58768

New Iraq Ahd Company

October 17, 2014Judge James
Denied / Government PrevailedAccord & Satisfaction / Release / WaiverCommercial Item

New Iraq Ahd Company appealed a contracting officer's decision denying payment of $75,600 for lamps delivered under a government contract. The Board denied the appeal, finding no coercion in the modification of the contract price.

Material Facts

  • The contract was awarded to New Iraq Ahd Company for the purchase and delivery of furniture and other items for a total price of $369,200.
  • The contract included a line item for 700 lamps at a unit price of $12.00, totaling $84,000.
  • A contracting officer's email indicated a mistake in the pricing of the lamps, leading to a modification that changed the unit price to $120.00.
  • The contractor accepted an invoice for the lamps at the incorrect price of $12.00 per unit.
  • The contracting officer later determined that the lamps delivered were of low quality and sought to renegotiate the price.
  • A bilateral modification was executed to reduce the unit price back to $12.00, resulting in a total price of $8,400.
  • The contractor submitted an invoice for the difference between the modified price and the original price, which was denied by the contracting officer.

Parties

Appellant
New Iraq Ahd Company
Respondent Agency
Department of the Army
Contract Number
W91GY0-09-M-0051
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