Does the ASBCA Have Jurisdiction to Hear COVID-Related Claims Arising Under the CARES Act?
The contractor sought reimbursement for COVID-related costs under the CARES Act. The government said the ASBCA did not have jurisdiction to hear CARES Act-related claims. The board, however, found that CARES Act claims fall within its ambit.
Appeal of Aviation Training Consulting, LLC, ASBCA No. 63634
- Claim – The contractor submitted a claim pursuant the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The contractor sought costs incurred to keep its staff ready during the COVID-19 pandemic. The agency denied the claim. The contractor appealed to the ASBCA.
- Motion to Dismiss – The agency moved to dismiss for lack of subject matter jurisdiction. The agency argued the board did not have jurisdiction to make an award under the CARES Act.
- Board Has Jurisdiction – The board denied the government’s motion. The board has jurisdiction over an appeal from a claim “related to a contract” with the government. The CARES Act explicitly states that an agency may use funds made available by the Act to modify a government contract and reimburse the contractor. Thus, a claim under the CARES Act is a claim “related to a contract.”
The contractor is represented by John M. Mattox II, Matthew T. Schoonover, Matthew P. Moriarty, Ian P. Patterson, and Timothy Laughlin of Schoonover & Moriarty LLC. The government is represented by Caryl A. Potter, Aaron J. Weaver, and Geoffrey Townsend of the Air Force.
–Case summary by Craig LaChance, Senior Editor
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