59749

Marshall's Electric, Inc.

March 7, 2016Judge Delman
Denied / Government PrevailedTermination for DefaultSmall Business

Marshall's Electric, Inc. appealed the termination of its contract for default by the Department of the Air Force. The Board denied the appeal, finding the termination justified.

Material Facts

  • The government issued a solicitation for Repair Fire Protection/Detection Systems at F.E. Warren Air Force Base on 27 June 2013.
  • The contract included FAR 52.228-15, requiring performance and payment bonds to be furnished within 20 calendar days of award.
  • Contract No. FA4613-13-C-0011 was awarded to appellant on 25 September 2013, with a deadline to furnish bonds by 15 October 2013.
  • A federal government shutdown occurred between 1 October 2013 and 16 October 2013, impacting the processing of appellant's bond guarantees.
  • Appellant did not request the bonds until 11 November 2013, nearly one month after the bonds were required.
  • On 13 November 2013, appellant's surety denied its bond request due to outstanding claims related to another contract.
  • The contracting officer issued a notice to show cause on 24 December 2013 regarding the failure to provide bonding.
  • Appellant requested a 45-day grace period to obtain bonding, which was not granted.
  • The government issued a notice of default termination on 22 September 2014, citing appellant's failure to provide bonding.
  • Appellant filed a timely notice of appeal from the termination decision on 15 December 2014.

Parties

Appellant
Marshall's Electric, Inc.
Respondent Agency
Department of the Air Force
Contract Number
FA4613-13-C-0011
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