Appeal of -- Cenveo, Dallas Under Jacket No. 546-405

2009-7: Nov 15, 2010

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Cenveo, Dallas appeals the final decision of the contracting officer in connection with a claim arising from an order for the fabrication of a quantity of 4,950,110 envelopes under Jacket No. 546-405, Purchase Order K-4716, issued by the Government Printing Office (GPO) on behalf of the United States Department of Agriculture (USDA). The contracting officer's final decision denied Cenveo's claim for $55,338.68 associated with the remanufacture of some 3,600,500 envelopes that were found unacceptable and rejected by GPO. Final Decision of the Contracting Officer, Rule 4 File, exh. 26, at BATES 62-64. Cenveo filed an answer to the complaint and Rule 4 file on October, 14. Thereafter, the parties were afforded an opportunity to engage in discovery. Neither party sought to materially supplement the record beyong the contents of the Rule 4 file, with the exception of the addition of one (exhibit 29) by GPO, tendered by motion dated November 5.

We find that the record shows that Cenveo failed to use the specifications included in the contract to manufacture the envelopes, and that this failure resulted in the manufacture of the defective envelopes. We further find that Cenveo has failed to establish that action on the part of the government caused it to manufacture the defective envelopes, or that there is otherwise some basis to find that the government is liable for the costs associated with its manufacture of the defective envelopes. The appeal is denied.

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