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ASBCA Rules that Navy’s Desires Are Not an Option

Client Alert | 1 min read | 02.13.19

In Fluor Federal Solutions (Jan. 10, 2019), the ASBCA agreed with Fluor that the Navy erroneously modified the terms of a contract option and granted summary judgment to Fluor. The Navy argued that it had the right to make the modification, which reduced the amount it paid for services Fluor provided at four military bases for the option year. The Board concluded the modification could only be made with proper documentation of the rationale behind the change. As the Navy failed to provide such documentation, the Board held that the modification to exercise the option was “unenforceable” (as opposed to a “defective” option). The ASBCA awarded Fluor $14.8 million, the difference between Fluor’s estimate of its costs to perform the modification (plus reasonable profit) and the amount the Navy awarded for the contact option. Fluor’s estimate was based on its actual costs to perform the contract in the prior year. 


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Client Alert | 3 min read | 09.13.24

SEC Disbands its Climate and ESG Enforcement Task Force

The Securities and Exchange Commission (SEC) has reportedly recently dissolved its Climate and ESG Enforcement Task Force (the Task Force). The Task Force was part of SEC Chair Gary Gensler’s broader push to increase investors’ access to environmental, social, and governance (“ESG”) information about public companies and registered investment companies. The dissolution of the Climate and ESG Enforcement Task Force comes after three years marked by industry resistance and a mixed record in the courts. Prior to the Task Force’s dissolution, the agency removed ESG from its annual Examination Priorities Report, which provides areas of particular focus during SEC examinations. While the Task Force has been dissolved, the SEC is still pursuing a number of its proposed ESG and climate-related rules....