Creative Management Services, LLC v. United States, No. 20-1449 (Fed. Cir. 2021)Annotate this Case
In 2009, MC-2 was awarded Government Services Administration (GSA) task order to provide services for the annual GovEnergy Conference. MC-2 performed the Task Order in 2009, 2010, and 2011. GSA canceled the 2012 Conference before it began and requested that MC-2 return the entire Reserve Fund and an accounting for the Reserve Fund over the contract's life. MC-2 purportedly responded days later, arguing that GSA never before claimed that it was entitled to the difference between the Conference revenue and expenses, that MC-2 was entitled to any excess revenue, and that MC-2 had submitted a final accounting at the end of each contracting year. In 2012, MC-2 submitted a termination-for-convenience proposal.
In November 2015, GSA sent MC-2 a letter providing the Contracting Officer’s final decision on MC-2’s proposal, which had sought $717,680.10, stating that the Government believed that MC-2 owed the government money. The decision stated that “GSA considers the Reserve Fund balance a contract debt. In January 2018, GSA sent a follow-up letter, demanding payment of $660,013.68. Because MC-2 had not appealed the November 2015 Final Decision, GSA deemed MC-2’s debt “final and conclusive,” 41 U.S.C. 7103(g)).
In December 2018, MC-2 filed suit, arguing that the 2015 GSA letter was not a final decision because it failed to state a sum certain. The Federal Circuit affirmed the dismissal of the suit as untimely because it was not brought within 12 months of the 2015 decision, as required by 41 U.S.C. 7104(b)(3). GSA issued a valid claim under the Contract Disputes Act for the return of the Reserve Funds; GSA’s claim was the subject of a written decision by the GSA contracting officer; and MC-2 failed to file suit within 12 months of receiving the contracting officer’s final decision