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An 'Option' Is Not A Contractual Promise

Sunday, April 01, 2012 02:16 am

 

Contracts

The NASCENT Group, JV v. U.S., 2012 U.S. Ct. Fed. Cl. Lexis 19 (Jan. 18, 2012)

Although a government contract priced out "optional items," it did not guarantee that the contractor could perform and be paid for them.

The Army Corps of Engineers (Corps) contracted with NASCENT Group Joint Venture (NASCENT) to construct a border control station at Blaine, Washington. However, NASCENT claimed it had also been awarded a contract to construct a second border control station at Lynden, Washington and had priced the Blaine project with this understanding. The question before the court was whether an unambiguous contract existed for one project or two.

NASCENT alleged that a contract for both projects consisted of a March 11, 2004 e-mail offer from the Corps and a March 16, 2004 facsimile acceptance from NASCENT. However, in the March 11 e-mail, the Corps instructed NASCENT to provide a revised bid schedule "per the RFP" and to consider the Blain project schedule as [...]

 
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