TYD Services

Armed Services Board of Contract Appeals·Decided July 8, 2026·No. 64429, 64430·Published

Opinion

ARMED SERVICES BOARD OF CONTRACT APPEALS

Appeals of - )

)

TYD Services ) ASBCA Nos. 64429, 64430 )

Under Contract Nos. W912ER-24-P-0005 )

W912ER-25-P-0004 )

APPEARANCE FOR THE APPELLANT: Japdeep Kaur Managing Director

APPEARANCES FOR THE GOVERNMENT: Michael P. Goodman, Esq.

Engineer Chief Trial Attorney Katherine M. Smith, Esq. Engineer Trial Attorney U.S. Army Engineer District, Middle East

OPINION BY ADMINISTRATIVE JUDGE STINSON UNDER BOARD RULE 12.3

Appellant TYD Services (TYD or appellant) appeals a contracting officer (CO)

final decision (COFD) of a claim relating to two different contracts with the United States Army Corps of Engineers (USACE or government), Middle East District, for vehicle leasing and fleet services in the State of Qatar. TYD elected to proceed pursuant to Board Rule 12.3, Accelerated Procedure. Both parties agreed to waive a hearing and submit their respective positions on the written record under Board Rule 11. Pursuant to Rule 12.3(c), the Board’s decision “will normally be short and contain only summary findings of fact and conclusions.”

FINDINGS OF FACT

The Two Vehicle Lease Contracts

1. On May 1, 2024, the government awarded TYD firm-fixed-priced Contract No. W912ER24P0005 (first contract) for the lease of 21 non-tactical sport utility vehicles for use by government personnel located at USACE Middle East District’s Qatar Area Office at Al Udeid Air Base (R4, tab 1 at 1, 3-4; GPFOF ¶ 1). 1

1 The government submitted with its initial brief a detailed Proposed Findings of Fact (GPFOF) with citations to the record (gov’t br. at 1-11), to which appellant responded in its reply brief (ARGPFOF) (app. reply at 4-9).

2. Following award of the first contract, the government issued three modifications (Modification Nos. P00001, P00002, and P00003), extending the period of performance a total of 14 months, from May 1, 2024, through July 2, 2025, with a total contract price of $218,066 (R4, tab 1 at 1, 4, 2 at 1, tab 3 at 1, tab 4 at 1-2; GPFOF ¶ 2). Including all modifications, the first contract contained four contract line-item numbers (CLINs), with the second CLIN - CLIN 0002 2 - being for “service and repair costs related to ‘other than normal wear and tear’ issues except cost covered by applicable warranties and/or insurance” up to an amount of $5,000 (R4, tab 1 at 3; GPFOF ¶ 3). 3

3. On June 30, 2025, the government awarded TYD firm-fixed-priced Contract No. W912ER25P0004 (second contract) for the lease of 12 non-tactical sport utility vehicles also for use by government personnel at Al Udeid Air Base from July 2, 2025, to January 2, 2026, and with a total contract price of $57,456 (R4, tab 5 at 1-3, 5; GPFOF ¶ 14).

4. Both contracts contained a PERFORMANCE WORK STATEMENT (PWS)

For Leased Non-Tactical Vehicles (NTV) with Maintenance Services (R4, tab 1 at 4-14, tab 5 at 4-15). Part 1, General Information, paragraph 1.5 Contracting Officer Representative [COR], states “[t]he COR will be identified at the time of award. A letter of appointment will be issued to the COR stating the responsibilities and limitations of the COR. The COR is not authorized to change any of the terms and conditions of the resulting order.” (R4, tab 1 at 4, tab 5 at 6)

5. PART 2 – DEFINITIONS & ACRONYMS, paragraph 2.1, Definitions, provides, in part:

2.1.2. Contracting Officer (CO): A person with authority to enter into, administer, and or terminate contracts, and make related determinations and findings on behalf of the USG [United States government]. Note: The Contracting Officer is the only individual who can legally bind the USG.

2.1.3. Contracting Officer’s Representative (COR): An employee of the USG appointed by the KO to administer

2 Unlike the first contract, the second contract had no separate CLIN for service and repair costs related to other than normal wear and tear (R4, tab 5; GPFOF ¶ 16).

3 In its reply brief, appellant admits almost uniformly the government’s allegations regarding portions of the contracts as quoted by the government (see gov’t br. at 1-5) but denies certain implications of that language (see app. reply at 3-5 (ARGPFOF ¶¶ 3-6, 8-12, 15-18, 20, 23-24)).

the PO. Such appointment shall be in writing and shall state the scope of authority and limitations. This individual has authority to provide technical direction to the Contractor as long as that direction is within the scope of the contract, does not constitute a change, and has no funding implications. This individual does NOT have authority to change the terms and conditions of the contract. A COR will be appointed for this contract.

(R4, tab 1 at 4-5, tab 5 at 6) (bold in original text)

6. PART 2, paragraph 2.1.8, defined “fair wear and tear” as “[t]he normal deterioration of items attributed to continuous usage,” including “repair or replacement of all parts not resulting from abuse, accidents, criminal or hostile acts, or any event not at the fault of the USG” (R4, tab 1 at 5, tab 3 at 4, tab 4 at 4, tab 5 at 6; GPFOF ¶¶ 4, 15).

7. Section 2.1.8 also provided “[e]xamples of normal and fair wear and tear”

including:

NTV Exterior - Dents/Dings equal to or less than 152.4 millimeters, (6 inches) up to 10 dents/dings. **(Applies to entirety of vehicle excluding bumpers)** Includes any removal/repair due to the application of decals due to the austere environment, scratches will be evaluated on a case by case basis. Generally, scratches are considered fair wear and tear. Any and all bumper damage. Any and all damage to Running boards.

Vehicle Interior - Seat rips/tears equal to or less than 25.4 millimeters, (1 inch) up to 10 rips/tears. 10 rips/tears is considered to be part of normal duties/operation of vehicle. Any seat rips/tears on seams. Soiled interiors with scratches on plastic components. Any and all damage/degradation to seatbelts. Damaged/degraded/ missing tool kit for changing spare tire. Missing ash trays, cigarette lighters or any other removable component to NTV.

(R4, tab 1 at 5, tab 3 at 4, tab 4 at 4, tab 5 at 7; GPFOF ¶¶ 5, 17)

8. PART 4 – CONTRACTOR FURNISHED ITEMS AND SERVICES, states that TYD was required to “provide all labor, material, equipment, tools, supervisions,

and other non-personal services necessary to maintain the vehicular leasing and maintenance requirements in an austere environment as defined in this PWS” (R4, tab 1 at 7, tab 3 at 6, tab 4 at 6, tab 5 at 9; GPFOF ¶¶ 7, 19). TYD also was “responsible for all unscheduled maintenance, to include all labor, equipment, parts, and materials” (R4, tab 1 at 12, tab 3 at 11, tab 4 at 11, tab 5 at 14; GPFOF ¶¶ 8, 20).

9. With respect to traffic accidents and incidents, PART 4 provided:

4.6 Safety: . . . The driver shall be responsible to provide a police report in order for the Contractor to repair all vehicle damages. The driver shall provide a police report for all traffic incidents. If the driver does not provide a police report the driver will be liable for the full repairs cost and full traffic incident cost.

....

4.6.2 Accident Notification: The Contractor will notify the identified Contracting Officer’s Representative (COR) as soon as practical, but not later than eight hours, after notification of an accident which meets the definition of Recordable Injuries or Illnesses or High Visibility Accidents, property damage equal to or greater than $2,000. Immediate notifications to the Contracting Officer (KO), COR, and District/Division Safety Offices shall be made for all accidents noted in EM 385-1-1 paragraph 01-D-02 . . . . The Contractor shall ensure that recordable accident and property damage reports are complete and accurate.

(R4, tab 1 at 9-10, tab 3 at 8-9, tab 4 at 8, tab 5 at 11 (bold text in original); GPFOF ¶¶ 12, 24)

10. Neither contract placed a specific duty upon the government to provide police reports to the contractor (R4, tabs 1, 3-5; GPFOF ¶¶ 13, 25).

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