Wickham Contracting Company, Inc. v. Fischer

12 F.3d 1574 (1994)

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Wickham Contracting Company, Inc. v. Fischer

United States Court of Appeals for the Federal Circuit
12 F.3d 1574 (1994)

  • Written by Liz Nakamura, JD

Facts

Wickham Contracting Company, Inc. (Wickham) (plaintiff) entered into a contract with the General Services Administration (government) (defendant) to renovate two federal buildings in Albany, New York (Albany project). The contract performance term was 365 days. However, the government ordered numerous work delays, resulting in a total contract completion time of 969 days. Applying the Eichleay formula, the government awarded Wickham 34 percent, or approximately $333,000, of Wickham’s unabsorbed home office overhead costs resulting from the government’s delays. During the delay period, Wickham only worked on two other major contract projects, and only the Albany project was headquartered from Wickham’s home office. Wickham petitioned the General Services Administration Board of Contract Appeals (Board) to recover 80 percent of its unabsorbed home office overhead costs, rather than 34 percent, because 80 percent of Wickham’s home office overhead expenses were directly attributable to the Albany project. The Board rejected Wickham’s claim, holding that Wickham’s entitlement to recover home office overhead costs was determined by the Eichleay formula, not by the actual amount of home office overhead costs allocable to the Albany project’s government-caused delays. Wickham appealed.

Rule of Law

Issue

Holding and Reasoning (Michel, J.)

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