Federal Circuit Remands NAFI Contractor Back to ASBCA for Further Damages Findings
Client Alert | 1 min read | 06.04.14
In SUFI Network Servs., Inc., v. U.S. (May 29, 2014), the Federal Circuit vacated and remanded a $114 million award granted by the Court of Federal Claims to SUFI in its appeal of the ASBCA's damages determinations on several breach of contract claims brought in the aftermath of a telephone services contract with the Air Force's Non-Appropriated Fund Purchasing Office. The court found that the CFC correctly found error in several of the ASBCA's legal and factual findings concerning SUFI's damages, but it ruled that the CFC was not itself permitted to recalculate them under Wunderlich Act review and instructed the ASBCA to reconsider whether SUFI's calculations provided a fair and reasonable approximation of its losses (as the CFC had held) and recompute the lost profits owed.
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Recent sustain decisions by the U.S. Government Accountability Office (GAO) in Fluor Federal Solutions, LLC and Reliance Test & Technology send a clear message: when an agency tries to fix a Procurement Integrity Act (PIA) violation by committing a second one, the cure can be just as fatal as the disease. The cases involved the U.S. Air Force’s $1.8 billion procurement for O&M services at Elgin Air Force Base. During discussions, the Air Force inadvertently released a pricing overview slide with all offerors’ bottom-line evaluated costs to Reliance Test & Technology, which immediately notified the agency of the error. In response, the Air Force decided to level the playing field by providing the same information to all the other offerors in the procurement, stating, “[o]fferors may consider this disclosure in their [final proposal revision].”
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