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ASBCA awards contractor compensation for extra-contractual changes

August 8, 2019 By Andrew Smith

Contract changes, particularly in the construction context, can be flash points for the Government and a contractor.  In some cases, the Government will assert that the contract requires the contractor to perform certain work; the contractor, pointing to the same (or another) contractual provision, will argue that the contract does not require it.  These diverging positions can often lead to contentious litigation.

If you’ve ever found yourself in this position (or perhaps find yourself there currently), you’ll probably find a recent decision from the ASBCA, GSC Constr., Inc., ASBCA No. 59046 (July 11, 2019), illuminating.  There, the board addressed various changes that the Government allegedly made to the contract, but for which it did not compensate the contractor.  In some cases, it agreed with the contractor that compensation was owed; in one instance, it did not.

The task order, issued by the Army, required the contractor to “construct a combined Central Issue Facility . . . for permanent party troops and soldiers in Advanced Individual Training” at Ft. Sill, Oklahoma.  The task order amount was $11,951,460 and the task order incorporated the contractor’s proposal and twelve amendments.

The contractor alleged that during construction the Government required it to perform additional work beyond the contractual requirements in four different areas: a potable (domestic) water line, a fire protection loop, a sanitary sewer main, and a truck turnaround.  Let’s see how ASBCA analyzed each issue, focusing on key contract language for each.

Continue reading at:  SmallGovCon

Filed Under: Contracting Tips Tagged With: certified claim, changes, claim

Federal contractors may be able to recover costs caused by the government shutdown

January 25, 2019 By Andrew Smith

The current government shutdown is now the longest in U.S. history, and many federal contractors are incurring costs as a result of shutdown-related work stoppages and delays. Luckily, many federal contracts contain clauses that provide a potential avenue for recovery of such costs. Further, there are practical steps that contractors can take to increase their chances of recovering shutdown-related costs from the government.

What contract clauses might apply?

Several Federal Acquisition Regulation (FAR) clauses, including the following ones, could provide contractors with an avenue to recover costs incurred as a result of shutdown-related delays or work stoppages:

  • FAR 52.242-14 (Suspension of Work)
  • FAR 52.242-15 (Stop Work Order)
  • FAR 52.242-17 (Government Delay of Work)
  • FAR 52.243-2 (Changes – Cost-Reimbursement)
  • FAR 52.243-3 (Changes – Time-and-Materials or Labor-Hours)

It is very important to note that these clauses generally impose very short timeframes in which a contractor must provide the government with notice and/or assert its right to an adjustment.

Keep reading this article at: https://www.jdsupra.com/legalnews/federal-contractors-may-be-able-to-53396/

Filed Under: Contracting Tips Tagged With: actual cost, allowable costs, change order, changes, contract clauses, cost reimbursement, costs, delays, FAR, government shutdown, REA, shutdown, stop work order

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