International Tech. Corp. v. Secretary of the Navy

Apr 18: In the U.S. Court of Appeals, Federal Circuit, Case No. 07-1276. The case involves a claim for breach of a cost-plus-fixed-fee contract for treatment of contaminated soil at a Navy facility in Stockton, California.The contractor, International Technology Corporation (ITC), sought to recover additional soil treatment expenses incurred by a subcontractor, Terra Kleen Response Group, Inc. (TK), because of unexpectedly high concentrations of clay in the treated soil. The Armed Services Board of Contract Appeals (Board) held that ITC was not entitled to an award of costs and also determined that ITC was not entitled to damages for breach of the contract. The Federal Circuit affirmed the Boards decision.

The Federal Circuit said, "we conclude that ITC has not established that there was any representation in the contract documents as to the clay content of the overall stockpile of contaminated soil and, alternatively, because ITC has failed to establish that it would have been reasonable for TK to rely on any such representation under the circumstances.

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