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Liquidated Damages Defense Required CDA Claim

A grant of summary judgment on a government counterclaim for liquidated damages was affirmed by the Court of Appeals for the Federal Circuit because the contractor's defense was a contract modification claim that did not meet the Contract Disputes Act's jurisdictional requirements. After the contractor failed to timely perform roof and window replacement work, the government assessed LDs and offset the majority of the LDs against the contract price. The contractor filed suit in the Court of Federal Claims, seeking remission of the LDs and time extensions, and the government counterclaimed for the LDs it had not recovered. The CFC granted the government's motion for summary judgment, finding the contractor "failed to establish a material issue as to whether the [LDs] provision was an unenforceable penalty," and dismissed the claim for time extensions based on the contractor's failure to submit a valid CDA claim to the contracting officer (52 CCF 79,012).




(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. )


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