Dynamic Systems Denied $1 Million Army Contract Wage Cost Claim

Dynamic Systems Technology Inc. lost its its appeal challenging the US Army’s refusal to pay a $1.1 million claim for additional wage costs under a task order to support a community services family advocacy program at Fort Bliss in Texas.

The dispute concerned which party bore the risk when the contractor failed to apply the proper labor category for a position, and whether the contractor should receive additional Service Contract Act costs that it anticipated, but didn’t include in cost proposals, the Armed Services Board of Contract Appeals said.

The SCA provides that service employees under US government contracts must ...