CBCA 8422

DENIED: September 16, 2025 CBCA 8422 CADUCEUS HEALTHCARE, INC., Appellant, v. DEPARTMENT OF HEALTH AND HUMAN SERVICES, Respondent. Veronica Beuther, Vice President of Caduceus Healthcare, Inc., Marietta, GA, appearing for Appellant. Jared C. Bruff and Jorge I. Correa, Office of the General Counsel, Department of Health and Human Services, Atlanta, GA, counsel for Respondent. BEARDSLEY, Board Judge (Chair). Appellant, Caduceus Healthcare, Inc. (Caduceus), appeals the contracting officer’s (CO) final decision to deny payment in the amount of $146,583.14 for services rendered because Caduceus exceeded the contract’s ceiling price without giving advance notice to the Government. Caduceus has elected expedited, non-precedential disposition of this appeal by a single board judge under the small claims procedure in Board Rule 52 (48 CFR 6101.52 (2024)). The parties have agreed to a decision on the written record, without a hearing, pursuant to Board Rule 19. For the foregoing reasons, the Board denies the appeal. CBCA 8422 2 Background On September 10, 2020, the Department of Health and Human Services (HHS) established a multiple-award blanket purchase agreement (BPA) under the General Services Administration (GSA) Services Schedule for the Centers for Disease Control and Prevention (CDC) Division of Global Migration and Quarantine (DGMQ). Exhibit 2.1 The CDC sought out contractors to “provide programmatic support for preparedness and entry screening operation” during emergency response operational activities. Id. at 4. In 2022, the CDC issued task order 75D30122F15065 under the BPA for DGMQ Surge Support Emergency Response Operations to Caduceus. Exhibit 7 at 1, 29. The task order listed the contract line item number (CLIN) for each service provided along with a ceiling price and description. Id. at 2-18. CLINs were listed for the base period as well as the option periods and delineated the services provided under each CLIN. Id. Below each CLIN’s extended price were the words “NOT-TO-EXCEED,” denoting the ceiling price for that CLIN. Id. at 2-11. At issue here is the payment of services covered by CLIN 2001, which had a ceiling price of $1,429,428.67. Id. at 14. The task order was a time-and-materials contract (“contract”) that included Federal Acquisition Regulation (FAR) 52.232-7, Payments Under Time-and-Materials and Labor-Hour Contracts (AUG 2012) (48 CFR 52.232-7 (2021)) (Payments clause), and FAR 52.243-3, Changes-Time-and-Materials or Labor-Hours (SEPT 2000) (Changes clause). Exhibit 7 at 19. FAR 52.232-7(d) states: Total cost. It is estimated that the total cost to the Government for the performance of this contract shall not exceed the ceiling price set forth in the Schedule, and the Contractor agrees to use its best efforts to perform the work specified in the Schedule and all obligations under this contract within such ceiling price. If at any time the Contractor has reason to believe that the hourly rate payments and material costs that will accrue in performing this contract in the next succeeding 30 days, if added to all other payments and costs previously accrued, will exceed 85 percent of the ceiling price in the Schedule, the Contractor shall notify the Contracting Officer giving a revised estimate of the total price to the Government for performing this contract with supporting reasons and documentation. If at any time during performing this contract, the Contractor has reason to believe that the total price to the 1 All exhibit references are to respondent’s appeal file exhibits, unless otherwise noted. CBCA 8422 3 Government for performing this contract will be substantially greater or less than the then stated ceiling price, the Contractor shall so notify the Contracting Officer, giving a revised estimate of the total price for performing this contract, with supporting reasons and documentation.