A claim for basic ownership, operating and idle personnel costs arising from a stop work order was denied by the Civilian Board of Contract Appeals because the contractor failed to prove it would have earned more under the affected contract than it earned through replacement work, or that it incurred costs that were not offset by the income it earned through the replacement work. The stop work order was issued in response to a protest of a contract award for exclusive use of helicopters. After the government ordered the contractor to resume performance, the contractor requested an equitable adjustment for idle equipment and crew costs. According to the contractor, its cost of performing the contract was increased as a result of the stop work order, and government and non-government replacement work only covered a portion of the daily ownership/operating costs incurred during that period.
(The news featured above is a selection from the news covered in the Government Contracts Report Letter, which is published weekly and distributed to subscribers of the Government Contracts Reporter. )