Lasmer Industries, Inc.

April 26, 2010Judge Freeman

Denied / Government PrevailedAccord & Satisfaction / Release / WaiverContract Interpretation

Lasmer Industries, Inc. appealed the deemed denial of its claim for a no-cost termination of a contract due to an alleged impossible specification. The Board denied the government's motion to dismiss the appeals.

Material Facts

The contract was an indefinite quantity contract for delivery of specified automotive parts awarded to Lasmer by the Defense Supply Center Columbus on 23 September 2002.
Lasmer delivered 700 idler arms under Delivery Order 0015, with 3,100 remaining undelivered.
An independent test agency reported that none of the idler arms passed the required endurance test.
Lasmer's contract administrator stated that the endurance test could not be met due to inadequacies in the specifications.
DSCC found that the idler arms supplied by Lasmer were non-conforming.
Lasmer was debarred from contracting with the federal government from 1 February 2005 through 31 July 2008 for shipping non-conforming parts.
Lasmer requested a no-cost termination of the contract on 22 April 2009 due to the impossible specification.
The government offered a no-cost termination on 5 November 2009, but did not acknowledge the impossible specification.
Lasmer rejected the government's offer on 24 November 2009.

Parties

Appellant: Lasmer Industries, Inc.
Respondent Agency: Defense Logistics Agency
Contracting Agency: Defense Supply Center Columbus
Contract Number: SPO750-02-D-7917

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