64558

Blackstone Consulting, Inc.

July 30, 2026Judge Eyester
DismissedContract InterpretationSuperior KnowledgeCommercial Item

Blackstone Consulting, Inc. appealed the denial of a claim for German labor-law costs allegedly caused by Washington Headquarters Services' delayed disclosure that it would stop ordering services under an IDIQ contract. The Board granted the Government's motion to dismiss for failure to state a claim and dismissed the appeal with prejudice.

Material Facts

  • WHS awarded BCI an IDIQ contract for meal services and operational support at the George C. Marshall Center in Germany.
  • The contract included fixed unit-priced meal CLINs and a fixed unit-priced monthly CLIN for operational support.
  • The operational-support CLIN required BCI to furnish labor, personnel, materials, and other necessary items in accordance with the PWS and local German labor laws.
  • The contract stated that BCI was solely responsible for reporting and payment obligations under Host nation tax and labor laws.
  • The contract stated that the Government had no obligation to issue task orders except the minimum order, which was $3500.
  • The contract schedule stated an ordering period from July 1, 2024 through May 31, 2029, with a six-month option to extend.
  • WHS issued a fixed-price task order with a period of performance from July 1, 2025 through December 31, 2025.
  • WHS notified BCI that it would not exercise the second six-month option or the remaining option years.
  • BCI sought reimbursement for mandatory German statutory notice-period and termination costs.
  • The contracting officer denied BCI's claim.

Parties

Appellant
Blackstone Consulting, Inc.
Respondent Agency
Washington Headquarters Services
Contracting Agency
Washington Headquarters Services
Contract Number
HQ0847-24-D-0001
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