Fluor Intercontinental, Inc.

Material Facts

• The Corps of Engineers awarded Fluor an electrical support services multiple-award task order contract with a base one-year period and four one-year option periods.
• Fluor subcontracted with Blanchard Machinery Company to lease generators, switches, and control panels for task order requirements at an airfield in Bagram, Afghanistan.
• The Corps issued a stop-work order and later terminated Fluor's task order for convenience.
• The termination notice directed Fluor to settle subcontractor proposals and stated that reimbursement settlements would be governed by Part 49.
• The contract incorporated FAR 52.249-1 and FAR 52.249-2, and Fluor flowed down the short-form termination for convenience provision to Blanchard.
• Blanchard estimated generator and related equipment costs using five-year straight-line depreciation.
• Blanchard's proposal stated that it used Internal Revenue Service depreciable lives and a straight-line method, while the record stated that Blanchard used declining-balance depreciation for federal tax purposes and did not depreciate the equipment in its accounting records other than for tax purposes.
• DCAA questioned Blanchard's equipment depreciation, overhead, cost of money, and profit amounts in its audit of the termination settlement proposal.
• The Corps paid Fluor the amount recommended by DCAA as allowable and denied the remaining disputed amount.
• Fluor submitted Blanchard's termination settlement proposal as part of its own termination settlement proposal to the Corps.
• The record did not include sufficient evidence establishing that Fluor paid the alleged settlement amount or documenting the reasonableness of the actual costs.
• Fluor's complaint alleged a net gain from the eventual sale of the generators, but the supporting affidavit did not address that potential mitigating amount.

Parties

Appellant

Fluor Intercontinental, Inc.

Respondent Agency

United States Army Corps of Engineers

Contracting Agency

United States Army Corps of Engineers

Contract Number

W912BU-11-D-0003