Fluor Federal Solutions, LLC

Material Facts

• The contract provided regional base operations support at four Naval installations in the Jacksonville, Florida area.
• The contract included a firm-fixed-price CLIN 11 and an IDIQ CLIN 12.
• The Navy unilaterally exercised award option year 3 after modifying the award option plan.
• Fluor performed CLIN 11 during the invalid option year while the Navy disputed its payment obligations.
• DCAA questioned $481,862 of Fluor’s claimed incurred costs, while the Navy otherwise accepted the methodology for determining claimed incurred costs.
• Fluor supported the questioned costs with accounting-system evidence, source documents, testimony, and proof of payment.
• The parties had negotiated a seven percent profit rate for firm-fixed-price modifications.
• The Navy delayed payment of invoices and did not pay all invoices in full during performance.
• Fluor’s legal services costs were limited to contract administration rather than claim prosecution.
• Fluor directly allocated corporate reachback services to CLIN 11 and provided timekeeping and payment evidence.
• The arbitration award and settlement were issued or executed and paid during the invalid option year.
• The Navy provided only a brief and unsupported explanation for its proposed “Costs to Recoup” deduction.

Parties

Appellant

Fluor Federal Solutions, LLC

Respondent Agency

Department of the Navy

Contracting Agency

Naval Facilities Command (NAVFAC) Southeast

Contract Number

N69450-12-D-7852