Contract Disputes

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Contract Disputes
Vanessa Bray Lee
Strayer University
BUS501-044
December 9, 2011
Dr. William Hadyn Roberts

“CONTRACT DISPUTES REACH 15-YEAR HIGH”, was the heading of an article published, December 1, 2010 in the Government Executive. The heading in itself tells us that the government is doing more and more business by contract and as a result contractors who are lobbying for government business have become more aware of their rights to file disputes when it involves a loss of potential business. Because of this increase in disputes, the government must have a method of terminating contracts without suffering the financial liabilities that could result in millions and millions of dollars going to incomplete contracts and rebids to acquire a contractor for completion of unfinished contracts. This method of termination is known as a Default Clause which will be covered later in this paper. First we will look at a case that involves a contract dispute. The GAO file number: B-215789 which involves J.C. Hester Company, Inc who was awarded contract number: F34650-81-C-0158 with the Department of the Air Force. My reason for choosing this dispute case was because it requires that the individual look at all aspects of the case in reference to Disputes. Usually dispute cases depend on more than one aspect of the FAR. This case shows that not only the contractor but the contracting officer should pay strict attention to the reasons for the dispute. In this case knowledge of the Bids Protest Process area of the FAR is also required to determine if the recommendation by the Comptroller General was indeed valid and fair.

J.C. Hester’s contract required that they modify and repair the Plating Shop Building heating system located at Tinker Air Force Base in Oklahoma. Hester’s claim was that the pump motors specified within the contract were insufficient to perform to standard and that the electrical requirements were inadequate. These claims were brought...
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