57584

Servicios y Obras Isetan S.L.

April 5, 2013Judge Wilson
Denied / Government PrevailedContract InterpretationAccord & Satisfaction / Release / WaiverCDA Jurisdiction

Servicios y Obras Isetan S.L. appealed the contracting officer's decision to terminate their contract for default due to alleged fraud. The Board denied the appeal, finding the contract void ab initio due to material misrepresentations.

Material Facts

  • Servicios y Obras Isetan S.L. submitted an offer to construct a project for the Air Force and was awarded a firm fixed-price contract.
  • The contract required the appellant to furnish a Bank Letter of Guarantee within ten calendar days after contract award, which it failed to do.
  • The contracting officer issued a Letter of Concern due to the appellant's failure to commence work.
  • The appellant submitted a fraudulent Bank Letter of Guarantee and misrepresented its relationship with subcontractor Heliopol.
  • The contract was terminated for default due to the submission of a fraudulent bid bond.

Parties

Appellant
Servicios y Obras Isetan S.L.
Respondent Agency
Department of the Air Force
Contracting Agency
Department of the Air Force
Contract Number
FA5575-08-C-0008
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