Negligent Estimate Claim Survives
In its contract to provide laundry services in Iraq, Am. Gen. submitted a claim that the government negligently estimated its requirements. The government argued it was not subject to a negligent estimate claim which applies only to requirements type contracts. The board sided with Am. Gen stating negligent estimate claims may be pursued if volume estimates are material on a contract where if the estimates underlying the contract’s price were negligently estimated and Am. Gen. relied on them then a claim based on that negligence is valid (Am. Gen. Trading & Contracting WLL, ASBCA No. 56758).
