Our client had filed rates for shipping goods with the Military Surface Deployment and Distribution Command (“SDDC”). Its rates were accepted and certified by both SDDC and the transportation office at Fort McPherson, GA. We alleged that a contract was formed whereby SDDC agreed to tender shipments to our client according to the terms of the rate filing solicitation and our client agreed to accept shipments tendered to it according to the rate filing solicitation. We further alleged that SDDC did not honor the terms of the contract because the Army failed to award shipments from Fort McPherson to our client according to the terms of the rate solicitation. Because the Army failed to award shipments, our client lost profits it would have otherwise made.
The Army issued a final decision denying our client’s claim and we appealed that denial to the Armed Services Board of Contract Appeals. The government filed a motion to dismiss, arguing that no contract existed. The Board denied that motion. The government moved for reconsideration, which motion was also denied. The parties thereafter engaged in settlement discussions which resulted in a payment of lost profits to our client.