WSP USA Solutions Inc.
CourtArmed Services Board of Contract Appeals
Date FiledSeptember 1, 2026
Docket62674
JudgeWoodrow
StatusPublished
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Full Opinion
ARMED SERVICES BOARD OF CONTRACT APPEALS
Appeal of - )
)
WSP USA Solutions Inc. ) ASBCA No. 62674
)
Under Contract No. W911WN-15-D-0001 )
APPEARANCES FOR THE APPELLANT: Scott Arnold, Esq.
David M. Nadler, Esq.
Carolyn R. Cody-Jones, Esq.
Stephanie M. Harden, Esq.
David L. Bodner, Esq.
Blank Rome LLP
Washington, DC
APPEARANCES FOR THE GOVERNMENT: Michael P. Goodman, Esq.
Engineer Chief Trial Attorney
Olivia J. Bailey, Esq.
Heidi M. Logan, Esq.
Breanna M. McCann, Esq.
Engineer Trial Attorneys
U.S. Army Engineer District, Pittsburgh
OPINION BY ADMINISTRATIVE JUDGE WOODROW
This appeal returns to the Board on remand from the United States Court of
Appeals for the Federal Circuit. WSP USA Sols. Inc. v. Sec’y of the Army,
No. 23-1256, 2025 WL 573242 (Fed. Cir. Feb. 21, 2025) (nonprecedential). The
Federal Circuit vacated our October 13, 2022, decision, which had concluded that
Contract No. W911WN-15-D-0001 unambiguously fixed task order pricing at the time
the task order was placed, regardless of option year, holding that the Board erred by
failing to consider the contract “in its entirety as modified by the later-issued task
orders.” 2025 WL 573242 at *1. Rejecting both parties’ arguments that the pricing
scheme is unambiguous, the court directed the Board to conduct a “fuller and more
focused analysis” of the pricing provisions, accounting for the task order
modifications, and to apply standard contract-interpretation steps if ambiguity persists.
Id. at 14-23.
We have now conducted the fuller analysis the Federal Circuit directed,
considering the contract as a whole and as modified by the later-issued task orders.
For the reasons set forth below, we find that the contract, as modified, is not
ambiguous as to the disputed pricing question. The bilateral modifications – which the
Federal Circuit instructed us to treat as part of the contract – placed and continued all
of the hurricane response work, its funding, and its ceiling under the Option Year 2
line item (CLIN 2001). Read together with the contract’s own direction that pricing
for each item follow “the corresponding rate schedule,” the contract as a whole allows
for only one reasonable interpretation: that the disputed work is priced at Option
Year 2 rates. The parties’ subsequent course of performance independently confirms
this conclusion. Accordingly, on remand, we deny the appeal.
STATEMENT OF FACTS
The Board incorporates by reference the findings of fact set forth in its
October 13, 2022 decision (findings 1- 29) with the exception of finding 2, which we
correct to find that the contract is a requirements contract and not an indefinite
quantity indefinite delivery contract (R4, tab 2 at 13-22). We supplement our original
findings with the following additional findings relating to the contract modifications
that the Federal Circuit directed us to consider.
I. The Contract
30. On October 22, 2014, the U.S. Army Corps of Engineers (USACE)
awarded requirements Contract No. W911WN-15-D-0001 to WSP USA Solutions Inc.
(WSP or appellant) to provide temporary emergency power services for declared
federal disasters. The contract had an initial total maximum value of approximately
$95 million, consisting of a one-year base period and four one-year option periods
which the government could choose to exercise. (R4, tab 2 at 12-22, 27)
31. To organize the work by year, Section B of the contract used a series of
contract line item numbers (CLINs). CLIN 2001 corresponded to Option Year 2
(OY2) and CLIN 3001 corresponded to Option Year 3 (OY3). The contract
established the maximum spending limit, or Not-to-Exceed (NTE) “ceiling,” for each
option year in an unusual manner. Instead of a discrete annual limit, the ceiling for
each new year was defined as the “unexpended amount remaining from the prior
year,” creating a rollover ceiling value for the life of the contract (R4, tab 2 at 13-22).
32. Section J of the contract contained Attachment 1, a detailed “Rate
Schedule.” This schedule established the specific, firm-fixed prices, or “Rates,” that
WSP was entitled to for discrete categories of labor and equipment (e.g., the price for
an electrician per day or a generator per week). Critically, this Rate Schedule provided
for an approximately three percent escalation in these firm-fixed prices for each
successive option year, meaning the rates for OY3 were higher than for OY2 (R4,
tab 2 at 91-95).
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33. Section F of the contract set forth a “Delivery Information” chart that
defined the specific period of performance for each CLIN. It listed CLIN 2001 (OY2)
as covering the period from October 22, 2016, through October 21, 2017, and
CLIN 3001 (OY3) as covering the period from October 22, 2017, through October 21,
2018 (R4, tab 2 at 62-63). The contract also incorporated by reference the “changes”
clause at Federal Acquisition Regulation (FAR) 52.243-1, Alt. I (Aug 1987) (R4, tab 2
at 68).
34. To connect the yearly CLINs with their corresponding prices, the narrative
for each CLIN in Section B stated: “THE CONTRACTOR SHALL PROVIDE
PRICING IN ACCORDANCE WITH THE NARRATIVE IN SECTION B AND THE
CORRESPONDING RATE SCHEDULE INCLUDED AS ATTACHMENT 1,
WHICH WILL BE INCLUDED IN THE CONTRACT.” (R4, tab 2 at 13-22)
II.Hurricane Response and Task Order Issuance
35. On August 16, 2017, USACE exercised the contract’s third option year
(OY3), establishing a new period of performance to run from October 22, 2017,
through October 21, 2018 (R4, tab 8 at 328, 333-34). Although exercised on
August 16, 2017, OY3’s performance period did not commence until October 22, 2017
(id. at 328).
36. Shortly thereafter, in response to Hurricanes Irma and Maria, USACE
issued three initial Task Orders during the OY2 performance period: Task Order
No. 3031, Task Order No. 3033, and Task Order No. 3001. Task Order Nos. 3031 and
3033 were assigned to CLIN 2001, the designated line item for OY2, (R4, tabs 18, 44,
55), while Task Order No. 3001 initially was assigned under CLIN 3001 (R4, tab 55
at 487).
A. Modifications to the Task Orders and Contract During the Hurricane
Response
37. As the hurricane response mission expanded dramatically, the parties
executed a continuous series of modifications. Between September 2017 and
September 2018, USACE issued 23 modifications to Task Order No. 3031 alone, each
increasing funding or extending performance under CLIN 2001 (R4, tabs 19-41). Five
of these modifications (R4, tabs 19-23) were executed during the OY2 period, while
the remaining 18 modifications (R4, tabs 24-41) were bilaterally executed after the
OY3 period had commenced on October 22, 2017 (R4, tabs 24-30, 32, 34-41). WSP
signed each bilateral modification using Standard Form 30 (SF 30) without raising any
objection to the continued obligation of funds under the OY2 CLIN. (R4, tabs 19-41).
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38. The financial and temporal scale of these post-OY2 modifications was
immense, yet the parties consistently preserved the OY2 pricing structure: At the end
of OY2, the total value of Task Order No. 3031 was approximately $22.8 million.
Through the 18 bilateral modifications executed during the OY3 period, the parties
added over $668 million in funding under the OY2 CLIN 2001, resulting in a final
task order value of $691.47 million—a nearly 3,000% increase (R4, tabs 24-40,
41 at 448, 154 at 15145). While modifications added funding under Section B as a
lump-sum “Job,” they added a total of 426 performance days by extending the
task order’s Period of Performance (POP) dates under Section F. The initial task order
and OY2 modifications (culminating in Modification No. P00005) established a POP
of September 20, 2017 through November 2, 2017, representing 44 days of service
ordered during OY2. (R4, Tab 24 at 396-97). The remaining 382 days of service
(covering November 3, 2017 through the final completion date of November 20, 2018)
were added via bilateral modifications executed during OY3. (R4, Tab 41 at 447-49).
Each of these 18 OY3 modifications was executed bilaterally using Standard Form 30
(SF 30). Rather than accessing the OY3 Rate Schedule, each modification explicitly
stated that “[a]ll other terms and conditions remain unchanged” or that all underlying
terms of the task orders “remain unchanged and in full force and effect.” (R4, tabs 13
at 363, 23 at 393-94, 41 at 447; G-021-23).
39. A similar pattern followed for Task Order Nos. 3033 and 3001. Almost all
the modifications, including those issued well into the OY3 performance period,
consistently added funds to CLIN 2001. Notably, when Task Order No. 3001 was
briefly and erroneously funded under the OY3 CLIN, the parties executed a
modification to correct the error and move the funding back to CLIN 2001. WSP
signed all of these modifications. (R4, tabs 45-51, 53, 55-59, 62-65)
40. The parties’ decision to consolidate all hurricane work under the OY2
CLIN was further demonstrated by a series of four bilateral modifications executed
between September and November 2017. Three of these modifications transferred
over $70 million in contract ceiling capacity away from the OY3 CLIN (3001) and
back to the OY2 CLIN (2001) to “ensure that sufficient ceiling is available for
hurricane response missions.” WSP signed each of the modifications. (R4,
tabs 10-12).
41. The fourth and most significant of these modifications occurred on
November 22, 2017, a full month into the OY3 period. On that date, the parties
executed a bilateral modification that increased the contract’s maximum value by
$860 million. The parties had a clear choice to place this new ceiling on the active
OY3 CLIN (3001) or the ostensibly expired OY2 CLIN (2001). They mutually
agreed, in writing, to allocate the entire $860 million increase to CLIN 2001 (R4,
tab 13 at 363-64).
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42. The government’s internal justification for this massive ceiling increase,
approved just before the modification was signed, memorialized its understanding of
this choice, stating: “The current missions were executed and remain active in option
period 2. Accordingly, option periods 3 and 4 will not be utilized . . . .” (R4, tab
G-019 at 16515) (internal USACE approval document).
43. Following these modifications, WSP’s performance aligned with the
decision to use the OY2 CLIN. For more than nine months – from the start of OY3 in
October 2017 through June 2018 – WSP submitted all of its invoices and Daily
Expenditure Reports using the OY2 rates corresponding to CLIN 2001 (R4,
tabs 67-147).
44. On July 23, 2018, nine months after the start of OY3 and after the parties
had bilaterally added hundreds of millions of dollars to the OY2 CLIN, WSP first
communicated to USACE its position that it was entitled to OY3 pricing for work
performed during the OY3 period (R4, tab 148).
45. WSP’s subsequent certified claim, submitted in March 2020, sought over
$14 million, representing the difference between the OY2 rates it had invoiced for
nearly a year and the higher OY3 rates (R4, tab 154 at 15144-45).
B. WSP’s Internal Communications
46. Following the government’s rejection of its claim, WSP’s internal
communications reveal a search for an alternative, post-hoc legal theory to justify
payment at OY3 rates. In one email exchange, WSP personnel discussed attempting
to “invalidate Option Year 2 and the resulting task orders that were issued for
[Hurricane] Maria late September and early October 2017 right at the end of the POP
for CLIN 2001.” (R4, tab G-013 at 16482) The same email acknowledged the
weakness of this position: “assuming there was no notice (fingers crossed), we still
have a problem because we went along with it and didn’t challenge it. The general
contract law principle is that a contractor’s silence, in the face of an improper option
exercise, is acceptance and the contractor is thus estopped from claiming an equitable
adjustment later.” (Id.) Despite this apparent legal hurdle, the email concluded:
“Nonetheless, it would give me an opening to blow smoke and create doubt in their
position” (id.).
47. In an internal email to WSP’s Vice President, Mr. Vince Ricevuto,
Christopher Wolf, WSP’s Senior Vice President, Contracts & Procurements,
characterized this same legal strategy as a “Hail Mary,” writing: “Let’s light a few
candles and hope Josh [the Contracting Officer] missed it. I might have them where it
really hurts.” (R4, tab G-012 at 16480)
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48. In his deposition, Mr. Ricevuto confirmed that WSP’s signatures were
deliberate, stating that he signed only with the express approval of WSP’s
Vice President of Contracts and Procurement (R4, tab G-026 at 16791-92).
49. WSP’s management also contemplated how to justify its nine-month delay
in raising the pricing issue. In a separate exchange discussing the Contracting
Officer’s assertion that WSP was a “large and ‘sophisticated’ company that easily had
the means to catch this mistake and deal with it,” Margaret Burcham, WSP’s
Vice President, commented internally, “And we are, but that’s beside the point.” She
further suggested WSP would need to provide a “good story about the fog of war” to
explain why it had not raised the OY3 pricing issue sooner (R4, tab G-015 at 16488).
50. An action taken five months before WSP first demanded higher OY3 rates
from the government stands in sharp contrast to its subsequent claim. In early 2018,
WSP began actively contacting its own subcontractors to ask them to review and
reduce their rates, which are typically available when a mission transitions from an
initial high-cost “response” period into a lower-cost “sustainment” phase. (R4, tabs
G-007 at 16093, G-008 at 16219, G026 at 16870-71)
DECISION
I. Jurisdiction and Standard of Review
The Board has jurisdiction to entertain this appeal pursuant to the Contract
Disputes Act of 1978, 41 U.S.C. §§ 7101 - 7109. The appeal is before us on remand
from the Federal Circuit, which vacated our prior decision and directed us to conduct a
“fuller and more focused analysis” of the contract’s pricing provisions. WSP USA
Sols. Inc. v. Sec’y of the Army, No. 23-1256, 2025 WL 573242 at *10 (Fed. Cir.
Feb. 21, 2025). Both parties elected to submit this appeal on the record pursuant to
Board Rule 11(a). As the proponent of the claim, WSP bears the burden of proving
entitlement and quantum. Wilner v. United States, 24 F.3d 1397, 1401-02 (Fed. Cir.
1994). Following the remand, both parties submitted additional briefs addressing the
issues raised in the remand.
II. The Contract, Considered as a Whole and as Modified, Is Not Ambiguous as
to Pricing
Our analysis on remand requires us to consider “the contract in its entirety as
modified by the later-issued task orders[,]” WSP USA Sols. Inc., 2025 WL 573242
at *1, and to evaluate “the pricing provisions of the contract accounting for the
modifications made to the task orders.” Id. at *8.
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A written agreement “must be considered as a whole and interpreted so as to
harmonize and give reasonable meaning to all of its parts.” Coast Fed. Bank, FSB v.
United States, 323 F.3d 1035, 1038 (Fed. Cir. 2003) (en banc) (citing McAbee Constr.,
Inc. v. United States, 97 F.3d 1431, 1435 (Fed.Cir.1996)). A contract provision is
ambiguous if it is reasonably susceptible to more than one interpretation. Premier Off.
Complex of Parma, LLC v. United States, 916 F.3d 1006, 1011 (Fed. Cir. 2019). It is
insufficient that the parties merely disagree as to interpretation; each proffered reading
must fall within a “zone of reasonableness.” Metric Constructors, Inc. v. Nat’l
Aeronautics and Space Admin., 169 F.3d 747, 751 (Fed. Cir. 1999).
Critically, the Federal Circuit did not hold the contract ambiguous. Rather, it
held that the Board had not yet established that the contract was unambiguous, because
the Board had analyzed the initial schedule in isolation without considering the
contract as a whole, including its subsequent task order modifications. The Court
explicitly noted that a “fuller and more focused analysis” “might yet lead to a sound
conclusion that the contract as a whole is ultimately unambiguous.” WSP USA Sols.,
Inc., 2025 WL 573242, at *10.
A. The Integrated Contract Text Is Unambiguous
The parties present two competing interpretations of the contract. WSP argues
that pricing is determined by the period of performance, that is, work performed
during the OY3 period must be paid at the higher OY3 rates listed in the Section J
Rate Schedule. The government contends that pricing is fixed based on the task order
issuance date, specifically that work on a task order issued in OY2 is paid at OY2
rates for the duration of the task, regardless of when the work is performed.
When evaluating the original contract sections in isolation, WSP’s position has
a superficial appeal. The contract’s financial structure relies on three distinct
concepts: Rates, Ceiling, and Funding. First, Section F defines distinct, year-long
“periods of performance” that correspond to the “Rates”: the firm-fixed, escalating
prices for services set forth in the Section J Rate Schedule. Second, the narrative in
Section B connects these elements by directing that each annual CLIN’s pricing be “in
accordance with . . . the corresponding rate schedule,” while also using a rollover
mechanism to establish the “Ceiling” (or NTE), which is the maximum value that
could be ordered under a given CLIN. Finally, “Funding” represents the amount of
appropriated dollars the government had formally obligated to the contract at any
given time to pay for the ordered work. (R4, tab 2 at 13-22, 54-56, 91-95). Reading
these sections in isolation, it seems reasonable to conclude that rates should escalate
with the period of performance. It was precisely this facial plausibility, when
confronted with the government’s contrary interpretation, that led the Federal Circuit
to conclude the Board had not yet shown the contract to be unambiguous when the
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Board examined the original schedule alone. WSP USA Sols., Inc., 2025 WL 573242,
at *8-9.
However, WSP’s interpretation becomes legally and textually unsustainable
when the contract is evaluated as an integrated whole, incorporating the bilateral
task order modifications. Each task order specifies the CLIN (listed in Section B of
the contract) under which work is ordered and funded. To determine the applicable
pricing for the extended performance, we look directly to the express text of the
task orders and their bilateral modifications, which constitute binding, integrated terms
of the baseline contract. See Mil-Spec Contractors, Inc. v. United States, 855 F.2d
865, 867-68 (Fed. Cir. 1987) (holding that a signed bilateral modification operates as a
binding amendment to contract terms).
The text of these modifications establishes an unambiguous textual directive:
the parties placed and kept all hurricane-response work and the entire $860 million
ceiling increase under CLIN 2001 (the OY2 line item) (findings 37, 40-42). First, over
$85 million was transferred from CLIN 3001 (OY3) to CLIN 2001 (OY2) during both
OY2 and OY3 to provide sufficient ceiling for hurricane response, with the last such
transfer occurring during OY3 itself (finding 40). Second, the $860 million ceiling
increase on November 22, 2017 – executed a full month into the OY3 period – was
allocated entirely to CLIN 2001, not distributed among CLIN 2001 and CLIN 3001
(finding 41). Third, every modification to the three task orders, including those
executed well into OY3, continued to allocate funds to CLIN 2001 and referenced
OY2 pricing (findings 37 - 41). Fourth, WSP signed each of these bilateral
modifications without objection, without reserving any right to OY3 pricing and
without requesting allocation to CLIN 3001 (findings 39 - 41).
These modifications were formal, written amendments that became integrated
terms of the contract upon bilateral execution. Eighteen of the twenty-three
modifications to Task Order No. 3031 alone were executed after the OY3 performance
period had already begun; those modifications collectively added over $668 million to
Task Order No. 3031, all allocated to CLIN 2001. Most significant is the
November 22, 2017 modification allocating the entire $860 million ceiling increase to
CLIN 2001, executed at a time when performance was actively extending well into
OY3. The contract schedule contained distinct line items – CLIN 2001 (OY2) and
CLIN 3001 (OY3) – providing a clear textual mechanism to designate OY3 rates had
the parties so agreed. Instead, the express written terms of each modification
repeatedly assigned the work and funding to CLIN 2001. Upon bilateral execution,
these written terms became binding, integrated contractual provisions that anchored
work to CLIN 2001 and its corresponding OY2 rate schedule. Mil-Spec Contractors,
Inc., 855 F.2d at 867-68 (recognizing that an executed bilateral modification legally
binds both parties to its written terms). This structural reallocation carries only one
textually sound meaning: the parties explicitly agreed to fund and execute work under
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CLIN 2001 at Option Year 2 rates. Reading the contract as WSP suggests would
render these bilateral transfers nonsensical and surplusage. Because the government’s
interpretation is the only reading that harmonizes the original contract terms with the
express language of the task order modifications, it is the sole reasonable textual
interpretation. In sum, because the bilateral modifications defeat WSP’s reading, the
contract as a whole is unambiguous.
Having established that the integrated contract text is plain on its face, we need
not rely on external regulatory frameworks to resolve this dispute. While the
government contends that FAR 16.505(a)(2) reinforces fixing prices at order issuance,
WSP argues that this FAR provision constitutes unexpressed extrinsic evidence (app.
reply at 2, 6). We need not resolve this regulatory debate. Under standard canons of
construction, where the contract’s own terms, read as a whole and as modified, provide
a single reasonable meaning, the enquiry ends. Coast Fed. Bank, 323 F.3d at 1038.
B. WSP’s Counterarguments
WSP advances several arguments to avoid the textual impact of the
modifications, none of which are persuasive.
First, WSP contends that contract ceiling and NTE figures are non-binding
financial estimates that cannot alter underlying pricing (app. reply at 14, 20). This
argument misapprehends our textual analysis. Our conclusion does not rest upon the
dollar amount assigned to a ceiling; it rests upon the express line-item designation
chosen by the parties in the text of the modification. Section B of the contract
expressly ties each task order’s pricing to the rate schedule of the CLIN under which it
is placed. Because the written terms of the modifications assigned all hurricane-
response work to CLIN 2001, the plain language of Section B mandates that the
CLIN 2001 (OY2) rate schedule governs.
As the Federal Circuit observed, the parties’ continuing transfers of funds into
CLIN 2001, even during OY3, “may inform the Board’s interpretation that task order’s
pricing remains fixed to the CLIN it is issued under” for the duration of performance.
Id. at *6. Read together, the original contract and its bilateral modifications yield a
single, unassailable textual interpretation: work assigned to CLIN 2001 is priced
at OY2 rates.
Second, WSP argues that the modifications only adjusted funding and ceiling,
never the Attachment 1 rate schedule, and therefore carry no implications for pricing.
We recognize, of course, that these are distinct contractual mechanisms serving
different functions. An adjustment to funding does not automatically rewrite the rate
schedule and a ceiling modification does not by itself commit appropriations or alter
underlying rates. See WSP USA Sols. Inc., 2025 WL 573242 at *18, *20 (noting that
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administrative funding transfers to previous CLINs to prevent exceeding NTE ceilings
do not automatically dictate or alter which underlying rate schedule applies). But as
we have explained, our interpretation turns on the line item under which the parties
placed the work, not the dollar amount of the ceiling. Because Section B ties a task
order’s pricing to the rate schedule of its funding CLIN, funding the work under the
OY2 line item (CLIN 2001) via bilateral modification contractually anchored the
pricing to OY2 rates.
Third, WSP points to the contract’s status as a requirements contract and argues
that the defining feature of a requirements contract – the government’s obligation to
fill all its requirements from the contractor during each specified period at the agreed
price, compels the conclusion that rates must follow the period of performance. See
Medart, Inc. v. Austin, 967 F.2d 579, 581 (Fed. Cir. 1992) (holding that requirements
contract calls for the government to buy all its requirements during the contract period
from the contractor, who agrees to provide them at the agreed price). The
requirements-contract framework provides context, but does not dictate how pricing is
applied when a task order issued in one option year generates performance in the next.
The task order modifications issued during OY3 were not new, freestanding orders;
they were administrative vehicles used to extend the duration and funding of the
original task orders already placed under CLIN 2001 during OY2. This distinction is
anchored in the statutory framework of 10 U.S.C. § 3403(e) and 41 U.S.C. § 4103(e),
which are identical and provide that: “A task or delivery order may not increase the
scope, period, or maximum value of the task or delivery order contract under which
the order is issued. The scope, period, or maximum value of the contract may be
increased only by modification of the contract.”
This framework establishes a strict legal hierarchy: just as a task order is
subordinate to its parent contract, a modification to a task order is strictly subordinate
to the foundational terms established when that original order was issued. See TPMC-
Energy Sols. Env’t Servs. 2008, LLC v. United States, 176 Fed. Cl. 56, 123 (2025)
(holding that all task orders and modifications executed under a contract are subject
to the applicable terms and conditions of the contract). Here, the foundational terms
of the task orders were locked in during OY2. When the government modified these
orders during OY3 to add days of service, each modification explicitly directed that
“[a]ll other terms and conditions remain unchanged” (finding 38). WSP’s contention
that 382 days of service were “ordered” during OY3 is of no legal import. See Texas
Instruments, Inc. v. United States, 922 F.2d 810, 816 (Fed. Cir. 1990) (holding that a
negotiated price agreement is final and binding and not subject to unilateral revocation
by the government). Legally, those 382 days were not newly ordered under an OY3
pricing regime; they were simply added to an existing OY2 order whose pricing terms
were statutorily and contractually required to remain unchanged. The government’s
obligation under this requirements contract was to purchase all its emergency power
requirements from WSP during each exercised period; the dispute is over the rate
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applicable to that performance, not whether WSP would be used to fill the
requirement.
Fourth, WSP contends the government’s interpretation is illusory, suggesting it
would allow the government to unilaterally force a contractor to perform at lower rates
(app. br. at 9 n.1; 16). This argument ignores the most critical fact of this case: the
modifications were bilateral. A promise is illusory where one party retains unlimited
discretion. See Torncello v. United States, 231 Ct. Cl. 20, 27 (1982) (holding that “a
party may not reserve to itself a method of unlimited exculpation without rendering its
promises illusory and the contract void . . . .”); see also Crewzers Fire Crew Transp.,
Inc. v. United States, 741 F.3d 1380, 1383 (Fed. Cir. 2014). For this reason, WSP’s
reliance on Stockton East Water Dist. v. United States, 583 F.3d 1344 (Fed. Cir. 2009),
is misplaced. In Stockton, the Government attempted to read an inherent, unilateral
right into the contract to alter its performance obligations based on subsequent shifts in
federal policy. 583 F.3d at 1357. The court rightly rejected that unilateral exculpation
as illusory. Id. Here, the government does not assert such unilateral power. The
government’s discretion was limited by the need to obtain WSP’s signature. By
agreeing to the modifications, WSP provided its assent, making the action mutual and
rendering the illusoriness argument inapplicable.
Fifth, WSP contends that its bilateral signatures cannot be read as a release or
waiver of its claim to OY3 rates, because no modification contained release language
(app. br. at 26). It relies upon CTA Inc., ASBCA No. 47062, 00-2 BCA ¶ 30,947
at 152,754, and Vectrus Sys. Corp., ASBCA No. 63239, 2024 WL 259731 (Jan. 4,
2024). We do not hold that WSP released or waived an accrued claim by signing the
modifications. Instead, the signatures matter because they make the modifications
bilateral terms of the contract, and the contract as so modified fixes pricing to the
CLIN under which the work was funded. The question is one of contract
interpretation, not release.
WSP’s remaining authorities fare no better. WSP’s reliance on RGI, Inc.,
ASBCA No. 38772, 93-2 BCA ¶ 25,581 at 127,401, is unavailing (app. reply at 8).
The Board in RGI addressed whether preliminary, non-binding documents constituted
an “order.” Here, the issue is different: whether a modification to an existing, active
task order constitutes a new, freestanding order. We find that it does not. The
modifications here were expansions of work already underway and their express
statement that “all other terms and conditions remain unchanged” confirms their status
as extensions of the original OY2 orders, not new orders that would trigger a different
pricing schedule.
WSP’s reliance on Symetrics Indus., LLC, ASBCA No. 58001, 15-1 BCA
¶ 35,997, is also misplaced (app. reply br. at 12-13). Symetrics involved hard per-
CLIN quantity maximums that were exceeded when the Contracting Officer (CO)
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issued delivery orders for quantities beyond contractually specified limits without
contemporaneous option-exercise paperwork. 15-1 BCA ¶ 35,997 at 175,856. The
Board held that the CO’s subsequent acceptance of those over-maximum deliveries
constituted ratification, entitling the contractor to the higher next-option rates. Id.
at 175,858. Here, by contrast, there were no analogous per-CLIN quantity maximums
that were exceeded; every ceiling increase and funding augmentation was the subject
of a bilateral modification that expressly allocated the additional capacity to CLIN
2001 and preserved OY2 pricing. Moreover, unlike the contractor in Symetrics, who
merely received and fulfilled unilateral delivery orders, WSP affirmatively executed
dozens of bilateral modifications without reservation, invoiced at the lower OY2 rates
for more than nine months, and only sought higher rates long after the course of
performance had been firmly established by mutual assent. The unauthorized ordering
facts that drove the Symetrics outcome are therefore absent here.
Finally, we note an internal tension in WSP’s position on the relationship
between CLINs and rates. Before the Federal Circuit, WSP argued that Section B
required unexpended amounts remaining from CLIN 2001 to automatically “roll over”
to CLIN 3001, an argument that presupposes CLIN funding is tied to a corresponding
option year’s rates. WSP USA Sols. Inc., 2025 WL 573242 at *8. On remand, WSP
argues that CLIN funding bears no relationship to the applicable rate schedule (app. br.
at 19, 21, 25-26). WSP cannot have it both ways: it cannot argue that the NTE
roll-over provision links CLINs to option-year pricing when that linkage favors its
position, and then argue that CLINs and rates are unrelated when the CLIN-assignment
pattern in the modifications cuts against it. This inconsistency undermines WSP’s
effort to sever the relationship between CLIN assignments and pricing.
We therefore conclude, on the basis of the text of the contract as bilaterally
modified, that the pricing for each task order was established at the time of issuance
and remained fixed for the duration of performance under that order, even where
performance extended into a later option year. Although this textual analysis is
sufficient to resolve the appeal, we address in the alternative the parties’ course of
performance and WSP’s waiver, each of which independently confirms the
government’s interpretation.
III.The Parties’ Course of Performance Establishes OY 2 Pricing
The parties’ course of performance is not necessary to interpret the plain
meaning, but it independently and powerfully confirms it and is itself among the most
probative evidence of the meaning the parties gave their contract. See Metropolitan
Area Transit, Inc. v. Nicholson, 463 F.3d 1256, 1260 (2006) (holding that “the parties’
own course of performance is highly relevant to contract interpretation”); Jemison &
Partners, Inc., ASBCA No. 62928, 23-1 BCA ¶ 38,249 at 185,737; see also Aegis Def.
Services, LLC, ASBCA No. 59082, et al., 17-1 BCA ¶ 36,915 at 179,856, citing
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Blinderman Constr. Co. v. United States, 695 F.2d 552, 558 (Fed. Cir. 1982)
(contemporaneous construction of an agreement prior to dispute is entitled to great
weight). Indeed, the parties’ course of performance is completely consistent with the
language of the contract as modified: both parties treated OY2 pricing as governing
all hurricane response work, and did so consistently, bilaterally, and for an extended
period. The bilateral modifications allocating the work to CLIN 2001, WSP’s
invoicing at OY2 rates for more than nine months, the parties’ joint correction of an
erroneous CLIN 3001 funding assignment, and WSP’s own contemporaneous internal
communications together demonstrate a shared contemporaneous understanding that
OY2 pricing governed the hurricane response work. We address each in turn and then
respond to WSP’s counterarguments.
A. Internal Documents and Contemporaneous Intent
Both parties held an identical understanding of the modifications when the
modifications were executed. Government procurement documents supporting the
November 2017 ceiling increase specifically noted that the hurricane missions “remain
active in option period 2” and that “option periods 3 and 4 will not be utilized”
(finding 42). WSP’s Vice President, Mr. Ricevuto testified that WSP’s execution of
each bilateral modification adding funds to option period 2 was deliberate and
authorized by senior executive management (finding 48). Although unilateral internal
records cannot alter the plain meaning of the contract, here, the contemporaneous
evidence, prior to the dispute, demonstrates a shared understanding that the task orders
would be funded using option period 2. See Aegis, 17-1 BCA ¶ 36,915 at 179,856.
B. WSP’s Invoicing and Daily Expenditure Reports
WSP’s invoicing conduct further confirms our reading of the modified contract.
For more than nine months, from the inception of the task orders in September 2017
through at least July 2018, WSP submitted every invoice and every Daily Expenditure
Report (DER) applying the OY2 unit rates from Attachment 1 to calculate amounts
due, and the government reviewed those DERs for accuracy. This detail matters
because WSP argues that CLIN assignments reflect only funding mechanics, not
pricing decisions (app. br. at 19-22). Even accepting that framework, the DER record
refutes it: WSP was not simply booking costs to OY2 accounts, it was calculating
what it was owed using OY2 rates. A party that genuinely believed it was being
systematically underpaid by approximately three percent on every invoice would
reasonably raise the issue promptly. WSP did not assert any claim to OY3 pricing
until July 23, 2018, more than nine months after OY3 began, by which point WSP had
signed twenty-three modifications and submitted dozens of invoices without a word of
protest (findings 37, 44).
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C. The Task Order No. 3001 Correction
One episode is particularly telling. When Task Order No. 3001’s funding was
initially obligated to CLIN 3001 – exactly the CLIN assignment that would have been
consistent with WSP’s current position – the parties executed a modification to correct
the error, moving the funds back to CLIN 2001. WSP signed that correction without
objection. (Finding 39) The fact that WSP characterized CLIN 3001 funding as an
error requiring correction, rather than as a windfall to be preserved, further confirms
the parties’ intentions.
D. WSP’s Internal Communications
WSP’s own internal communications foreclose any argument that the foregoing
conduct was inadvertent or the product of confusion. Following USACE’s rejection of
its claim, WSP’s personnel acknowledged that WSP “went along with it and didn’t
challenge it” and recognized that “the general contract law principle is that a
contractor’s silence, in the face of an improper option exercise, is acceptance.”
(Finding 46) An internal WSP email to its Vice President, Mr. Ricevuto, described the
pursuit of OY3 pricing as a “Hail Mary,” candidly conceded that USACE’s
characterization of WSP as a large and sophisticated company that “easily had the
means to catch this mistake” was accurate -- “And we are” – and suggested that WSP
would need a “good story about the fog of war” to justify its prolonged silence
(findings 46-47). This language does not demonstrate a contemporaneous
interpretation of the contract to require OY3 pricing: instead, it is the language of a
party that understood OY2 pricing applied and later devised a litigation strategy to
seek additional compensation. Cf. Perry & Wallis, Inc. v. United States, 427 F.2d 722,
725 (Ct. Cl. 1970) (recognizing that a party who performs without protest while
knowing the other party’s interpretation is boun