63239

Vectrus Systems Corporation

January 4, 2024Judge Eyester
Partially SustainedContract InterpretationAccord & Satisfaction / Release / WaiverTermination for ConvenienceQuantum / DamagesCommercial Item

Vectrus Systems Corporation sought payment of the full amount of a task order after the Department of the Air Force de-obligated unused funds. On cross-motions for summary judgment, the Board rejected waiver and accord-and-satisfaction defenses, treated some CLINs as cost reimbursable, held another CLIN payable as modified, and found a constructive termination for convenience as to the remaining fixed-priced CLINs.

Material Facts

  • The requirements contract covered maintenance of family housing for the Kaiserslautern Military Community and included a phase-in, a base year, and four option periods.
  • The task order covered March 1, 2019 through September 30, 2019 and included 50 CLINs correlated to CLINs in the requirements contract.
  • The task order CLINs for appliances and materials identified a quantity of one and a unit of Lot, while the referenced contract CLINs were designated COST CLINs with estimated quantities and estimated costs.
  • The appliance and material PWS provisions required purchases when requested by the COR and reimbursement on actual costs incurred or invoicing under the cost reimbursement portion of the contract.
  • The over and above work provision covered work discovered during maintenance efforts, ordered by the contracting officer, negotiated by the parties, and definitized by modification.
  • The government added funding for over and above work based on contractor cost estimates through a modification to the task order.
  • The government later issued Modification No. P00005 reducing quantities and de-obligating FY 2019 excess funding.
  • Vectrus notified the government before signing that it believed it was entitled to the fixed-priced amount and later reserved rights to submit invoices and claims.
  • The modification did not contain the proposed release language when Vectrus signed it.
  • The government stated that invoices for received services and materials under the cost reimbursable CLINs had been paid.
  • The contracting officer denied the claim, citing the absence of shown unreimbursed costs for certain CLINs and missing supporting documentation for the multiple CLINs.

Parties

Appellant
Vectrus Systems Corporation
Respondent Agency
Department of the Air Force
Contracting Agency
Department of the Air Force
Contract Number
FA56513-14-D-0008
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