Board of Contract Appeals
                 General Services Administration
                      Washington, D.C. 20405



                                                               

                  GRANTED IN PART: July 27, 2006
                                                               


                        GSBCA 16483, 16650


                GARFUNKEL DEVELOPMENT CORPORATION,

                                             Appellant,

                                v.

                 GENERAL SERVICES ADMINISTRATION,

                                             Respondent.

     Robert C. MacKichan, Jr., of Holland & Knight LLP, Washington, DC; and Kristen
E. Ittig of Holland & Knight LLP, McLean, VA, counsel for Appellant.

     Dalton F. Phillips and Amanda Wood, Office of General Counsel, General Services
Administration, Washington, DC, counsel for Respondent.

Before Board Judges DANIELS (Chairman), PARKER, and DeGRAFF.

DANIELS, Board Judge.

     Under a lease for space for a United States Customs Laboratory in Savannah, Georgia,
each party made a claim.  The General Services Administration (GSA), the lessee, claimed
$470,069.95 as the costs of correcting a heating, ventilating, and air conditioning system;
remediating mold and mildew in the facility; administrative time resulting from performance
failures; and other activities.  Garfunkel Development Corporation (GDC), the lessor,
claimed $942,306.03 in extra-contractual construction and maintenance charges and unpaid
overtime utilities.  

     The agency's claim was made in a decision issued by a GSA contracting officer. 
GDC appealed that decision, and its appeal was docketed as GSBCA 16483.  The contracting
officer failed to act on the lessor's claim.  GDC appealed from the deemed denial of that
claim, and the appeal was docketed as GSBCA 16650.

     The parties submitted both cases to alternative dispute resolution (ADR), choosing
a combination of neutral case evaluation and mediation with a Board judge serving as the
neutral.  The ADR sessions led to a settlement of the cases.  

     Later, the parties filed a stipulation for judgment.  The stipulation is that the Board
award to GDC $408,000, together with interest on that sum running from March 1, 2006, to
the date of payment.  The parties have also certified that they have not initiated and will not
initiate any proceedings at the Board for reconsideration of, or relief from, such an award;
and that they will not initiate any appeal of such an award to the United States Court of
Appeals for the Federal Circuit.

                             Decision

     The appeals are each GRANTED IN PART.  The General Services Administration
shall pay to Garfunkel Development Corporation $408,000, together with interest calculated
in accordance with the Contract Disputes Act of 1978, 41 U.S.C.   611 (2000).  Interest on
that amount shall run from March 1, 2006, to the date of payment.  Rule 136(e) (48 CFR
6101.36(e) (2005)).





                                   _________________________
                                   STEPHEN M. DANIELS
                                   Board Judge

We concur:




_________________________               _________________________
ROBERT W. PARKER                   MARTHA H. DeGRAFF
                                        Board Judge                             Board Judge