57980

DG21, LLC

March 3, 2015Judge Thrasher
Denied / Government PrevailedContract InterpretationDCAA Involved

DG21, LLC appealed a decision regarding increased fuel costs under a fixed-price contract with the Navy, seeking an equitable adjustment. The Board denied the appeal, affirming that the contractor bore the risk of fuel price fluctuations.

Material Facts

  • DG21, LLC contracted to provide the Navy with Base Operating Support services at Navy Support Facility/Diego Garcia.
  • The contract allowed DG21 to purchase fuel from the government at the prevailing DoD rate.
  • Fuel prices increased significantly during the contract performance, prompting DG21 to seek an equitable adjustment.
  • The contract was a firm-fixed-price contract, and the government was the only source of fuel on the island.

Parties

Appellant
DG21, LLC
Respondent Agency
Department of the Navy
Contract Number
N62742-06-D-4501
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