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Technical Assistance International v. United States

United States Court of Appeals for the Federal Circuit
150 F.3d 1369 (1998)


Facts

Technical Assistance International, Inc. (TAI) (plaintiff) won a bid to contract with the United States government (defendant) to maintain the US Army’s vehicles at one of its bases. The contract was based in part on the government’s estimate of how quickly it would replace vehicles. Due to many factors, including a surplus of vehicles at other bases, the government ended up replacing vehicles more frequently than estimated, resulting in less work for TAI under the contract. TAI sued the government, claiming that this increased replacement rate violated the contract. TAI argued that buyer decisions affecting the estimates that underlie a requirements contract could constitute a breach. The United States Court of Appeals for Federal Claims ruled in favor of TAI, holding that a contractor in a requirements contract assumes the risk only for changes in the “indigenous needs” of the other party, and that the government’s surplus in other fleets did not qualify. The government appealed.

Rule of Law

Issue

Holding and Reasoning (Bryson, J.)

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