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 (“ASBCAâ€) recently swatted down an attempt by the U.S. Army Corps of Engineers (“USACEâ€) 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
