6192061956

Hollymatic Corporation

March 22, 2021Judge Thrasher
Denied / Government PrevailedOtherCommercial Item

Hollymatic Corporation appealed the termination of its contract with the Defense Commissary Agency for cause, asserting that the government misrepresented the basis for the termination. The Board found that Hollymatic committed fraud in the inducement, rendering the contract void ab initio.

Material Facts

  • Hollymatic Corporation was awarded a contract to supply mixer/grinders to the Defense Commissary Agency.
  • The government terminated Hollymatic's contract for cause and sought the return of $470,668.
  • Hollymatic's initial proposal was rated technically unacceptable due to noncompliance with solicitation requirements.
  • The final proposal included representations about UL listing and NSF certification that were not accurate.
  • The dual motor model offered by Hollymatic did not exist at the time of the proposal and was still under development.

Parties

Appellant
Hollymatic Corporation
Respondent Agency
Defense Commissary Agency
Contract Number
Contract No. HDEC04-18-D-0004
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