American General Trading & Contracting, WLL

April 23, 2014Judge Melnick

Partially SustainedContract InterpretationAccord & Satisfaction / Release / Waiver

American General Trading & Contracting, WLL appealed a denial of its claim against the U.S. Army regarding a contract for laundry services, alleging negligent estimation of needs and breach of an implied-in-fact contract. The Board denied the government's motion for summary judgment on the negligent estimate claim but granted it on the implied-in-fact contract claim.

Material Facts

AGT was awarded Contract No. DABM06-03-C-0009 to provide laundry services at five military camps in Kuwait.
AGT alleges the Army negligently estimated its laundry needs, which were significantly reduced due to the invasion of Iraq.
AGT also claims it entered into an implied-in-fact contract to provide services at two additional camps, Victory and 35th Brigade.
The contract was a firm-fixed unit-priced contract with payment based on the actual number of items laundered.
AGT submitted a certified claim for KD 1,271,991, later corrected to KD 1,358,241.400, which was denied by the contracting officer.

Parties

Appellant: American General Trading & Contracting, WLL
Respondent Agency: U.S. Army
Contract Number: Contract No. DABM06-03-C-0009

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