574915749257493

International Oil Trading Company

June 22, 2012Judge Freeman
Partially SustainedContract Interpretation

International Oil Trading Company appealed the denial of claims totaling $74.7 million for fuel delivered under two contracts, seeking partial summary judgment on contract interpretation issues. The Board granted the motion in part, addressing the applicable methods for determining fuel quantity.

Material Facts

  • The government awarded IOTC Contract 0483 for delivery of fuel to military installations in Iraq on an indefinite delivery basis.
  • The contract specified fixed prices for gallons of fuel delivered and had a total estimated value at award of $456,802,652.89.
  • The Quantity Determination clause outlined methods for determining the quantity of fuel delivered.
  • Fuel was loaded into IOTC tank trucks in Jordan and weighed by customs officials.
  • IOTC prepared Fuel Delivery and Acceptance Forms for each load, which included the fuel weight and conversion to U.S. gallons.
  • The government accepted the Aqaba weighbridge measurements at the discharge sites, despite the absence of temperature compensating meters.
  • IOTC's claims for underpayment were based on discrepancies between the loaded quantities and the government-reported quantities.
  • The contracting officer denied IOTC's claims entirely in a final decision dated 17 November 2010.

Parties

Appellant
International Oil Trading Company
Respondent Agency
Defense Logistics Agency-Energy
Contracting Agency
Defense Energy Support Center
Contract Number
SP0600-07-D-0483
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