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Contract Administration Was Not Claim Preparation Claims Administration

Sunday, February 02, 2003 12:36 pm


The Armed Services Board of Contract Appeals has ruled that a contractor was attempting to resolve disagreements without litigation, not promoting the prosecution of a formal claim. The efforts were therefore allowable costs of contract administration, not unallowable costs of claim preparation, even though a claim later resulted.

The Army Corps of Engineers awarded a fixed-price contract to American Mechanical, Inc. (AMI) to provide a new computer control system for the water treatment plant at Fort Richardson, Alaska. AMI subcontracted the instrumentation and other work to Phoenix Control Systems, Inc. (PCSI).

AMI presented the contracting officer [...]

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