Bad Faith and Option Periods
In DekaTron Corporation v. United States, DekaTron Corporation’s alleged bad faith in the government’s failure to exercise an option year. DekaTron sought damages of $4.9 million including $3.7 million for profits and $1.1 million leases, furniture, supplies, and other obligations. 128 Fed. CL. 115. The Department of Labor, the defendant in this case, filed a motion for dismissal for failure to state a claim. DekaTron, an SDVOSB incorporated in Delaware, was awarded a Department of Labor’s contract on September 22, 2010, for an indefinite delivery and definite quantity (society IQ) contract. The contract involved a base year and for one-year option periods for the provision of technical support services.