Contractor-Client Receives Favorable Legal Decision for Negligent Estimate Claim Versus U.S. Army

One of the attorney-authors’ clients, a Kuwait-based contractor, recently received a favorable legal decision from the Armed Services Board of Contract Appeals (“Board”). The decision is posted here.

The Board’s decision denied a summary judgment motion by the United States Government (USG) which had sought to dismiss our client’s legal claim for negligent estimates. The decision allowed our client’s negligent estimate claim and our client’s own (pending) motion for summary judgment to proceed.

For contractors generally, the decision has expanded the types of contracts the Board recognizes to be subject to a negligent estimate claim. If you are a contractor to the USG and believe the USG’s estimates in your contract were unreasonable and financially harmed you, you should be aware of your legal rights. A contractor-rights attorney could review your particular situation and contract to see if a viable legal claim is available.

More information about our client’s case and decision is below.

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Subcontractor Files Lawsuit Against Parsons for Delay of Settlement Payment

The attorney-authors represent a subcontractor that recently filed a lawsuit against Parsons Global Services Inc.  and other Parsons entities (collectively referred to here as “Parsons”) in the Central District of California Federal Court.  Parsons was a primary contractor to the United States Government (USG) for construction work in Iraq.

The subcontractor that filed the lawsuit, Al-Marzoog Contracting Company (based in Iraq), alleges that Parsons unreasonably delayed settlement payments.  Al-Marzoog and Parsons had agreed to the settlement amounts years ago, but to date, Parsons has not paid Al-Marzoog, according to the lawsuit.

The lawsuit alleges Parsons has claimed it will not pay Al-Marzoog until the USG reviews the construction work matters and pays Parsons.  The lawsuit alleges that this “pay-when-paid” arrangement is unlawful because an unreasonable amount of time (years) has passed without payment.

For more details about the lawsuit, you can review the Complaint, posted below.

If you have a subcontractor settlement in which payment has been unreasonably delayed, please feel free to contact the blog-author attorney Vonda K. Vandaveer at vonda@vkvlaw.com or +1-202-340-1215.

Negligent Estimate Response and Reply Briefs (AGT v. U.S. Army)

The blog’s attorney authors wrote here about a contractor, AGT, which we represent before the Armed Services Board of Contract Appeals for a negligent estimate claim (and summary judgment motion) against the U.S. Army.  Here are links to the summary judgment response and reply briefs submitted thus far:

Negligent Estimate Summary Judgment Motion, AGT v. US Army

The blog’s attorney-authors represent a contractor in a case against the U.S. Army. The case is in litigation before the Armed Services Board of Contract Appeals (ASBCA), ASBCA No. 56758, Under Contract No. DABM06-03-C-0009.

The contractor we represent, American General Trading & Contracting (AGT), provided laundry services for U.S. Army soldiers in Iraq.  In the legal case, AGT alleges, among other issues, that the Army included negligent estimates in the parties’ contract that severely overestimated the amount of clothing items to be laundered.  Once the contract was performed, AGT had laundered substantially fewer laundry items than the average-item number estimated in the contract.

We recently filed a motion for summary judgment with ASBCA, trying to win the negligent estimate claim and other issues for AGT.  The summary judgment brief is below.

GAO Protest Win For Client: Army Agreed to Re-Evaluate Bids and Ordered to Pay Client Legal Fees

Some of our blog posts cover cases with contractors represented by the attorney-authors, including the case below.  The cases and articles we write serve as examples of the types of issues, settlements, awards, and verdicts obtained on behalf of our clients. The description below is not meant to explain all facets of the case, but to provide an idea of the type of contractor cases with which the attorney-authors have been involved.

 GAO Protest Win

Al Qabandi United Company; American General Trading & Contracting—Costs, B-310600.3,B-310600.4

Attorney Vandaveer obtained corrective action and attorney fees from the U.S. government on behalf of its client in Kuwait who protested the faulty award of a laundry services contract to another vendor. Ms. Vandaveer’s client, American General Trading & Contracting (AGT), along with another contractor, Al Qabandi United, filed protests involving this laundry contract, alleging the government failed to follow required bid evaluation procedures.

In response to the protests, the U.S. Army first attempted to seek dismissal, but was denied. Eventually, the Army agreed to take corrective action by re-evaluting the bids in accordance with required procedures.

Because the Army delayed taking corrective action, Ms. Vandaveer sought reimbursement from the U.S. government of her client’s attorney fees for pursuing the protest. The GAO granted the request and awarded AGT its protests costs. You can read a copy of the GAO decision here.

For more information about the legal services we provide to government contractors and subcontractors to primes, see our Legal Services page or contact us at vonda@vkvlaw.com.

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