BAE Systems San Francisco Ship Repair

June 19, 2014Judge Ting

Denied / Government PrevailedQuantum / DamagesDCAA Involved

BAE Systems San Francisco Ship Repair appealed a decision regarding equitable adjustments for work performed under a task order contract with the Army. The Board denied BAE's motion for summary judgment, concluding that BAE failed to demonstrate the reasonableness of its claimed costs.

Material Facts

BAE Systems San Francisco Ship Repair was awarded a task order under a multiple-award, task order contract for the maintenance of a Logistics Support Vessel.
The disputes related to the equitable adjustment for the replacement of cloverleafs and the vessel's piping systems.
BAE claimed $285,101 for the cloverleaf replacement, which was verified by a DCAA audit.
The Army estimated the cost for the cloverleaf replacement at $96,157.01 and issued a unilateral modification for that amount.
DCAA's audit found no exceptions to the costs claimed by BAE but cautioned that the audit's purpose was to review quantum aspects assuming entitlement could be demonstrated.

Parties

Appellant: BAE Systems San Francisco Ship Repair
Respondent Agency: Department of the Army
Contracting Agency: U.S. Army Contracting Center, Fort Eustis, Virginia
Contract Number: W912SU-04-D-0005

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