1. Home
  2. |Insights
  3. |ASBCA Rules that Navy’s Desires Are Not an Option

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. 


Insights

Client Alert | 4 min read | 01.14.26

PFAS Reporting Gets Real in 2026

State regulation of PFAS-containing products will ramp up significantly in 2026. Most notably, companies will have to comply with Minnesota’s sweeping new product-reporting requirements.  As we explain below, Minnesota’s requirements cast a wide net, capturing companies that may not sell products directly into the state. This and other features of the state’s reporting program are likely to present significant compliance challenges for a wide range of businesses....