Moore & Lee Secures ASBCA Decision in Favor of Defense Contractor
June 7, 2013
Moore & Lee recently represented a defense contractor seeking recovery for the increased price of fuel that was required for its performance under a government contract. The defense contractor was contracted with the government to produce missiles. The supply and price of the required fuel for the missiles was controlled by a separate government entity. On appeal, the ASBCA held that the contractor could recover from one government entity for the actions of a separate government entity based on the close relationship between the entities. The Board examined the relationship between the two entities and found that there was a close relationship or “significant bond” between the two such that one entity’s action to increase the price of fuel was imputed to the other. Raytheon Missile Systems, ASBCA No. 57596, 2013 WL 1313461.