59602

Watts Constructors, LLC

January 26, 2015Judge Thrasher
Denied / Government PrevailedCost Allowability / Allocability (FAR 31)Contract Interpretation

Watts Constructors, LLC appealed a decision regarding additional costs incurred due to a differing site condition under a contract with the government. The Board denied the appeal, concluding that the costs claimed were indirect and should not be reimbursed on a direct basis.

Material Facts

  • The government awarded Watts a firm-fixed price task order under Contract No. N62473-10-D-5418.
  • Watts incurred additional costs due to a differing site condition while performing work on the Sewer Lift Relocation.
  • The government acknowledged the differing site condition but stated that any work completed before a processed modification was at Watts' own risk.
  • Watts submitted cost proposals that included a percentage markup for field office overhead.
  • The government denied Watts' cost proposal, asserting that the costs should have been recovered through the percentage mark-up for field office overhead.

Parties

Appellant
Watts Constructors, LLC
Respondent Agency
Naval Facilities Engineering Command Southwest
Contract Number
N62473-10-D-5418
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