6197261973

U.S. Aeroteam, Inc.

August 6, 2026Judge O'Connell
Partially SustainedCost Allowability / Allocability (FAR 31)Contract Changes / Constructive ChangesDelay / Disruption / SuspensionDefective SpecificationsInspection / Acceptance / Warranty / Latent DefectsQuantum / DamagesAuthority of Government AgentsCDA JurisdictionContract InterpretationAccord & Satisfaction / Release / WaiverDCMA Involved

U.S. Aeroteam, Inc. appealed claims arising from two Air Force firm-fixed-price contracts for ground support trailers, principally seeking equitable adjustments for alleged technical-data-package defects, delay, disruption, inspection, and related costs. The Board dismissed portions for lack of jurisdiction or claim preclusion, sustained the appeals as to shoring, consultant costs, and in-house REA-preparation costs, and denied the remaining claims.

Material Facts

  • The Air Force awarded USAT two firm-fixed-price contracts for ground support trailers for C-17 Globemaster III aircraft engines.
  • The contracts placed maximum risk and full responsibility for costs and resulting profit or loss on USAT.
  • The contracts included a technical data package containing approximately 800 drawings and numerous identified parts.
  • USAT obtained running gear from PDI, later chose to manufacture the running gear itself after PDI increased its price, and experienced quality and production problems.
  • USAT previously litigated running-gear claims in the Court of Federal Claims, which ruled for the government, and the Federal Circuit affirmed.
  • USAT's later Factor 11 claims alleged interruption to production and consistent non-responsiveness arising from engineering orders and alleged technical-data-package defects.
  • USAT's Factor 11 evidence included spreadsheets and general witness testimony but did not identify the length of individual delays or reliably establish the claimed overall delay.
  • The government was responsible for obtaining carriers to transport the trailers, and carriers frequently failed to arrive or arrived with incorrect equipment.
  • USAT staged trailers for pickup and had to remove and restage them when carriers lacked suitable trucks or equipment.
  • The contracting officer had placed deliveries on hold because of recurring brake problems, causing storage and work-around costs for trailers occupying USAT's facility.
  • USAT incurred consultant and in-house labor costs in preparing and negotiating the REAs.
  • USAT omitted the required first two zeros from identification-tag serial numbers and did not produce evidence that tag replacement was economically wasteful.

Parties

Appellant
U.S. Aeroteam, Inc.
Respondent Agency
Air Force
Contracting Agency
Air Force
Contract Number
FA8526-09-C-0007; FA8526-12-C-0039
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