Government Contracts Monitor

ASBCA Makes Government Play by Same Rules as Contractors

March 25, 2013

In responding to contractor claims, the government often raises as a defense the contractor’s failure to first bring a particular issue or claim before the contracting officer.  So it was quite refreshing when, in the recent case of Appeal of Lockheed Martin Services, Inc., ASBCA No. 58028 (Feb. 20, 2013), the Armed Services Board of Contract Appeal (ASBCA) denied the government’s motion for summary judgment on the ground that the contracting officer had never considered the issue.

Lockheed had appealed after the contracting officer issued a final decision denying a requested increase in a software license price.  In response, the government moved for partial summary judgment demanding the return of the license fee it paid.  The Board, however, held that it lacked jurisdiction over the issue because the contracting officer had never demanded the return of any part of the license payment.  The decision is an excellent reminder that the government must play by the same rules as contractors when it asserts counterclaims.

 

Jeffry Cook is the attorney responsible for the content of this article.