Medical Receivables Solutions, Inc.

July 15, 2025Judge Wilson

Denied / Government PrevailedTermination for ConvenienceContract Formation / ExistenceAccord & Satisfaction / Release / WaiverCommercial ItemAI Citation Misuse

Medical Receivables Solutions, Inc. appealed a contracting officer's final decision regarding its termination settlement proposal, which the Army denied based on a release of claims. The Board granted the Army's motion for summary judgment, denying the appeal.

Material Facts

The Army awarded MRS Contract No. W91YTZ-23-C-0018 for medical coding services effective October 1, 2023.
The contract was a firm fixed price contract with a one-year base period and four option periods.
The contract incorporated FAR 52.212-4, which allows the government to terminate the contract for its convenience.
MRS did not submit required materials as per the contract's performance work statement.
The Army terminated the contract for convenience on December 12, 2023, and issued a modification that included a release of claims.
MRS did not execute the modification but demanded reimbursement for incurred costs.
MRS submitted a termination settlement proposal seeking $44,559.80, which was later revised to $38,875.80.
The contracting officer issued a final decision awarding MRS $9,418 for preparatory costs incurred.

Parties

Appellant: Medical Receivables Solutions, Inc.
Respondent Agency: Department of the Army
Contract Number: W91YTZ-23-C-0018

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