61353

Fluor Federal Solutions, LLC

January 10, 2019Judge Clarke
Sustained / Appellant PrevailedContract InterpretationContract Changes / Constructive ChangesAuthority of Government AgentsEquitable Adjustment (REA)Quantum / DamagesDCAA Involved

Fluor Federal Solutions, LLC challenged the Navy's unilateral modification of an Award-Option Plan and unilateral exercise of Award Option 3. On Fluor's motion for summary judgment, the Board held that the modifications were unauthorized and unenforceable, sustained the appeal, and remanded the case to determine quantum.

Material Facts

  • The Navy awarded Fluor a contract for base operation services at four Navy installations in the Jacksonville, Florida, area.
  • The contract included a base year, four option years, and three award option years, with firm-fixed-price and indefinite-delivery, indefinite-quantity line items.
  • The contract included FAR 52.243-1, FAR 52.217-8, FAC 5252.217-9301, a Period of Performance clause, and an Award-Option Plan.
  • The Award-Option Plan required a Very Good or Exceptional end-of-period performance rating to be eligible for an award-option period.
  • The Navy rated Fluor's performance Marginal after option year 2 and Satisfactory after option year 3, and deleted award option years 1 and 2.
  • Modification No. P00187 changed the Award-Option Plan to permit a future 12-month award option based on a Satisfactory rating for the convenience of the Agency.
  • Modification No. P00193 exercised Award Option 3 for a 12-month period from July 1, 2017 through June 30, 2018.
  • The Award-Option Plan required the ODO to document the rationale for changes to the AOB's recommended rating.
  • The Navy stated that Fluor's certified claim required a DCAA audit and other independent analyses.
  • Fluor appealed to the Board based on a deemed denial of its certified claim.

Parties

Appellant
Fluor Federal Solutions, LLC
Respondent Agency
Navy
Contracting Agency
Navy
Contract Number
N69450-12-D-7582
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