{"id":899462,"date":"2022-01-05T13:39:55","date_gmt":"2022-01-05T20:39:55","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=899462"},"modified":"2022-01-05T13:39:57","modified_gmt":"2022-01-05T20:39:57","slug":"equivalent-substitute-unreasonably-refuses","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/equivalent-substitute-unreasonably-refuses\/","title":{"rendered":"Board Rules Contractor Entitled to Additional Costs After Government Unreasonably Refuses to Accept Equivalent Substitute"},"content":{"rendered":"\n<p>Sabah Petrov | <a href=\"https:\/\/www.bradley.com\/insights\/publications\/2021\/12\/board-rules-contractor-entitled-to-additional\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Bradley<\/a><\/p>\n\n\n\n<p>In\u00a0<em>Appeal of Carothers Constr., Inc.<\/em>, the Armed Services Board of Contract Appeals (the \u201cBoard\u201d) rejected the Government\u2019s reliance on strict compliance with the material specifications for a 2 1\/2\u2033 thick roof deck product when the contractor proved the substitute 2\u2033 thick roof deck was equivalent. While generally, the owner is entitled to strict compliance with its plans and specifications, this rule does not apply when the contractor is permitted to submit a functionally <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/contractor-cant-recover-for-claim-based-brand-name-products\/\" target=\"_blank\" rel=\"noreferrer noopener\">equivalent substitute<\/a> for a proprietary item that is specified in the contract documents.<\/p>\n\n\n\n<p>On December 15, 2015, the United States Air Force issued a solicitation for the phased replacement of elementary\/middle school at an air force base. The solicitation included FAR 52.236-5, the Material and Workmanship clause. As part of the phased construction of the school, the contract included a 2 1\/2\u2033 thick acoustical roof deck for the roof system over the gymnasium and performance area of the school. From its investigation, Carothers Construction, Inc. (\u201cCarothers\u201d) found that only one manufacturer, Epic Metals made a roof deck that was 2 1\/2\u2033, which was the Toris A roof deck product. Carothers\u2019s investigation also showed that the 2\u2033 Versa-Deck product was equal to the Toris\/Epic Metal product. Accordingly, Carothers bid the subject contract with the expectation it would use the Versa-Deck roof system.&nbsp; The Government awarded the contract to Carothers.<\/p>\n\n\n\n<p>During the course of the project, Carothers submitted an RFI (\u201cRequest for Information\u201d) seeking approval of the 2\u2033 Versa-Deck as a suitable alternative to the 2 1\/2\u2033 Toris A (Epic Metals Corporation). The Government rejected the proposed alternative. Despite the fact that the contractor showed that the 2\u2033 Versa-Deck met or exceeded the span\/load and noise reduction requirements in the contract and was therefore an acceptable substitution for the specified roof system product, the Government would not budge on its insistence on the 2 1\/2\u2033 roof deck. The contractor then provided the proprietary deck and submitted a certified claim seeking its additional costs. The Government denied the claim for additional compensation, which the contractor appealed to the Board contending that the 2 1\/2\u2033 roof deck specification was proprietary and under the Material and Workmanship clause, the contractor was permitted to submit the 2\u2033 Versa-Deck product as a functional equivalent. The Government argued that it should be entitled to strict compliance and it would only consider the 2\u2033 Versa-Deck as a variation to the contract specifications.<\/p>\n\n\n\n<p>The Board rejected the Government\u2019s insistence on the 2 1\/2\u2033 roof deck and held that the contractor was entitled to substitute the 2&#8243; deck pursuant to pursuant to FAR 52.236- 5, the Material and Workmanship clause. A contractor is permitted to furnish a functionally equivalent item when it can show: (1) the specifications are proprietary; (2) the contractor submitted a substitute product along with sufficient information for the contracting officer to make an evaluation of the substitute; and (3) the proposed substitute meets the standard of quality represented by the specifications.<\/p>\n\n\n\n<p>In this case, the contractor was able to prove the 2 1\/2\u2033 roof deck was proprietary because it found only one vendor that manufactured such a roof deck, and the government was unable to rebut this finding by showing that it could be obtained from more than one source. The Board explained the contractor had a right to propose an equal substitute because the inclusion of the FAR 52.236- 5, Material and Workmanship clause qualifies the general rule that the Government is entitled to strict compliance with every technical requirement of the contract. The contractor was also required to prove that the Contracting Officer\u2019s refusal to consider the equivalency of the proposed substitute was an \u201cunreasonable exercise of judgment.\u201d The Board found that Carothers provided sufficient documentation to the Contracting Officer, including technical findings of a third-party structural engineer retained to evaluate the equivalency of the proposed alternative showing that the 2\u2033 deck was equal in quality and performance to the roof deck specified in the contract. However, the record reflected that the Government never evaluated the side-by-side comparisons of the 2\u2033 deck and 2 1\/2\u2033 roof deck submitted by the contractor, and seemingly ignored the third-party engineer\u2019s equivalency determination. Accordingly, the Board held that the Government\u2019s insistence on the 2 1\/2\u2033 roof deck was an unreasonable exercise of judgment given all of the documentation evidencing that the 2\u2033 deck was equal in quality.<\/p>\n\n\n\n<p>Although the Government can generally demand strict compliance with the contractual specifications, this case explains that if a contract includes FAR 52.236-5, the Material and Workmanship clause, then the contractor is permitted to propose an equal substitute. However, contractors should bear in mind that it is their burden to prove equivalency of the proposed alternative to the Government.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sabah Petrov | Bradley In\u00a0Appeal of Carothers Constr., Inc., the Armed Services Board of Contract Appeals (the \u201cBoard\u201d) rejected the Government\u2019s reliance on strict compliance with the material specifications for a 2 1\/2\u2033 thick roof deck product when the contractor proved the substitute 2\u2033 thick roof deck was equivalent. While generally, the owner is entitled&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/equivalent-substitute-unreasonably-refuses\/\">Continue reading <span class=\"screen-reader-text\">Board Rules Contractor Entitled to Additional Costs After Government Unreasonably Refuses to Accept Equivalent Substitute<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[14,10918],"tags":[9895,11606],"class_list":["post-899462","post","type-post","status-publish","format-standard","hentry","category-construction-2","category-product-liability-product-liability","tag-advise-consult","tag-equivalent-substitute","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Board Rules Contractor Entitled to Additional Costs After Government Unreasonably Refuses to Accept Equivalent Substitute - Advise &amp; 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