Takeaways from a recent ASBCA dismissal of a contractor's claim
To assert a claim for monetary relief, the claimant must seek a "sum certain." A monetary claim that does not state a sum certain may be denied by the Contracting Officer and denied by the Board of Contract Appeals for failure to state a claim.
In contrast, there are circumstances where a contractor may seek declaratory relief without stating a sum certain. Where a claim could result in changes to contract performance or the avoidance of costs, as opposed to purely monetary relief, then the claim is a nonmonetary claim and is not subject to the sum certain requirement.
In GE Renewables US, LLC, ASBCA No. 63842 (June 24, 2025), the contractor sought a declaration that it had the right to seek a price adjustment under the Economic Price Adjustment clause incorporated in its contract with the government. However, the Board held that the only significant consequence of a declaration that the contractor had a right to seek a price adjustment would be a price adjustment, which is purely monetary. Because the essence of the dispute is monetary, the contractor's claim had to state a sum certain. Since the contractor's claim did not do so, the contractor failed to state a proper claim. The government's motion to dismiss was granted, and the contractor's appeal was dismissed without prejudice.
The teaching point is that a federal contractor should be mindful of the sum certain requirement in asserting a claim and be wary of the effect an action for declaratory relief may have on the contract price. If the claim has monetary implications, the prudent contractor will include a sum certain in the claim for relief.
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