The VA issued a task order to Rocjoi Medical Imaging, LLC (“contractor”) to study radiological examination results. The contractor argued the VA failed to request approximately 10,000 studies a year as provided in the task order. The VA said the task order did not guarantee 10,000 studies but was merely a vehicle to obtaining funding for services up to this estimated amount.
The VA’s position is odd since task orders are not used to obtain funding but rather to order services. The indefinite quantity and ordering clauses do treat “orders” as estimates either. Nevertheless, the Board agreed with the VA.
The facts are unique, however. The Board looked at the conduct of the parties before the dispute arose. The Board found that both the VA and the contractor acted as if the 10,000 radiological review services specified in the task order were estimates and for funding purposes only. The VA medical facility had “requested” services on an as-need basis. The contractor invoiced for these services as they were requested. The Board therefore concluded that the task order “cannot be viewed now as a firm order for any radiology services.” The Board denied the contractor’s claim that the VA failed to order 10,000 services under the task order.
https://cbca.gov/files/decisions/2021/CHADWICK_07-23-21_6885__ROCJOI_MEDICAL_IMAGING_LLC.pdf
