Direct Steel, LLC

August 2, 2024Judge McLish

Denied / Government PrevailedQuantum / DamagesContract Changes / Constructive Changes

Direct Steel, LLC appealed deemed denials of two claims related to a firm-fixed-price contract with the U.S. Army Corps of Engineers for constructing a warehouse. The Board denied both claims, concluding that Direct Steel was responsible for the additional costs incurred.

Material Facts

USACE awarded Direct Steel Contract No. W9126G-21-C-0003 on December 10, 2020.
The Contract was a firm-fixed price contract for constructing a Supply Support Activity Warehouse at Fort Hood, Texas.
Direct Steel was to build the structural foundation to support a pre-engineered metal building (PEMB).
The Contract included specific criteria for the PEMB and required a licensed professional engineer to verify the foundation design.
Direct Steel incurred additional costs due to necessary revisions to the foundation design after selecting a PEMB supplier.
The government declined to issue a modification to increase the contract price for the additional foundation costs.
Direct Steel submitted claims to the contracting officer seeking equitable adjustments for additional costs incurred due to framing installation issues.
The contracting officer did not issue a decision on the claims, which were deemed denied.

Parties

Appellant: Direct Steel, LLC
Respondent Agency: U.S. Army Corps of Engineers
Contract Number: W9126G-21-C-0003

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