56479

COSTAR III, LLC

August 17, 2011Judge Clarke
Partially SustainedAccord & Satisfaction / Release / Waiver

COSTAR III, LLC appealed a decision regarding the recovery of costs for health and welfare benefit payment increases under a multi-year contract. The Board denied the appeal for the base year and option years but sustained it for the final five-month extension period.

Material Facts

  • COSTAR was awarded Contract No. N62477-00-D-0085 for Base Operating Services for Naval Air Station, Patuxent River.
  • The contract included a Wage Determination requiring a health and welfare rate of $2.80 per hour worked.
  • COSTAR claimed reimbursement for increased health and welfare payments based on a Memorandum of Agreement and a subsequent addendum to a Collective Bargaining Agreement.
  • The government argued that the increases were only allowable starting with the first option year and that the claim was barred by accord and satisfaction.
  • The Board found that the claim was barred for the base year and option years but allowed it for the final five-month extension period.

Parties

Appellant
COSTAR III, LLC
Respondent Agency
Naval Facilities Engineering Command
Contract Number
N62477-00-D-0085
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