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Government Claims for Excess Reprocurement Costs

Posted on June 1st, 2014 by

 

In U.S.I.A. Underwater Equipment Sales Corp, CBCA 2579 (January 27, 2014), the Civilian Board of Contract Appeals ruled that the Government had not perfected it claim for excess reprocurement costs. The Board noted that the Government must prove the following to recover such costs:

  • The reprocured supplies or services are the same as or similar to those involved in the termination;
  • The Government actually incurred excess costs; and
  • The Government acted reasonably to minimize excess costs.

Even though the Government was able to prove each of the above facts, the Board denied the claim because a Contracting Officer’s final decision had not been rendered. This is a jurisdictional prerequisite under the under the Contract Disputes Act (CDA), 41 U.S.C. §§ 7101-7109 (Supp. IV 201).

Tip: If faced with a Government Bill of Collection, ask for a Contracting Officer’s final decision. This will give you the right to contest the Government’s claim and appeal to the Board or Court of Federal Claims.

 

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