CBCA 8124

DENIED: March 25, 2025 CBCA 8124, 8137 1102 COMPANY, Appellant, v. DEPARTMENT OF HOMELAND SECURITY, Respondent. Lewis P. Rhodes of Reston Law Group LLP, Reston, VA, counsel for Appellant. H. Weston Miller and Denise McLane, Office of the General Counsel, Federal Protective Service, Department of Homeland Security, Philadelphia, PA, counsel for Respondent. VERGILIO, Board Judge. The 1102 Company (contractor) disputes decisions by a contracting officer for the Department of Homeland Security (agency) denying contractor claims to receive the full monthly prices in the contract. As initially signed, and through modifications, the contract was a firm, fixed-price contract for set monthly dollar amounts for specific numbers of hours for particular personnel positions the contractor was to provide to the agency. The contract specified the number of hours required for each position and that the contractor was only to invoice for actual hours performed. The contractor contends that the contract is a firm, fixed- price, lump sum contract under which it is to receive full payment, without regard to the hours of service provided. In two appeals, here consolidated, the contractor seeks payments under its lump sum theory, although it did not fill one position for one month, as detailed in the first appeal, and another position for three months, as detailed in the second appeal. The contracting officer denied payment for these positions unfilled for four months. CBCA 8124, 8137 2 The contract also requires contractor personnel to have security clearances. The individuals the contractor selected to fill the positions lacked clearances for the months the positions were unfilled. Separate from its “lump sum” theory, the contractor seeks payment, however, contending that it had hired the individuals who were ready to perform or performing various tasks and that the Government delayed the finalization of the clearance process. The contracting officer found no such delay and denied relief. The contractor has elected the small claims procedure, such that this decision by one judge is final, conclusive, and non-precedential and may be set aside only in the event of fraud. 41 U.S.C. § 7106(b) (2018); Rule 52 (48 CFR 6101.52 (2024)). The fixed-price contract specifies that the contractor is to invoice only the actual number of hours of performance. The “fixed” price of the contract relates to the hours required for each position and the monthly rate. The contractor does not receive the full contract price when it does not provide the number of personnel for each hour required under the contract. The contractor also contends that the agency improperly impeded the contractor from filling the two positions by taking excessive time and making errors during the security clearance process. This argument fails because the record does not establish agency impropriety. The Board denies each appeal. Findings of Fact The contract The parties entered into a contract under which the contractor provides personnel, supervision, and services necessary to perform continuous administrative support services for a base year (June 1, 2021 through May 31, 2022) with option years. Exhibit 5 at 2.1 Under the firm, fixed-price contract, the contractor is to provide services as full time equivalents at fixed monthly rates for a stated number of hours for identified positions. The contract requires full-time equivalent work days of eight hours each work day for each position. Required positions are described by title, qualifications, duties, other such information, and the number of hours to be worked. Clearances are required for the personnel here at issue. Exhibits 5 at 19; 10 at 1, 5-7, 26-28. In addition to establishing fixed monthly prices for each position, associated with a number of hours of work, the contract specifies that the contractor “is responsible for submitting accurate invoices that reflect the actual services provided each month. . . . The Contractor shall compute the invoice price to reflect the actual amount of hours performed.” Exhibit 5 at 21. 1 All exhibits are in the appeal file. CBCA 8124, 8137 3 The contract identifies security clearance requirements. Contractor personnel must complete background investigations and obtain a favorable decision permitting entry on duty prior to commencing work. Exhibits 5 at 71-73; 10 at 26-28.