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ABS Development Corporation

January 7, 2019Judge McIlmail
Denied / Government PrevailedLiquidated DamagesContract Formation / Existence

ABS Development Corporation appealed several claims for additional compensation and challenged the government's assessment of liquidated damages related to a construction contract in Israel. The Board found the contract void ab initio due to misrepresentation by ABS.

Material Facts

  • The government and ABS Development Corporation contracted for construction work at an Israeli Navy shipyard for $26,956,562.
  • ABS was paid an amended contract price of approximately $46 million.
  • The solicitation restricted the procurement to United States firms only.
  • ABS represented that it would employ on-site personnel, including a project manager, but did not hire anyone for the project site.
  • All on-site work was performed by Ashtrom Group employees or subcontractors.

Parties

Appellant
ABS Development Corporation
Respondent Agency
U.S. Army Engineer District, Europe
Contract Number
W912GB-10-C-0047
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