This case, CBCA 7168, involves an appeal by the contractor, The GEO Group, Inc. (GEO), of a decision by the Federal Bureau of Prisons (BOP) regarding the application of monthly ramp-down pricing (MRDP) for a correctional facility contract. The dispute arose when BOP refused to pay GEO the Monthly Operating Price (MOP) for March 2021, but instead paid the MRDP, which GEO believed was only applicable at the end of the fifth option year. GEO filed a certified claim with the BOP contracting officer seeking additional payment for March 2021, which was denied, leading to this appeal.

Arguments

GEO argued that the contract and updated pricing schedules limited the application of MRDP to the end of the fifth option year. It contended that BOP breached the contract by charging the MRDP in modification 5 rather than the MOP in March 2021 when the contract expired. BOP, on the other hand, argued that the MRDP was not restricted to the fifth option year, as the definition of MRDP was clear that it applies within three months prior to the contract’s expiration, when inmate population reduces to 50%, which occurred in March 2021.

Outcome and takeaways

In its decision, the board found that the contract was unambiguous in its definition of MRDP and that the application of MRDP was not limited to the end of the fifth option year. The board found that GEO’s interpretation was unreasonable and did not entitle it to the relief it sought. This case highlights the importance of careful attention to contract language and the potential impact of contract modifications on pricing and performance. Government contractors should ensure that they understand the terms of their contracts and any modifications to avoid disputes such as this one.

This summary was AI generated on 21 August 2023 at Jason Bakke’s request.