Appellant Brought a Laundry List to ASBCA But Could Not Remove the Stain of Its Fixed Price Contract

The appellant provided laundry services and sought an equitable adjustment because it cleaned more of a specific item than expected under the contract. ASBCA denied the appeal. The appellant's fixed-price contract obligated a flat rate regardless of actual volume.

Appeal of Vectrus Systems Corporation, ASBCA No. 63444

• Appeal - The appellant sought an equitable adjustment to its contract for laundry services. It claimed that it cleaned more of a specific item type than it expected from the "workload data" attached to a contract modification. It asserted the workload data was a numerical "limit" to its obligation for each item type of laundry.
• Decision - ASBCA found the appellant bore the maximum risk and full responsibility in the firm-fixed price contract. By definition, a fixed-price contract meant the appellant was required to dry clean all items for a flat fixed price. Thus, the appellant assumed the risk of its performance and was not entitled to pass the risk to the government. FAR 16.202-1. The agency showed, and the Board confirmed, that the appellant worked substantially less overall, as it did not reach the "workload data" numbers for many other laundry item types.

Joseph G. Martinez and Mikaela R. Colvin of Dentons US LLP appeared for the appellant. Caryl A. Potter, III and Christian Robertson, II of the Air Force appeared for the agency.

-- Case summary by Joshua Lim, Assistant Editor.