61630

Parsons Government Services, Inc.

April 23, 2020Judge Melnick
Denied / Government PrevailedCost Allowability / Allocability (FAR 31)Contract InterpretationMistake / ReformationCommercial Item

Parsons Government Services, Inc. sought reimbursement from the government for settlement payments and attorney fees arising from role players' California wage claims. The Board denied the appeal, holding that the firm-fixed-price task orders, the SCA Price Adjustment Clause, and mutual-mistake principles did not entitle Parsons to recover those costs.

Material Facts

  • The Army issued task orders through an indefinite delivery, indefinite quantity contract with Parsons to provide role players for training at Fort Irwin, California.
  • The task orders were firm-fixed price and stated that personnel shall be at the specified work site for up to 13 hours per day.
  • Parsons submitted proposals stating that it would not compensate any employee for more than 13 hours on any given day.
  • The Army warned Parsons that California wage rates and overtime laws applied along with DOL wage determinations.
  • The DOL determined in the prior CALNET matter that role players onsite during 24-hour FSO duty shifts should have been paid a minimum of 13 hours of work rather than 12 hours.
  • The California appellate court in Mendiola held that California Wage Order No. 4 required compensation for all time security guards were on call, subject to an exception for sleep under specified conditions.
  • Role players employed under the task orders added Parsons as a class action defendant in lawsuits seeking compensation for 24-hour workdays based upon Mendiola.
  • Parsons settled the role players' class action suits, and the district court stated that the claims appeared strong but that whether Mendiola applied to role players remained in question.

Parties

Appellant
Parsons Government Services, Inc.
Respondent Agency
United States Army
Contracting Agency
United States Army
Contract Number
W911S0-11-D-0038
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