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A Govt. Claim Decision May Reasonably Take 9 Months -- But No Longer

Wednesday, February 02, 2011 01:33 am


Equitable Adjustment

Appeal of: Kelly-Ryan, Inc., ASBCA No. 57168 (Nov. 29, 2010)

No matter how much money you're asking for, the government can't drag its heals when issuing a decision on a certified equitable adjustment claim.

In November 2009, contractor Kelly-Ryan, Inc. (KRI) submitted to the U.S. Army Corps of Engineers (Corps) a request for equitable adjustment in the amount of $36 million -- nearly twice the amount of the original $20 million contract. The claim was based on seven alleged government- caused breaches of contract and/or negative impacts to KRI's performance on a Corps construction project at False Pass Harbor, Alaska. The government responded that due to the claim's complexity, a decision on it would take more than a year. (It first set November 2010 as the deadline and then extended it to January 2011.) Taking this [...]

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