56997

Thorington Electrical and Construction Company

December 13, 2010Judge Delman
Denied / Government PrevailedCost Allowability / Allocability (FAR 31)Contract InterpretationAccord & Satisfaction / Release / Waiver

Thorington Electrical and Construction Company appealed for reimbursement of increased material costs under a firm fixed-price contract. The Board denied the appeal, ruling that the contractor bore the risk of cost fluctuations.

Material Facts

  • The government awarded Contract No. FA3300-05-C-0015 to the appellant on 30 September 2005 for the construction of a new entry control facility.
  • The contract was a firm fixed-price contract for the amount of $825,288.
  • The contract included various standard clauses by reference, including FAR 52.243-4, Changes.
  • The appellant submitted a certified claim for $764,813, which included a sub-claim for increased asphalt costs of $110,956.
  • The contracting officer determined that the contract did not contain the Economic Price Adjustment clause and offered a compromise settlement of $26,635.83, which the appellant did not accept.

Parties

Appellant
Thorington Electrical and Construction Company
Respondent Agency
Department of the Air Force
Contracting Agency
Department of the Air Force
Contract Number
FA3300-05-C-0015
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