The contractor argued the government’s acceptance of its quotation formed a binding contract. The CBCA dismissed for failure to state a claim. A quotation is not an offer and cannot be accepted to form a contract.
Beacon Point Associates LLC v. Department of Veterans Affairs, CBCA 7622
- Difference Between Quotation and Offer – The contractor alleged the government breached. The contractor’s claim, however, was premised on its assertion that the quotation it submitted in response to the solicitation was an “offer” the government had accepted. The board, however, noted under the FAR, a quotation is not an offer the government can accept. Rather, the government’s issuance of an order in response to a quotation is the offer, which the contractor can either accept or reject. Thus, the contractor’s legal theory failed to state a claim.
- Standard Form 1449 – Even if the quotation was an offer, the board noted the contractor’s argument failed. The contractor asserted the written contract, as executed, incorporated all the terms of the contractor’s quotation. The contract was executed on Standard Form 1449. The contractor said Block 29 of the form incorporated all the terms of the quotation by reference. But Block 29 stated that the contract would only contain items listed at the end of the block. Here, Block 29 was blank and thus had incorporated nothing from the quotation.
The contractor is represented by Timothy B. Hyland of Hyland Law PLLC. The government is represented by Kathleen Ramos of the Department of Veterans Affairs.
--Case summary by Craig LaChance, Senior Editor