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Compensation for a COVID-related Delay

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Today's main page has a link to an interesting ASBCA decision where the contractor not only received a contract extension for COVID-related delays, but was also awarded compensation for the additional costs it had to incur. A key part of the decision was to note that the contractor was not prevented from delivery of CLIN-required rental items; the pandemic required the government to use those rental items for longer than originally planned. Even though the CLIN was FFP, the contractor was entitled to be compensated for its additional costs.

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Yes, the government obtained the benefit of use of the temporary facilities during the delay period. This was, in effect, an extension to the period for the government’s occupancy and use of the rented facilities.

It wasn’t clear, but I think the claim was only for additional delay costs, not profit (even though originally submitted as a request for EQUITABLE adjustment). The contractor wasn’t asking for profit due to the delay, consistent with a Suspension of Work.

The term “equitable adjustment” usually includes an adjustment to profit or fee.

Edited by joel hoffman
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