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Government Required to Provide Security Escorts
The terms of a fuel delivery contract required the government to provide
security escorts for the recovery of abandoned tanker trucks, according to the
Armed Services Board of Contract Appeals, because the contract language and the
parties' actions indicated the word "convoys" included recovery
convoys. A truck transportation service contract for delivery of fuel oil to
various locations in southern Iraq from loading facilities in Kuwait obligated
the government to "provide security escort to convoys." The contractor
sought relief for losses incurred as a result of government delays in arranging
security escorts to recover its abandoned tanker trucks. The government argued
the contract did not apply to "disabled vehicle recovery missions."
No Limitations
However, the provision addressing convoy security did not "place any
limitation upon the kinds of convoys for which security was to be
provided." To the extent there was any latent ambiguity as to the meaning
of "convoys," it was to be construed against the government under the
rule of contra proferentum, as the contractor relied on its
interpretation during bid preparation. Further, where there is an ambiguity,
extrinsic evidence is permissible to determine the parties' intent. Here, the
parties' contemporaneous actions during performance were consistent with the
contractor's interpretation that the government would provide security escorts
for all convoys. In addition, contrary to the government's contention, the
contract's Risk of Loss clause addressed only the risk of loss of fuel, not the
risk of equipment loss. The board granted summary judgment to the contractor as
to the contract interpretation issue. (Altanmia Commercial Marketing Co.,
ASBCA, ¶92,529)
(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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