The appeal of Head, Inc., 2017 WL 2962587 was decided by Armed Services Board of Contract Appeals (ASBCA). The ASBCA is an impartial forum that deals with contract disputes that arise between government contractors and various federal agencies, including the Department of Defense, the National Aeronautics and Space Administration and the Central Intelligence Agency.
The ASBCA operates primarily under the Contract Disputes Act (41 U.S.C. 7101-7109) and the ASBCA Charter. All ASBCA decisions are made pursuant to procedures outlined in the ASBCA Rules. The rules include instructions for contractors to proceed without the representation of a lawyer as well as procedures for expedited hearings. The ASBCA also supports the use of Alternative Dispute Resolution (ADR) to resolve any and all disputes. The ASBCA has developed an award-winning approach to ADR, helping parties resolve their disputes effectively and efficiently.
Government Contract Dispute Background
The Department of the Army (Army) submitted a request under NAICS code 237310 for “Highway, Street, and Bridge Construction.”
After evaluating all six bids submitted electronically, the government awarded contract number W912BV-10-C-2001 to Head, Inc. (Head) on February 4, 2010. The total value of this firm-fixed-price contract was $19,032,984.
The contract called for “replacement of existing asphalt taxiway keels, widening the taxiway keel, and narrowing the existing taxiway width.” The contract also requested “mill and overlay of existing taxiway shoulders, replacement of taxiway edge lighting and airfield pavement markings.”
The contract specified Altus Air Force Base in Oklahoma as the site for performance, listing November 29, 2012 as the intended completion date. Sometime after performance began, a dispute arose concerning this contract. Head appealed to the ASBCA for review and a final determination.
The ASBCA considered the arguments from both parties as well as evidence on the record. The ASBCA also highlighted that Head and Army came to agreement on a settlement.
First, the ASBCA confirmed proper jurisdiction under 41 U.S.C. 7105(e). As 41 U.S.C. 7105(e) grants the ASBCA authority to hear contract disputes related to the Army, this case was in the proper venue.
Second, the ASBCA referenced 41 U.S.C. 7108(b), stressing that the federal government has a duty to pay out monetary damages in a timely fashion.
Ultimately, the ASBCA sustained Head’s appeal. The ASBCA also awarded Head a monetary award of $412,804. The ASBCA stressed that the monetary award already included interest.
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