63235

Herman JCG Co. JV¹

May 9, 2024Judge Arnett
Sustained / Appellant PrevailedContract Changes / Constructive Changes

Herman JCG Co. JV appealed a decision regarding its entitlement to share in savings from a Value Engineering Change Proposal (VECP) related to a Navy construction contract. The Board sustained the appeal, finding that the government constructively accepted the VECP.

Material Facts

  • The Navy awarded an Indefinite Delivery Indefinite Quantity Multiple Award Construction Contract to Herman on October 25, 2017.
  • Herman proposed phasing the project instead of using temporary trailers on October 21, 2019.
  • The Navy conditionally accepted the phasing proposal on November 4, 2019, subject to certain conditions.
  • Herman submitted a Notice of Value Engineering Change Proposal on August 7, 2020, asserting its proposal was a VECP.
  • The contracting officer rejected Herman's VECP on September 8, 2020, but executed Modification No. P00002 the following day, incorporating the phasing plan into the contract.

Parties

Appellant
Herman JCG Co. JV
Respondent Agency
Department of the Navy
Contract Number
N62473-18-D-5822
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