A contractor can become entitled to costs during a delay in performance. But when is a government contractor entitled to unabsorbed overhead costs during a government-caused suspension or delay? A recent Civilian Board of Contracts Appeals case answers that question in part.
Category Archives: Claims and Appeals
Claim of Bad Faith Termination by Government Requires Strong Evidence, says CBCA
An agency has broad discretion to terminate a contract for convenience. But sometimes, a contractor will challenge the termination for convenience by arguing that the agency acted in bad faith in terminating the contract.
A recent CBCA decision looks at what type of evidence is needed to establish bad faith. Not surprisingly, the CBCA confirms that the standard of proof is quite high.
At CBCA, Small Claims Procedure Nets Winning Claim for Extra Work
The Civilian Board of Contract Appeals can be used to pursue appeals of claims of all sizes. A special small claims process is available for lower-dollar appeals.
A recent CBCA decision is a good reminder of the small claims procedure available at the Board. In this case, the claimant was able to use this streamlined procedure to win an appeal of its claim for $7,272.17.
ASBCA Appeals: Contractors Prevailed In 57.6% of FY 2017 Decisions
Recently, there’s been a lot of discussion about the fact that the GAO bid protest “effectiveness rate” was a sky-high 47% in FY 2017.
But, somewhat under the radar, contractors did even better at the Armed Services Board of Contract Appeals. According to the ASBCA’s annual report, contractors prevailed (in whole or in part) in 57.6% of FY 2017 ASBCA decisions.
ASBCA: Under FAR, “Days” Meant Calendar Days, Not Business Days
The period of performance under a government contract, measured in “days,” meant calendar days–not business days, as the contractor contended.
In a recent decision, the Armed Services Board of Contract Appeals applied the FAR’s general definition of “days” in holding that a contractor had not met the contract’s performance schedule.
Government Damages Contractor’s Equipment, Board Awards Costs
When a contractor leases equipment to the government, the contractor typically expects that the government will take good care of that equipment. But a recent Armed Services Board of Contracts Appeals case reveals the government does not always take such proper care of leased goods or equipment.
What happens then? Well, the contractor may be able to recover damages under the contract and common law principles.
Release of Claims Can’t Be Undone by Refusing Government Payment
I recall sitting in a mediation one day when the mediator, a judge, told me and my client that we all have lightning in our fingers. He went on to explain that this means, once you sign a contract, it’s like magic in the sense that you can’t get out of the contract and are bound by it, absent certain exceptional circumstances.
I was reminded of this concept while reading a recent opinion from the Armed Services Board of Contract Appeals that dealt with the effect of a contractor signing a release with the government and then trying to back out of that release by refusing payment from the government.