Judge Rules Fixed-Price Contract Is A Risk On Co., Not Army

Law360, Washington (March 19, 2014, 4:35 PM EDT) -- The Court of Federal Claims on Wednesday denied Agility Defense & Government Services Inc.’s bid for a nearly $1.4 million adjustment to a U.S. Army weapons contract, ruling it had borne the risk of a cost blowout when agreeing to a fixed-price deal.

Agility had argued that its increased costs for delivering SPG-9 recoilless guns to the Army had been caused by an Army adjustment to the contract, driven by circumstances beyond its control. But its claims fell under the “overarching principle” that firm fixed-price contracts...
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