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63403

Heart & Core LLC

January 11, 2023Judge Melnick
Denied / Government PrevailedEquitable Adjustment (REA)Small BusinessCommercial Item

Heart & Core LLC appealed the denial of its Request for Equitable Adjustment (REA) for price increases on firm-fixed price contracts due to increased costs. The Board denied the appeal, affirming the risk of cost increases was borne by the contractor.

Material Facts

  • Heart & Core LLC was awarded a requirements contract on December 5, 2017, for firm-fixed prices.
  • The government exercised all four option years of the contract.
  • On April 4, 2022, Heart & Core's CEO emailed a REA seeking a 30% price increase for comforters and a 20% increase for bathrobes.
  • The contracting officer denied the REA on June 23, 2022.
  • Heart & Core claimed a total of $36,030 in its appeal.

Parties

Appellant
Heart & Core LLC
Respondent Agency
United States Air Force
Contracting Agency
10th Contracting Squadron
Contract Number
FA7000-18-D-0004
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