59892

Palco Distributing, LLC

October 22, 2015Judge Paul
Denied / Government PrevailedContract InterpretationAccord & Satisfaction / Release / Waiver

Palco Distributing, LLC appealed the cancellation of its purchase order by the Navy for piston/sleeve assemblies. The Board denied the appeal, affirming the cancellation was justified.

Material Facts

  • The Navy issued a request for quotations (RFQ) for 20 piston/sleeve assemblies on 29 October 2014.
  • The RFQ specified that the assemblies had to be manufactured by Bauer Compressors, Inc. and had to bear Bauer part number 078043.
  • Palco submitted the lowest bid offering to supply the required assemblies for $6,736.20.
  • The Navy rejected Palco's shipment on 19 November 2014 because the items were not what was ordered.
  • Palco shipped parts manufactured by Lawrence Factor instead of the required Bauer assemblies.
  • The Navy determined that the Lawrence Factor parts were not suitable for use in the emergency breathing air compressors.
  • Palco sent an unsolicited quote to provide the Bauer assemblies for a total price of $8,533.22, which the Navy did not accept.
  • The Navy issued a unilateral modification cancelling the purchase order at no cost to either party on 4 February 2015.

Parties

Appellant
Palco Distributing, LLC
Respondent Agency
Navy
Contracting Agency
Naval Surface Warfare Center
Contract Number
N61331-15-P-8502
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