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Contracts Keyed to Kuney
DJ Manufacturing Corp. v. United States
Citation:86 F.3d 1130 (1996).
In January 1991, the Government offered DJ a contract to produce and deliver 283,695 field packs for troops participating in Operation Desert Storm. The solicitation documents sent to DJ included a delivery schedule as well as a liquidated damages clause in the event of late delivery. On February 14, 1991, the parties entered into a contract that provided for liquidated damages of 1/15 of a percent of the contract price per day for a delayed delivery (two percent per month). The total contracted price was $8,493,828. DJ missed several of its delivery deadlines and the Government withheld $663,266.92 (eight percent of the contracted price).
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