FR EA
1022-00005 · Hargrove, Deluca & Stein LLP · Fact Analysis
payment-history-analysis.xlsx DOCUMENT Litigation
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Contract analysis Extract to table

[sheet: Summary]

CategoryAmount ($)Notes
MCA Total Contract Price$1,200,000,000Fixed per MCA; 65% fixed-price milestones ($780M) / 35% unit-rate ($420M)
Phase 1 Milestone Value (3,200 route miles)$208,000,000Per MCA Exhibit B — NY Metro & Northern NJ (Milestones 1–4)
Phase 2 Milestone Value (5,600 route miles)$363,000,000Per MCA Exhibit B — CT, Western MA, Southern PA (Milestones 5–8)
Phase 3 Milestone Value (9,700 route miles)$629,000,000$1.2B – $208M – $363M; MD, VA, Eastern PA (Milestones 9–14)
Total Gross Certified Work$569,666,670Sum of all approved progress payment applications across all phases
Total Retainage Held (10%)$56,966,66710% of $569,666,670 gross certified work per MCA § 18.1
Total Liquidated Damages Assessed$49,000,000Phase 1: $8.225M + Phase 2: $40.775M; aggregate cap of $60M (5% × $1.2B) not yet reached
Remaining Capacity Under Aggregate LD Cap$11,000,000$60,000,000 aggregate cap – $49,000,000 assessed = $11,000,000
Total Net Payments to Meridian$512,700,000$199.775M (Ph1) + $281.225M (Ph2) + $31.7M (Ph3)
Disputed Phase 3 Invoices (Unpaid)$16,500,000Disputed on grounds of defective work and inflated unit counts; subject of Meridian Count II
Total Amounts Held by NFA$122,466,667Retainage ($56,966,667) + LDs ($49M) + Disputed Invoices ($16.5M)
Remaining Unperformed Contract Value at Termination$630,300,000$1.2B – $569.7M; 9,360 route miles remaining of 18,500
Route Miles Completed at Termination9,140 of 18,500 (49.4%)3,200 (Ph1) + 5,600 (Ph2) + 340 (Ph3)
Contract Value Earned (Northgate Position)$569,700,000 (47.5%)Of $1.2B total contract price
Excess Completion Cost (Crestline Replacement)$81,700,000Crestline contract price ($712M) – remaining MCA value ($630.3M)

[sheet: Phase 1 Payments]

Payment App No.Application DateMilestone ReferenceDescription of WorkGross Amount Requested ($)Amount Approved ($)Retainage Withheld (10%) ($)LD Deduction ($)LD Deduction BasisNet Payment ($)Payment DateCumulative Net Paid ($)Status
PA-0012020-04-30MS-1Mobilization, survey, initial trenching — NY Metro$5,200,000$5,200,000$520,000$0N/A$4,680,0002020-05-28$4,680,000Paid
PA-0022020-05-31MS-1Directional boring & conduit installation — Manhattan/Brooklyn corridors$8,750,000$8,750,000$875,000$0N/A$7,875,0002020-06-29$12,555,000Paid
PA-0032020-06-30MS-1Underground conduit placement — Queens/Bronx corridors$10,500,000$10,500,000$1,050,000$0N/A$9,450,0002020-07-30$22,005,000Paid
PA-0042020-07-31MS-1Fiber cable pulling & initial splicing — Manhattan backbone$12,300,000$12,300,000$1,230,000$0N/A$11,070,0002020-08-28$33,075,000Paid
PA-0052020-08-31MS-1MS-1 completion — NY Metro mobilization & initial backbone (on time)$15,250,000$15,250,000$1,525,000$0N/A$13,725,0002020-09-30$46,800,000Paid
PA-0062020-09-30MS-2Underground duct bank construction — Lower Manhattan & NJ access$11,800,000$11,800,000$1,180,000$0N/A$10,620,0002020-10-30$57,420,000Paid
PA-0072020-10-31MS-2Conduit installation & vault construction — Midtown/Upper Manhattan$13,200,000$13,200,000$1,320,000$0N/A$11,880,0002020-11-30$69,300,000Paid
PA-0082020-11-30MS-2Fiber cable installation — NY Metro underground segments$14,500,000$14,500,000$1,450,000$0N/A$13,050,0002020-12-30$82,350,000Paid
PA-0092020-12-31MS-2Splicing & OTDR testing — NY Metro underground network$8,400,000$8,400,000$840,000$0N/A$7,560,0002021-01-29$89,910,000Paid
PA-0102021-01-31MS-2MS-2 completion — NY Metro underground installation (on time)$5,850,000$5,850,000$585,000$0N/A$5,265,0002021-02-28$95,175,000Paid
PA-0112021-02-28MS-3Mobilization & initial boring — Northern NJ corridor$11,600,000$11,600,000$1,160,000$0N/A$10,440,0002021-03-30$105,615,000Paid
PA-0122021-03-31MS-3Conduit & fiber installation — Newark/Jersey City segments$13,750,000$13,750,000$1,375,000$0N/A$12,375,0002021-04-30$117,990,000Paid
PA-0132021-04-30MS-3Aerial construction & pole attachments — Northern NJ rural segments$12,100,000$12,100,000$1,210,000$0N/A$10,890,0002021-05-28$128,880,000Paid
PA-0142021-05-31MS-3Underground construction — NJ Turnpike corridor crossings$14,800,000$14,800,000$1,480,000$0N/A$13,320,0002021-06-30$142,200,000Paid
PA-0152021-06-30MS-3Fiber splicing & testing — Northern NJ central segments$10,200,000$10,200,000$1,020,000$0N/A$9,180,0002021-07-30$151,380,000Paid
PA-0162021-07-31MS-3Continued splice & construction — NJ delayed segments$9,500,000$9,500,000$950,000$0N/A$8,550,0002021-08-30$159,930,000Paid
PA-0172021-10-31MS-3Final splice & testing — Northern NJ segment (MS-3 completion, 47 days late)$12,400,000$12,400,000$1,240,000$8,225,000MS-3: 47 days late (target Aug 28, 2021; actual Oct 14, 2021) × $175,000/day = $8,225,000 per MCA § 9.1; assessed via NFA letter dated Nov 5, 2021$2,935,0002021-11-30$162,865,000Paid — LD deducted
PA-0182021-12-31MS-4Phase 1 final completion, integration testing & closeout$36,910,000$36,910,000$3,691,000$0N/A$36,910,0002022-01-30$199,775,000Paid
PHASE 1 TOTALS$226,910,000$208,000,000$20,800,000$8,225,000$199,775,000$199,775,000

[sheet: Phase 2 Payments]

Payment App No.Application DateMilestone ReferenceDescription of WorkGross Amount Requested ($)Amount Approved ($)Retainage Withheld (10%) ($)LD Deduction ($)LD Deduction BasisNet Payment ($)Payment DateCumulative Net Paid — Phase 2 ($)Status
PA-0192022-01-31MS-5Mobilization & initial construction — CT corridor$11,200,000$11,200,000$1,120,000$0N/A$10,080,0002022-02-28$10,080,000Paid
PA-0202022-02-28MS-5Underground boring & conduit — Hartford/New Haven corridor$13,400,000$13,400,000$1,340,000$0N/A$12,060,0002022-03-30$22,140,000Paid
PA-0212022-03-31MS-5Fiber cable installation — CT backbone segments$14,800,000$14,800,000$1,480,000$0N/A$13,320,0002022-04-30$35,460,000Paid
PA-0222022-04-30MS-5Aerial construction & pole attachments — CT rural segments$12,600,000$12,600,000$1,260,000$0N/A$11,340,0002022-05-30$46,800,000Paid
PA-0232022-05-31MS-5Splicing & OTDR testing — CT backbone$10,900,000$10,900,000$1,090,000$0N/A$9,810,0002022-06-30$56,610,000Paid
PA-0242022-06-30MS-5Continued construction & testing — CT delayed segments$8,500,000$8,500,000$850,000$0N/A$7,650,0002022-07-30$64,260,000Paid
PA-0252022-07-31MS-5MS-5 completion — CT backbone (22 days late)$14,600,000$14,600,000$1,460,000$3,850,000MS-5: 22 days late × $175,000/day = $3,850,000 per MCA § 9.1$9,290,0002022-08-30$73,550,000Paid — LD deducted
PA-0262022-08-31MS-6Mobilization & survey — Western MA corridor$11,300,000$11,300,000$1,130,000$0N/A$10,170,0002022-09-30$83,720,000Paid
PA-0272022-09-30MS-6Underground construction — Springfield/Worcester segments$14,200,000$14,200,000$1,420,000$0N/A$12,780,0002022-10-30$96,500,000Paid
PA-0282022-10-31MS-6Aerial construction — Western MA rural corridors$13,600,000$13,600,000$1,360,000$0N/A$12,240,0002022-11-30$108,740,000Paid
PA-0292022-11-30MS-6Fiber cable pulling & splice — Western MA segments$12,500,000$12,500,000$1,250,000$0N/A$11,250,0002022-12-30$119,990,000Paid
PA-0302022-12-31MS-6Continued construction — Western MA delayed segments$10,800,000$10,800,000$1,080,000$0N/A$9,720,0002023-01-30$129,710,000Paid
PA-0312023-01-31MS-6MS-6 completion — Western MA segment (68 days late)$18,300,000$18,300,000$1,830,000$11,900,000MS-6: 68 days late × $175,000/day = $11,900,000 per MCA § 9.1$4,570,0002023-02-28$134,280,000Paid — LD deducted
PA-0322023-02-28MS-7Mobilization & initial construction — Southern PA corridor$12,800,000$12,800,000$1,280,000$0N/A$11,520,0002023-03-30$145,800,000Paid
PA-0332023-03-31MS-7Underground boring — Philadelphia suburban segments$14,100,000$14,100,000$1,410,000$0N/A$12,690,0002023-04-30$158,490,000Paid
PA-0342023-04-30MS-7Conduit & fiber installation — Southern PA corridors$13,500,000$13,500,000$1,350,000$0N/A$12,150,0002023-05-30$170,640,000Paid
PA-0352023-05-31MS-7Aerial construction — PA rural segments$11,900,000$11,900,000$1,190,000$0N/A$10,710,0002023-06-30$181,350,000Paid
PA-0362023-06-30MS-7Continued construction — Southern PA delayed routes$9,800,000$9,800,000$980,000$0N/A$8,820,0002023-07-30$190,170,000Paid
PA-0372023-07-31MS-7Splice testing & remediation — Southern PA segments$8,200,000$8,200,000$820,000$0N/A$7,380,0002023-08-30$197,550,000Paid
PA-0382023-08-31MS-7MS-7 completion — Southern PA construction (91 days late)$16,900,000$16,900,000$1,690,000$15,925,000MS-7: 91 days late × $175,000/day = $15,925,000 per MCA § 9.1$-715,0002023-09-30$196,835,000Paid — LD deducted; net credit applied to next draw
PA-0392023-09-30MS-8Mobilization & initial construction — Phase 2 final integration$12,400,000$12,400,000$1,240,000$0N/A$11,160,0002023-10-30$207,995,000Paid
PA-0402023-10-31MS-8Integration testing — CT/MA interconnect points$14,600,000$14,600,000$1,460,000$0N/A$13,140,0002023-11-30$221,135,000Paid
PA-0412023-11-30MS-8System integration — Southern PA to CT backbone$13,200,000$13,200,000$1,320,000$0N/A$11,880,0002023-12-30$233,015,000Paid
PA-0422023-12-31MS-8Continued integration & testing — Phase 2 segments$15,100,000$15,100,000$1,510,000$0N/A$13,590,0002024-01-30$246,605,000Paid
PA-0432024-01-31MS-8Ongoing MS-8 work — remediation of test failures$17,300,000$17,300,000$1,730,000$0N/A$15,570,0002024-02-29$262,175,000Paid
PA-0442024-02-29MS-8Partial MS-8 work — ongoing (not completed before termination)$13,500,000$13,500,000$1,350,000$9,100,000MS-8: 134 days accrued as of termination × $175K = $23.45M, capped at 10% of MS-8 value ($91M × 10% = $9.1M) per MCA § 9.1$3,050,0002024-03-30$265,225,000Paid — LD deducted (capped)
PA-044A2024-03-31MS-8Final Phase 2 pay application — pre-termination partial work$16,000,000$16,000,000$1,600,000$0N/A$16,000,0002024-03-30$281,225,000Paid
PHASE 2 TOTALS$345,000,000$322,000,000$32,200,000$40,775,000$281,225,000$281,225,000

[sheet: Phase 3 Payments]

Payment App No.Application DateMilestone ReferenceDescription of WorkGross Amount Requested ($)Amount Approved ($)Amount Disputed ($)Dispute BasisRetainage Withheld (10%) ($)LD Deduction ($)Net Payment ($)Payment DateCumulative Net Paid — Phase 3 ($)Status
PA-0452023-07-31MS-9Phase 3 mobilization — MD corridor, initial survey & boring$5,400,000$5,400,000$0N/A$540,000$0$4,860,0002023-08-30$4,860,000Paid
PA-0462023-08-31MS-9Conduit installation — Baltimore metro area$6,100,000$4,200,000$1,900,000Defective conduit depth per NCR reports; inflated splice closure unit counts exceeded verified field counts by 23%$420,000$0$3,780,0002023-09-30$8,640,000Partially approved; $1.9M disputed
PA-0472023-09-30MS-9Underground construction — MD I-95 corridor segments$5,900,000$4,100,000$1,800,000Splice loss exceeding specification in MD segment; improper conduit depth identified on 3,400 linear feet$410,000$0$3,690,0002023-10-30$12,330,000Partially approved; $1.8M disputed
PA-0482023-10-31MS-9Fiber cable pulling — MD/VA border crossings$5,500,000$4,000,000$1,500,000Unauthorized route deviations from approved engineering plans; inflated linear footage claims$400,000$0$3,600,0002023-11-30$15,930,000Partially approved; $1.5M disputed
PA-0492023-11-30MS-9Aerial construction — VA Northern Corridor$7,800,000$4,500,000$3,300,000Substandard aerial lashing per NS-FIBER-2020 spec; inflated pole attachment unit counts$450,000$0$4,050,0002023-12-30$19,980,000Partially approved; $3.3M disputed
PA-0502023-12-31MS-9Continued construction — MD/VA segments & splice work$5,100,000$3,500,000$1,600,000Non-conforming splice closures; field verification showed 18% quantity inflation$350,000$0$3,150,0002024-01-30$23,130,000Partially approved; $1.6M disputed
PA-0512024-01-31MS-9/10Fiber installation & testing — Eastern PA initial segments$6,800,000$3,900,000$2,900,000Critical splice loss failures; non-conforming fiber cable installation per NS-FIBER-2020$390,000$0$3,510,0002024-02-29$26,640,000Partially approved; $2.9M disputed
PA-0522024-02-29MS-9/10Continued construction — VA/MD corridors pre-termination$5,400,000$4,000,000$1,400,000Incomplete restoration work; unauthorized sub-grade materials used$400,000$0$3,600,0002024-03-30$30,240,000Partially approved; $1.4M disputed
PA-0532024-03-31MS-9/10Final pre-termination application — partial work in MD/VA$5,200,000$2,100,000$3,100,000Work rejected for non-conformance with NS-FIBER-2020; splice loss exceeding specification$210,000$0$1,890,000Not paid — Termination April 1, 2024$31,700,000Partially approved; amount unpaid due to termination
PHASE 3 TOTALS$53,200,000$35,700,000$17,500,000$3,570,000$0$32,130,000$31,700,000
PHASE 3 ADJUSTED TOTALS (per reconciliation)$48,200,000$31,700,000$16,500,000Total disputed amount = Meridian Count II claim$3,966,667$0$31,700,000$31,700,000

[sheet: Liquidated Damages Detail]

Milestone No.PhaseMilestone DescriptionMilestone Value ($)Per-Milestone LD Cap (10%) ($)Target Completion DateActual Completion DateDays of DelayLD Rate ($/day)Uncapped LD Amount ($)Cap Applied?LD Amount Assessed ($)Assessment Date / Reference
MS-1Phase 1NY Metro mobilization & initial backbone$52,000,000$5,200,0002020-08-312020-08-310$175,000$0No$0N/A — completed on time
MS-2Phase 1NY Metro underground installation$52,000,000$5,200,0002021-02-282021-02-280$175,000$0No$0N/A — completed on time
MS-3Phase 1Northern NJ construction & splice$52,000,000$5,200,0002021-08-282021-10-1447$175,000$8,225,000No (within cap)$8,225,000NFA letter dated Nov 5, 2021; deducted from PA-017
MS-4Phase 1Phase 1 final completion & testing$52,000,000$5,200,0002021-09-302021-09-300$175,000$0No$0N/A — completed on time
Phase 1PHASE 1 LD SUBTOTAL$208,000,000$20,800,00047$8,225,000$8,225,000
MS-5Phase 2CT backbone construction$91,000,000$9,100,0002022-04-302022-05-2222$175,000$3,850,000No (within cap)$3,850,000Assessed in PA-025
MS-6Phase 2Western MA fiber installation$91,000,000$9,100,0002022-10-312023-01-0768$175,000$11,900,000No (within cap)$11,900,000Assessed in PA-031
MS-7Phase 2Southern PA construction$90,000,000$9,000,0002023-03-312023-06-3091$175,000$15,925,000No (within cap)$15,925,000Assessed in PA-038
MS-8Phase 2Phase 2 final completion & integration testing$91,000,000$9,100,0002023-06-30Not completed (termination Apr 1, 2024)134 (as of termination)$175,000$23,450,000YES — capped at 10% of MS-8 value$9,100,000Capped: 134 × $175K = $23.45M exceeds $9.1M cap; assessed in PA-044
Phase 2PHASE 2 LD SUBTOTAL$363,000,000$36,300,000$55,125,000$40,775,000Cap savings: $14,350,000 on MS-8
MS-9Phase 3MD corridor construction$105,000,000$10,500,0002023-09-30Not completed (termination)N/A$175,000N/AN/A$0Not assessed — terminated before milestone completion assessed
MS-10Phase 3VA Northern Corridor construction$105,000,000$10,500,0002024-03-31Not startedN/A$175,000N/AN/A$0Not assessed — terminated before milestone due
MS-11Phase 3VA Southern Corridor construction$105,000,000$10,500,0002024-06-30Not startedN/A$175,000N/AN/A$0Not assessed — terminated before milestone due
MS-12Phase 3Eastern PA construction$105,000,000$10,500,0002024-09-30Not startedN/A$175,000N/AN/A$0Not assessed — terminated before milestone due
MS-13Phase 3Phase 3 integration & testing$104,000,000$10,400,0002024-12-31Not startedN/A$175,000N/AN/A$0Not assessed — terminated before milestone due
MS-14Phase 3Phase 3 final completion & closeout$105,000,000$10,500,0002025-03-31Not startedN/A$175,000N/AN/A$0Not assessed — terminated before milestone due
Phase 3PHASE 3 LD SUBTOTAL$629,000,000$62,900,000$0$0No milestones assessed
GRAND TOTAL LDs ASSESSED$1,200,000,000$120,000,000$63,350,000$49,000,000
Aggregate LD Cap (5% × $1.2B)$60,000,000Cap not reached; $11,000,000 remaining capacity
Aggregate Cap Reached?No$49,000,000 of $60,000,000 cap utilized (81.7%)

[sheet: Retainage Analysis]

PhaseGross Certified Work ($)Retainage Rate (%)Retainage Withheld ($)Retainage Released ($)Retainage Balance Held ($)Notes
Phase 1 (MS 1–4)$208,000,00010%$20,800,000$0$20,800,000Phase 1 completed; retainage not released due to pending NCR remediation and subsequent termination dispute
Phase 2 (MS 5–8)$322,000,00010%$32,200,000$0$32,200,000Phase 2 not fully completed (MS-8 incomplete); retainage held pending resolution
Phase 3 (MS 9–14)$39,666,67010%$3,966,667$0$3,966,667Gross certified = approved amounts on total certified basis; Phase 3 terminated April 1, 2024
TOTAL$569,666,67010%$56,966,667$0$56,966,667Full retainage balance held by NFA; subject of Meridian Count III ($56,966,667)