Free Exhibit to a Document - District Court of Delaware - Delaware

Case 1 :04-cv-01416-JJF Document 49 Filed 08/25/2005 Page 1 of 3
IN THE UNITED STATES BISTRICT COURT
FOR THE I}ISTR1C'I` OF BELAWARE
UNITED STATES OF AMERICA, for ) I
the Use and Benefit of JERSEY SHORE )
AUTOMATION, INC., a New Jersey )
corporation, }
)
Pleintyff ) CA. NO. {}4—t416(3.lF)
)
v. )
)
CHUGACH SUPPORT SERVICES, )
INC., an Alaska corporation, and SAFECO )
INSURANCE COMPANY OF AMERICA, )
a Washington corporation, )
}
.Defendm¢aIs, )
DECLARATION OF DARYL J. MEEHAN
l, Daryl I. Meehan, hereby declare under penalty of peijury that the facts set forth
hereiri are true arid correct of my knowledge, arid, if called as a witness, I could and
would testify competently as I set out below:
l . I am employed by Jersey Shore Automation, loc. {"Jersey Shore”) as Vice
President ofOperatio1is.
2. l have been employed by Jersey Shore sirtee Jamiary 1999.
3. Unless otherwise stated in this affidavit, I have personal knowledge of the
facts set fortli herein.
4. lwas the senior project manager for all work performed by Jersey Shore at
the Bover Air Force Base {“DAFB") wider the Master Sabeontraet
Agreement ("MSA”) with Defendant Chttgach Support Services
("Cht1g,aeh") which is the subject of this litigation.

Case 1:04-cv-01416-JJF Document 49 Filed 08/25/2005 Page 2 of 3
5. Throughout the work that Jersey Shore pertbrmed at the DAFB. Chugach
incorrectiy caicuiated wage rates by not using the Unit Price Guide, failed
to process invoices in a timeiy fashion and failed to issue change orders
and faiied to pertorm as provided by suppiemental agreements entered into
by the parties.
6. The scope of the problem is exemplified by wage rates that were required
to be paid, for example, to carpenters. By way of example and not by
limitation, the wage rate specified in the RSMEANS data for a carpenter
was $31.55. The United States Department of Labor Generai Wage
Determination DE020009 required that carpenters actually be paid at a
rate of $36.39. In addition, Jersey Shore was required to pay Workmarfs
Compensation, taxes and insurance on top ofthe carpeetefs wage making
the true cost per hour $45.01. The UPG rate for carpenters was $54.58.
Thus, for each hour a carpenter worked, the pricing was underestimated ey
SSE3.46 as a result of Cb.ugact1’s estimating errors. in fact. when
comparing the UPG rate against the RSMEANS rate the ioss was $23.03
per hour.
7. in addition, despite repeated requests, Chugach refused to provide Jersey
Shore with its estimates that were submitted to the United States
Government for the DO/"N"i"Ps to determine what was requested by
Ciiugach prior to issuance and acceptance ofthe DO!NTPs.
S. After Chugacii expanded the scope of work required under the first
DC}/NTP and failed to use the UPG in caiculating wage rates, I mer with
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Case 1:04-cv-01416-JJF Document 49 Filed 08/25/2005 Page 3 of 3
Robert Haley, representative of Chugach. The parties agreed that
_ Chugaeh would apply to the government for payment of the extra work,
correct wages under Delivery Order No. 5000, and use the correct wage
rates in all futtire DG/NTP. Jersey Shore performed work required ey
Belivery Order 5001 including the additional work and services demanded
by Chugach which were contained in the estimate provided by Chugach to
the government, but excluded from the DO/N’E“P’s to Jersey Shore.
9. Chugach again failed to utilize the UPG in measuring the wage rates for
the second DO/N'l`P, failed to submit the change orders and continued to
dernand work not included in the DO/DNP’s to iersey Shore, causing
another meeting. In September 2003, a meeting was held in Jersey
Shore’s oftices.
10. The attendees at this meeting were, Robert Hafey, Terry Wright, and
Michael Sparmdera and myself The purpose of the meeting was to
establish expressly the terms under which Jersey Shore would consider
accepting new delivery orders from Chugach to perform ·renovations on
Buildings 300, 302, 778, 781 and l2’72 at the DAFB. During the meeting,
Ciiugach and Jersey Shore expressly agreed on the cost structure of
DO/NTFS going forward. The modiiications required, among other
things, that Chugach would pay Jersey Shore a coefticient of E.02 of the
final line item on the DO/N'l`Ps.
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