A contractor argued it was owed extra money for installing washers and dryers because the bid schedule only listed unit prices for the appliances themselves—not installation labor. But the ASBCA said the contract’s performance work statement clearly required installation to be included in the base price. The Board ruled that even if the pricing structure was confusing, it was obviously confusing. The contractor should have asked about it before bidding. Because it didn’t, the contractor lost its claim.

Arctic Swan Construction Inc., ASBCA Nos. 63510, 64085

• Background – The Air Force hired the contractor to transport and set up furniture and appliances at Eielson Air Force Base in Alaska under a fixed-price contract. During performance, a dispute arose over whether the contractor had to install, connect, and disconnect washers and dryers as part of the base contract price. The contractor said no and sought $334,213 in additional compensation. The contracting officer disagreed and denied the claim. The contractor appealed to the ASBCA.
• Contract Interpretation – The contractor argued the bid schedule only listed “Washer” and “Dryer” with unit prices—no separate line item for installation labor. Therefore, its prices covered only transportation and basic handling. The Board rejected this argument. The performance work statement explicitly required the contractor to “deliver, assemble/disassemble and set up all furnishings, washers/dryers & appliances” and to supply a “certified installer” for water and electrical connections. The Board found the only reasonable interpretation was that the unit price included all work tied to each appliance. Reading it otherwise would make three separate contract provisions meaningless.
• Patent Ambiguity – The contractor next argued the contract contained a hidden (latent) ambiguity that should be resolved in its favor. The Board disagreed. Even if there was an ambiguity, it was obvious (patent), not hidden. Any reasonable contractor reviewing the solicitation before bidding would have noticed the tension between the detailed installation requirements in the work statement and the simple unit-price structure in the bid schedule. When an ambiguity is patent, contractors have a duty to ask questions before submitting their bids. The contractor here asked nothing.

The contractor is represented by Edmund Charles Palmer (pro se). The government is represented by Geoffrey R. Townsend of the U.S. Air Force.

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