Keco Industries, Inc.
Opinion of the Court
Plaintiff entered into two contracts with military agencies for the manufacture and sale of self-contained electric air conditioning units; although negotiated in form, each contract award was made on a competitive basis. Each solicitation and contract specifically restricted the compressor, one of the components of the unit, to a single acceptable type obtainable only from a single source. Plaintiff contends that because of events emanating from its performance of a prior contract with a military agency for the same kind of air conditioner, it was authorized alternatively to substitute another compressor costing about one-fifth the cost of the one specified consonant with its value engineering change proposal (VECP); contends, in effect, that the Government’s officer contracted away without limitations as to time or quantity the Government’s right to decide what it wanted to buy or at the least its right to change a specification from contract to contract even when convinced of its defects; and contends that when the contracting officers insisted upon compliance with the formal specifications of the two later contracts requiring use of the compressor stated therein, this was a change in the contracts entitling plaintiff to equitable adjustments in the contract prices. This suit seeks review under Wunderlich Act criteria of a decision of the Armed Services Board of Contract Appeals denying plaintiff’s claims. On January 31, 197,3 Commissioner Philip E. Miller filed a report setting forth at length the events leading up to the Government’s acceptance of a substitute compressor pursuant to plaintiff’s VECP for use in performance of the earlier contract. The Commissioner concluded that plaintiff has failed to show that anyone intended to promise or was authorized to make a promise that on all procurements of air conditioners of the type covered by the earlier contract the lower cost compressor was a qualified alternative once the additional hours of life testing were completed successfully. The Commissioner also concluded that plaintiff has not shown that it was free to disregard future solicitations, specifications
Case-law data current through December 31, 2025. Source: CourtListener bulk data.