57718

Martin Edwards & Associates, Inc.

May 21, 2012Judge Grant
Denied / Government PrevailedAccord & Satisfaction / Release / WaiverContract Interpretation

Martin Edwards & Associates, Inc. appealed a government motion to dismiss its breach of contract claim, which was based on a release executed during a no-cost termination for convenience. The Board denied the government's motion, allowing the appeal to proceed.

Material Facts

  • The Army awarded MEA a contract for delivery and installation of washers and dryers at Ft. Bragg, Simmons Army Airfield, and Camp Mackall, NC.
  • The contract's performance work statement specified the hours of operation for services to be performed.
  • MEA requested an extension to the 45-day phase-in period due to delays in equipment delivery, which the government initially agreed to but later retained the original phase-in period.
  • The government denied MEA's request to work weekends due to budget constraints for overtime monitoring.
  • The CO terminated the contract for cause after MEA's assurances lacked specifics.
  • MEA requested to convert the termination for cause to a no-cost termination for convenience, which was finalized via bilateral modification.
  • The no-cost termination included a broad release language from MEA.
  • MEA filed a certified claim for $850,000 for breach of contract and unlawful termination for convenience, asserting bad faith by the government.
  • The government denied MEA's claim, stating there was no bad faith in the termination.

Parties

Appellant
Martin Edwards & Associates, Inc.
Respondent Agency
Department of the Army
Contract Number
W91247-11-D-0004
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