PAE Aviation and Technical Services, LLC

November 21, 2025Judge Hamady

OtherStatutory ComplianceQuantum / Damages

PAE Aviation and Technical Services, LLC appealed the denial of its claim for a price adjustment under FAR 52.222-43, asserting that the government failed to provide adequate and timely notice concerning the exercise of an option and a collective bargaining agreement. On cross-motions for summary judgment, the Board denied both motions because the record was insufficiently developed to determine whether the notices complied with FAR 22.1010.

Material Facts

The Air Force awarded an indefinite quantity contract for Contract Field Team services on November 23, 2016.
The task order called for aircraft maintenance and related logistics services at Fresno Air National Guard Base and included Option Period II from June 30, 2023, to June 29, 2024.
The task order incorporated an original collective bargaining agreement effective from April 1, 2020, to March 31, 2023.
PAE and the Union entered into a 2023 CBA effective from April 1, 2023, through March 31, 2025, requiring wage increases for various job classifications.
The government gave PAE preliminary notice of its intention to exercise Option Period II on May 22, 2023.
The government separately gave the Union a May 22, 2023, notice referring to FAR 22.1010 and a forthcoming modification.
Neither May 22 notice specified a date by which the government would exercise the option or issue a bilateral contract modification extending the contract.
PAE and the government bilaterally exercised Option Period II through Modification No. P00019 on June 27, 2023.
Modification No. P00019 did not include a wage determination, was silent as to incorporation of a CBA, and lacked release language.
PAE sent the government a copy of the 2023 CBA on July 17, 2023.
The government did not dispute that PAE incurred the increase in wages and fringe benefits associated with complying with the 2023 CBA.

Parties

Appellant: PAE Aviation and Technical Services, LLC
Respondent Agency: United States Air Force
Contracting Agency: United States Air Force
Contract Number: FA8108-17-D-0012

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