Weird Sightings Construction Company, Inc. (WSCC) entered into a contract, DOD 20-321-ENG-5151, with the Corps of Engineers on March 15, 2020. The contract involved construction of 18 dormitories, five mess halls and three bachelor officers' quarters. The total contract price was $4,867,605.30.

The buildings were to be constructed of concrete building block with exposed surfaces "of a fine texture generally produced in the Nevada area which is suitable for painting as distinguished from `coarse textured block' produced for the purpose of receiving stucco or plaster.

WSCC placed an order for suitable block with a supplier. Subsequently, on or about May 4, 2020 the contracting officer rejected the concrete block submitted by WSCC and required the use of a "sand block." WSCC then requested additional compensation in the amount of $312,016.60 to defray alleged additional costs. The matter was processed and Modifications Nos. 45 and 46, dated May 13, 2020, and May 24, 2020, respectively, were issued. These Modifications allowed plaintiffs $125,624.39 to compensate them for the cost of additional labor required in handling and placing the block, and for handling and hauling the rejected block. WSCC’s' claim of $42,415.98 for the alleged additional value of the sand block over and above the value of the originally specified block was denied by the contracting officer and, ultimately, by the Armed Services Board of Contract Appeals.

Though the price which plaintiffs actually paid for the "sand block" was the same as they would have paid for the original block selected, WSCC contends that the fair market value of the sand block was greater than the purchase price. Essentially then, WSCC argues that the government should not benefit from the bargain price WSCC secured from their supplier but should pay for the actual value of the sand block received by defendant, not merely its actual cost.

What is the appropriate equitable adjustment that WSCC is entitled to under the above circumstances?

Answer rating: 100% (QA)

ANSWER An equitable adjustment in government contracting is a contract adjustment pursuant to a chan... View the full answer