taken in bad faith, that voluntary

action moots the appeal and leaves us without jurisdiction to entertain the appeal any

further. Combat Support Associates, ASBCA Nos. 58945, 58946, 16-1 BCA ii 36,288

at 176,973 (dismissing an appeal as moot where the CO rescinded the final decisions

asserting the government claims); KAMP Systems, Inc., ASBCA No. 54253, 09-2 BCA

ii 34, 196 at 168,995 (the CO stated there was no intention to issue a new decision).

That is the case here. The CO unequivocally rescinded the demand for payment

that is the subject of this appeal and stated that the government no longer intends to

pursue the matter (SOF ii 4). While the CO included language asking DCX-CHOL to

withdraw its appeal, the action to rescind the demand for payment was not contingent

on withdrawal of the appeal (id.). There is no evidence that the rescission was taken in

bad faith. Therefore, the CO's voluntary action moots the appeal and leaves us with

nothing to adjudicate.

CONCLUSION

For these reasons, the appeal is dismissed as moot.

Dated: 15 March 2017

Administrative Judge

Armed Services Board

of Contract Appeals

I concur

MA RICHARD SHACKLEFORD

Administrative Judge Administrative Judge

Acting Chairman Vice Chairman

Armed Services Board Armed Services Board

of Contract Appeals of Contract Appeals

2

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. 60782, Appeal ofDCX-CHOL

Enterprises, Inc., rendered in conformance with the Board's Charter.

Dated:

JEFFREY D. GARDIN

Recorder, Armed Services

Board of Contract Appeals

3

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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