5687056957

General Dynamics Ordnance and Tactical Systems, Inc.

May 26, 2011Judge Delman
Denied / Government PrevailedContract InterpretationEquitable Adjustment (REA)Quantum / Damages

General Dynamics Ordnance and Tactical Systems, Inc. sought an equitable adjustment based on allegedly inaccurate or negligently prepared quantity estimates for small munitions orders. The Board denied the Government's motion for summary judgment because the record presented unresolved issues concerning whether the arrangement was a basic ordering agreement or a requirements contract and whether the Government's estimates were negligently prepared.

Material Facts

  • The issued solicitation replaced express references to a requirements contract with references to a basic ordering agreement.
  • The solicitation retained FAR 52.216-18, FAR 52.216-19, and estimated-quantity provisions commonly associated with requirements contracts.
  • The solicitation did not include the FAR clause identified as applicable when a requirements contract is contemplated.
  • The solicitation and award document did not include all provisions the decision identified as required for a basic ordering agreement.
  • The award document referred to the arrangement as both a basic ordering agreement and a contract.
  • The Government issued delivery orders for small caliber ammunition, and the appellant accepted and performed under those orders.
  • The Government did not obtain competition before issuing the delivery orders and did not seek or allow price negotiation before issuing them.
  • The appellant's claim alleged that the Government provided no projected quantities beyond the first year and that later quantities caused increased performance costs.
  • The Government refused to disclose documents allegedly used to develop the quantity estimates, asserting that disclosure would violate the Trade Secrets Act.

Parties

Appellant
General Dynamics Ordnance and Tactical Systems, Inc.
Respondent Agency
Department of the Army
Contracting Agency
Department of the Army
Contract Number
W52PIJ-05-G-0002
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