(DOWNLOAD) "Applied Theory Inc. v. Walker" by Federal Circuit U.S. Court of Appeals * Book PDF Kindle ePub Free
eBook details
- Title: Applied Theory Inc. v. Walker
- Author : Federal Circuit U.S. Court of Appeals
- Release Date : January 20, 1998
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 52 KB
Description
Applied Theory, Inc. (ATI) appeals from the decision of the Armed Services Board of Contract Appeals (Board) No. 49725 of 10 December 1996, which denied the appeal by ATI of its rejected claim for reimbursement of a cost overrun in a cost-reimbursement contract. On 12 February 1998, the parties were ordered to brief this court on the significance to this case, if any, of the recent opinion of this court in Titan Corp. v. West, 129 F.3d 1479, 1482 (Fed. Cir. 1997). Titan makes it clear that there will be no reimbursement for cost overruns in such a cost-reimbursement contract where the contractor reasonably "knew or should have known" that the costs would be too high, but did not notify the government - "he contractors duty to monitor its costs is accompanied by its obligation to inform the government of probable overruns before they occur," citing Advanced Materials, Inc. v. Perry, 108 F.3d 307, 310 (Fed. Cir. 1997). The Limitation of Cost clause of the contract (FAR 52.232-20) makes it clear that the contractor must give the government notice of the estimated cost overrun and then the contractor need not incur that cost unless the government expressly accepts the increased costs. The Board opinion in this case explains the Limitation of Cost clause and expressly decides that the notice here was not sufficient because it did not give the government a revised estimate. ATI raises no pertinent legal issue or fact that was not expressly and adequately addressed in the well reasoned opinion of the Board. Therefore, we are not persuaded to disturb that reasoning and we affirm the decision of the Board for the reasons set forth herein.