Government Contracting Database
Equipment is regarded as on “standby” when “… the equipment is and ready and able to work, but is not operating due to some reason beyond the contractor’s control.” Ronald Adams Contractor, Inc., AGBCA Nos. 91-155-1, 91-208-1, 92-219-1, 94-3 BCA ¶ 27,018 at p. 134,688.
… In order to be paid for equipment standby, a contractor has to show that it would have “… held the equipment for which claim is made in readiness to perform the Government contract rather than making some other disposition of it …” J.D. Shotwell Company, ASBCA No. 8961, 65-2 BCA ¶ 5243, at p. 24,687. The essence of a standby claim is that the contractor has been deprived of the productive use of its equipment by being compelled by circumstances for which the Government is responsible to keep the equipment idle. It is not enough that the equipment simply was idle because the contractor had no other use for it at the time. See, Excavation-Construction, Inc., ENG BCA No. 3858, 82-1 BCA ¶ 15,770, at p. 78,067.
A contractor is without the economic benefit of its equipment if it is deprived of its productive use.
Appeal of Dillon Const., Inc., ENGBCA No. PCC-101, 96-1 BCA ¶ 28113.
Updated: August 7, 2018