Government Cannot Rely on Sovereign Acts Defense to Claim for Costs of Work Performed During COVID-19 Shutdown
The Armed Services Board of Contract Appeals (“ASBCA”) recently swatted down an attempt by the U.S. Army Corps of Engineers (“USACE”) to use the sovereign acts doctrine to dodge liability for extra costs incurred during a COVID-19 shutdown. In StructSure Projects, Inc., ASBCA No. 62927 (Aug. 8, 2023), the ASBCA ruled that where the contractor provided swing space that the government used during a COVID-19 facility closure, even though the contractor was not allowed on site, the government is liable for the contractor’s costs for providing the swing space.
USACE awarded a fixed price task order to StructSure Projects to design and alter medical facilities on Travis Air Force Base. Among the CLINS was a requirement that StructSure provide swing space for the government to use while the alterations were made to the permanent facilities.
When COVID-19 struck, the government deemed… Read more
