Board Dismiss Part of Contractor’s Claim under 6-Year Statute of Limitations
From 2002 to 2015, Pegasus Enterprises, LP ("Contractor") leased office space to the GSA. On March 7, 2016, the Contractor filed a claim for overtime utilities totaling $624,342. It turns out that the Government had not paid overtime utilities for a decade. The Board held that the Contract Disputes Act's 6-year statute of limitations bars claims against the Government that arose prior to March 2010. In so holding, the Board noted that the claims must be filed with the Contracting Officer within 6 years after the claim has accrued:
Under the CDA, “[e]ach claim by a contractor against the Government relating to a contract . . . shall be submitted within [six] years after the accrual of the claim.” 41 U.S.C. § 7103(a)(4)(A) (2012); see 48 CFR 33.206(a)(2004)(“Contractor claims shall be submitted, in writing, to the contracting officer for a decision within [six] years after accrual of a claim, unless the contracting parties agreed to a shorter time period.”); JBG/Federal Center, L.L.C. v. General Services Administration, CBCA 5506, et al., 18-1 BCA ¶ 37,019, at 180,277. “A party’s failure to submit a claim within six years of accrual is an affirmative defense to the claim.” ThinkGlobal Inc. v. Department of Commerce, CBCA 4410, 16-1 BCA ¶ 36,489, at 177,793 (citing Systems Management & Research Technologies Corp. v. Department of Energy, CBCA 4068, 15-1 BCA ¶ 35,976, at 175,789)
The Board did allow the contractor to proceed with overtime charges that occurred after March 2010. So, the contractor was still able to obtain partial relief.
