Decision can facilitate recovery under fixed price service contracts

By David Hendel (February 1, 2022, 5:21 PM EST) — Contractors struggling under a fixed-price service contract now have a new theory of claims they can use to recoup service costs. surprisingly high performance.

A recent opinion of the Postal Service Board of Contract Appeals in Weber Trucking LLC v. US Postal Service breathed new life into the faulty specification theory, saying the doctrine applies to service contracts.[1] The case and its application could have broad implications for government contractors.

Weber Trucking

Weber Trucking held a fixed-price contract with the Postal Service to sort and “transport all delivered mail” along a designated route in Las Vegas, Nevada. The solicitation…

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