In the realm of government contracts and litigation thereunto, the United States Court of Appeals for the Federal Circuit has provided some clarity on a critical issue. The court holds that the “sum certain” requirement for Contract Disputes Act (CDA) claims against the government is a nonjurisdictional rule, and as such, this requirement is subject to forfeiture if it is not timely raised by the government. This ruling was shared by the legal firm Perkins Coie.
The “sum certain” requirement is a stipulation in the Contract Disputes Act which implies that a contractor must state a specific or definite claim amount while filing an appeal against the government on a contractual dispute. The parameters of this requirement have been at the center of many debates and legal discourses over the years. The nonjurisdictional nature of this rule, as per the decision of the Federal Circuit, now means it could be forfeited if it doesn’t come up for discussion in a timely manner by the government.
The implications of this development are vast, particularly for contractors who are accustomed to doing business with the government. It means that any delay by the government in raising issues related to the “sum certain” requirement could result in contractors having more leverage in disputes.
Legal, industry professionals and other practitioners will surely be intently reviewing this development to grasp its full impact. They will also need to be well-prepared to adjust their policies and guidelines, practices and procedures to respect any dictate resulting from this decision.
For a more detailed understanding of this topic, you might want to visit Federal Circuit’s summation on “sum certain” requirement as described by Perkins Coie.