HD Inc.

March 24, 2025Judge Witwer

Denied / Government PrevailedEquitable Adjustment (REA)

HD Inc. appealed for an equitable adjustment of $174,874.08 due to increased costs from a revised Collective Bargaining Agreement. The Board denied HDI's motion for summary judgment and granted the Air Force's motion, remanding the matter to determine quantum.

Material Facts

The Air Force awarded Contract No. FA4830-20-C-0010 to HDI for grounds maintenance services at Moody Air Force Base, Georgia.
The contract required HDI to provide personnel, equipment, tools, supervision, and other resources necessary to maintain the base’s landscaping.
The dispute concerns Option Year Two, which ran from October 2022 through September 2023.
HDI was bound by the predecessor contractor’s CBA during the base year of the contract.
The solicitation stated that if a new CBA were negotiated, the awardee could file a Request for an Equitable Adjustment (REA) to recover any increase in wages and benefits mandated under the new CBA.
The Air Force partially granted HDI’s REA by issuing a modification to increase the contract by $21,890.90.
HDI subsequently submitted an REA requesting $174,874.08 to account for wage increases.

Parties

Appellant: HD Inc.
Respondent Agency: Department of the Air Force
Contract Number: FA4830-20-C-0010

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