Government-caused Delivery Delays May Have Breached Implied Duty of Good Faith and Fair Dealing; CAFC No. 2016-1265, Agility Public Warehousing Co. KSCP v. James N. Mattis, Secretary of Defense

Appeal of the contracting officer’s denial of claims for unpaid delivery charges is denied in part, where a contract modification provided that the government would consider claims based on government-cause delivery delays, but did not guarantee they would be paid; and vacated and remanded in part, where the Armed Services Board of Contract Appeals failed to properly consider whether the government had breached its implied duty of good faith and fair dealing by engaging in conduct that prevented the appellant from making its deliveries in a timely manner, or to consider whether the government had constructively changed the contract by its conduct.