Board of Contract Appeals General Services Administration Washington, D.C. 20405 _________________________ GRANTED: June 20, 2000 __________________________ GSBCA 12961-REM HERMAN B. TAYLOR CONSTRUCTION CO., Appellant, v. GENERAL SERVICES ADMINISTRATION, Respondent. Christina Stone of Gaughan & Stone, Houston, TX, counsel for Appellant. Sharon J. Chen, Office of General Counsel, General Services Administration, Washington, DC, counsel for Respondent. Before Board Judges BORWICK, NEILL, and HYATT. BORWICK, Board Judge. This appeal involves respondent General Services Administration's (GSA's) termination for default of a contract for the renovation of the United States Courthouse and Post Office Building, Galveston, Texas. The contract contained the standard form Termination for Convenience and Default clauses. See Appeal File, Exhibit 1, GSA Form 3506 at 41 ( 98(d), (f)(1)(i)--FAR 52.249-2--TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (Fixed Price)(Alternate 1) (APR 1984)) ,43 ( 99(e)-- FAR 52.249-10-DEFAULT (FIXED PRICE CONSTRUCTION) (APR 1984)). In Herman B. Taylor Construction Co. v. General Services Administration, GSBCA 12961, 98-2 BCA 29,833, rev'd in part sub nom. Herman B. Taylor Construction Co. v. Barram, 203 F.3d 808 (Fed. Cir. 2000), the Board rejected all of GSA's grounds for terminating the contract for default save for alleged violations of the Davis-Bacon Act. The Department of Labor had entered into a consent decree regarding alleged Davis-Bacon Act violations. The United States Court of Appeals for the Federal Circuit concluded that under the Federal Acquisition Regulation, disputes arising out of labor standards provisions of contracts are not subject to the Contract Disputes Act, but are to be resolved in accordance with the procedures of the Department of Labor. The Court stated that a board of contract appeals must accept the Department of Labor's adjudication of such a dispute and that a board has no jurisdiction itself to determine a labor provisions dispute or to review the Department of Labor's ruling on such a dispute. Herman B. Taylor Construction Co. v. Barram, 203 F.3d at 811. The Court ruled that the consent decree entered by the Department of Labor could not be construed as a final adjudication of Davis-Bacon Act violations by the appellant that would enable the Board to sustain the termination. Id. at 813. The Court therefore reversed the Board's decision sustaining the termination for default based on alleged Davis-Bacon Act violations. Id. at 815. Since the Board and the Court of Appeals have rejected respondent's reasons for terminating the contract for default, the Board grants the appeal. In accordance with the contract's Default clause, the default termination shall be converted to a termination for the convenience of the Government. Decision The appeal is GRANTED. Respondent's termination for default is reversed and the termination for default is converted to a termination for the convenience of the Government. __________________________ ANTHONY S. BORWICK Board Judge We concur: __________________________ ____________________________ EDWIN B. NEILL CATHERINE B. HYATT Board Judge Board Judge