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Versar, Inc. - Armed Services Board of Contract Appeals

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(Ex. 0':180 at 9)<br />

This is a very common method <strong>of</strong>reinforcing a bar joist and is<br />

employed by most structural engineers.<br />

128. Mr. Sprague opined that submittal No. 36 did not comply with the<br />

specifications. Among other things, it indicated only one longitudinal brace, which "does<br />

not comply with any design standard for piping support including all those referenced in<br />

the contract specifications" (ex. G-180 at 9). Longitudinal sway bracing was not<br />

provided at 40-foot intervals and all runs, like the pipe and joints, did not have a<br />

minimum <strong>of</strong> one longitudinal brace, contrary to ~ 3.5.2 (id.; tr. 11/109, 111-13, 126). He<br />

did not address whether he considered the SMACNA manual to be incorporated into the<br />

specifications. He stated that SMACNA allows longitudinal bracing <strong>of</strong> up to 80 feet, but<br />

there are many caveats, and the TO clearly placed a 40-foot limit. (Ex. G-180 at 7, 11)<br />

129. Per Mr. Sprague, the Rule was the only acceptable method <strong>of</strong> installing<br />

saddle clips on wire rope; it has been well established for many years; is critical to proper<br />

performance; and is not ~imited to rigging (ex. G-180 at 14-16; tr. 11/119-20, 134-37).<br />

130. Mr. Sprague concluded that PSC's drawings and specifications were typical<br />

for such projects; they were accepted practice for performance specifications for seismic<br />

bracing, which called for an SSE; and the solicitation had enough information for a<br />

contractor to bid the design work for seismic restraints (ex. G-180 at 16; tr. 11/136). Of<br />

the two experts, we find Mr. Sprague's report and testimony to be the more persuasive.<br />

Quantum-Appellant's Claims<br />

131. The Defense <strong>Contract</strong> Audit Agency (DCAA) issued an audit report dated<br />

15 June 2010 on <strong>Versar</strong>'s claims (ex. G-175). Ofthe $2,916,461.20 claimed, DCAA<br />

questioned $8,088 <strong>of</strong> $77,000 claimed in interest penalty on unpaid invoices (it did not<br />

address $657,456 in withholdings); $1,617 <strong>of</strong>$10,059 for mold removal; $648,399 <strong>of</strong><br />

$685,720 for FCUs; $651,556 <strong>of</strong> $689,060 for seismic restraints; $4,9~7 <strong>of</strong>$17,879 for<br />

school cleanup; $379,028 <strong>of</strong>$651,501 for management and oversight; the entire $115,593<br />

for HVAC controls; and $5,295 <strong>of</strong>$12,196 for proposal preparation, for a total<br />

questioned <strong>of</strong>$I,814,513. The questioned amount did not include pr<strong>of</strong>it, which <strong>Versar</strong><br />

. claimed at 6%. DCAA noted potential questioned pr<strong>of</strong>it <strong>of</strong>$82,942. DCAA's main<br />

reasons for questioning FCU and seismic restraint costs were lack <strong>of</strong>adequate<br />

documentation and that <strong>Versar</strong> had not performed a cost analysis <strong>of</strong> JJK's claimed costs<br />

under FAR 15.408. DCAA questioned management and oversight costs because, among<br />

other things, except those for Mr. Campbell and QAlQC manager Myer, <strong>Versar</strong> had<br />

already included them in its G&A expense pool. DCAA questioned the controls costs due<br />

50

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