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Seven Seas Shipchandlers, LLC

November 26, 2012Judge Grant

Denied / Government PrevailedContract InterpretationAccord & Satisfaction / Release / WaiverCommercial Item

Seven Seas Shipchandlers, LLC appealed a denial of claims for payment under five contracts, asserting that the government failed to prove it paid an unauthorized individual. The Board denied the motion for partial summary judgment, finding material facts in dispute.

Material Facts

Seven Seas entered into five contracts with the Kandahar Regional Contracting Center between January and May 2009.
The contracts covered various commercial item products and were accepted by the government.
The first three contracts contained only the general commercial items clause, while the fourth and fifth contracts included specific payment clauses.
Seven Seas subcontracted with a local Afghan company for vehicle maintenance, and the individual who received payment was not authorized by Seven Seas.
The government paid an individual in Afghan currency, who then absconded with the funds.
Seven Seas submitted claims for payment on 1 September 2011, which were denied by the contracting officer.

Parties

Appellant: Seven Seas Shipchandlers, LLC
Respondent Agency: Department of the Army

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