Contractor’s Claim Dismissed for Lack of ‘Sum Certain’ in Appeal

The Armed Services Board of Contract Appeals has dismissed a contractor’s appeal due to a failure to meet the “sum certain” requirement outlined in the Contract Disputes Act (CDA). The contractor, seeking damages after the Government declined to exercise the contract’s first option year, submitted a claim for “no less than” $326,276. This phrasing, which included qualifying language, led the Board to determine that the claim did not specify a sum certain, a critical component for such claims under the CDA.

Understanding the ‘Sum Certain’ Requirement

According to the CDA, any claim submitted to the Government must include a clear and specific sum. The requirement for a sum certain is mandatory; without it, the contracting officer has grounds to deny the claim. The Board emphasized that using vague qualifiers such as “approximately,” “to be determined,” or “in excess of” does not fulfill this requirement. In this instance, the contractor’s phrasing ultimately rendered the appeal invalid, as it lacked the necessary clarity.

The Federal Circuit’s 2023 decision in the case of ECC International Constructors clarified that while the sum certain requirement is essential, it is not jurisdictional. Consequently, the Board dismissed the appeal without prejudice, allowing the contractor the option to submit a new claim that meets all necessary criteria.

Limitations on Appeal Requests

Additionally, the contractor requested that the Board order the agency to exercise the contract’s option year. However, the Board reiterated that it does not possess jurisdiction over requests for specific performance. This further underscored the limitations placed on contractors when submitting claims for monetary relief.

The dismissal highlights the significant implications for contractors navigating the complexities of government contracts. A failure to state a sum certain may not only lead to immediate denial of a claim but can also jeopardize the contractor’s position in future appeals. As the landscape of contract law evolves, understanding these fundamental requirements becomes essential for contractors aiming to secure their claims successfully.