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:

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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.

Rely on Bad Numbers Estimated For a Contract? Consider Filing a “Negligent Estimate” Claim or Similar Legal Claim

Numbers

Numbers (Photo credit: Jon Matthies)

Some contractors and subcontractors working on U.S. Government (USG) projects discover too late that numbers quoted in the solicitation or contract were bad estimates.  Worse, a contractor in that situation may have relied on those numbers being accurate, with this reliance turning out to cause the contractor to lose money.

For example, a contractor relying on contract numbers that are overestimated may over-order supplies, and overspend on personnel and facility costs, only to learn later that such extra expenses were wasted because the scope or volume of the contract turned out to be far less than the estimates originally given. Worst of all, a contractor or subcontractor in this position may learn that the other party (USG or prime contractor) had known, or had good reason to know, that the numbers were inaccurate from the first day.

If you find yourself in a bad-estimate situation like this, and you are a contractor on a USG project, you should know there are potential legal options, including a potential legal claim for having made a “negligent estimate” on your contract scope of work.

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