Wiggle Room In DOD Vehicle Lease Not Big Enough to Drive a Truck Through! – A Case Study

The Overseas Logistics Group (“OLG”) sued the Department of Defense for breach of contract in the U.S. Court of Federal Claims over a contract to lease vehicles to DoD. The contract originally required the government to repair the vehicles to the condition in which it had received them.  After a modification, the contract then required the government to either pay for repairs resulting from normal wear and tear or, if repairs would cost 75% or more of the actual value of the vehicle, to reimburse OLG for the actual value of the vehicle, less depreciation. OLG claimed that the government breached the contract by returning leased vehicles to OLG in damaged condition, and neither repaired them nor paid OLG for the cost of repairs. Additionally, … Continue reading