EJB Facilities Services

March 8, 2012Judge Tunks

Denied / Government PrevailedContract InterpretationAccord & Satisfaction / Release / Waiver

EJB Facilities Services appealed a decision regarding a deduction for deleted work under a Navy contract, claiming improper calculation of the deduction. The Board denied both parties' motions for summary judgment due to disputed material facts.

Material Facts

The Navy issued Request for Proposals (RFP) No. N44255-04-R-0003 for a combination firm fixed-price/indefinite-quantity contract.
The contract was awarded to EJB in the amount of $405,270,351.64.
The contract incorporated FAR 52.233-1, DISPUTES and FAR 52.243-1, CHANGES-FIXED-PRICE by reference.
The Navy requested EJB to submit a proposal for deleting Annex 1000000 (Supply) in its entirety.
EJB proposed a price reduction of $331,137.92 based on its actual historical costs.
The contracting officer issued unilateral Modification No. A00049, deleting Annex 1000000 and reducing the contract price by $1,375,833.80.
EJB submitted a claim to the contracting officer requesting an adjustment of Modification No. A00049.
The contracting officer denied the claim, stating the proper measure of a downward adjustment was the contract item price.

Parties

Appellant: EJB Facilities Services
Respondent Agency: Department of the Navy
Contract Number: N44255-05-D-5103

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