top of page

Can A "Sum Certain" Be Found in the Claim?

Writer's picture: R.D. Lieberman,ConsultantR.D. Lieberman,Consultant

Most of this blog’s readers know that in order to qualify under the Contract Disputes Act as a claim, the claim must:

1. Be a written demand or written assertion, seeking

2. As a matter of right

3. The payment of money in a “sum certain,”

4. The adjustment of contract terms, or

5. Other relief arising from a contract AND

6. Be certified if the amount exceeds $100,000

FAR 2.101.


Most of that definition is self explanatory, but what exactly is a “sum certain.” It is a clear and unequivocal statement that gives the contracting officer adequate notice of the basis and amount of the claim. Creative Management Servs, LLC v. United States, 989 F.3d 955, 963 (Fed. Cir. 2021). Simply stated, either an exact amount must be included in the claim for which the payment is sought (e.g. $100,021), or the contracting officer must be able to compute the exact amount from the information contained in the claim.


In The Heirs of Bahawouddin, Son of Neyaz Mohammad v. Dept of State, CBCA 7135, October 26, 2022, the Department of State sought to dismiss a claim involving a contract for lease of residential property in Kabul, Afghanistan because the claim allegedly did not include a “sum certain.”


The claim demanded payment of $500,000 for unpaid rent and damages from demolition of structures on the property. The claim sought “payment of rent in the amount of $10,000 per month from March 1, 2017 until paid. The State Department denied this claim, arguing that the “until paid” language was imprecise and that the claim sought “an open ended, unascertainable amount of rent” and therefore failed to meet the sum certain requirement. For that reason, the Department of State stated that the Board lacked jurisdiction because the claim did not meet the legal requirements.


On this ground of appeal and the State Department’s motion to dismiss, the Board held that the claim did contain a “sum certain.” Specifically, “the sum certain was ascertainable at the time the claim was submitted---the monthly rent of $10,000 per month multiplied by the number of months since the State Department had ceased rent payments, plus $500,000 for the alleged damage to the property.”


Takeaway. Even though a “sum certain” was not explicitly set forth in the claim, it was clearly ascertainable at the time of claim submission if the Contracting Officer merely “did the math.” On this ground, the Board rejected the State Department’s request to dismiss the appeal for lack of jurisdiction.


For other helpful suggestions on government contracting, visit:

Richard D. Lieberman’s FAR Consulting & Training at https://www.richarddlieberman.com/, and Mistakes in Government Contracting at https://richarddlieberman.wixsite.com/mistakes.

8 views0 comments

Recent Posts

See All

Comments


The website of Richard Donald Lieberman, a government contracts consultant and retired attorney who is the author of both "The 100 Worst Mistakes in Government Contracting" (with Jason Morgan) and "The 100 Worst Government Mistakes in Government Contracting." Richard Lieberman concentrates on Federal Acquisition Regulation (FAR) consulting and training, including  commercial item contracting (FAR Part 12), compliance with proposal requirements (FAR Part 15 negotiated procurement), sealed bidding (FAR Part 14), compliance with solicitation requirements, contract administration (FAR Part 42), contract modifications and changes (FAR Part 43), subcontracting and flowdown requirements (FAR Part 44), government property (FAR Part 45), quality assurance (FAR Part 46), obtaining invoiced payments owed to contractors,  and other compliance with the FAR. Mr.Lieberman is also involved in numerous community service activities.  See LinkedIn profile at https://www.linkedin.com/in/richard-d-lieberman-3a25257a/.This website and blog are for educational and information purposes only.  Nothing posted on this website constitutes legal advice, which can only be obtained from a qualified attorney. Website Owner/Consultant does not engage in the practice of law and will not provide legal advice or legal services based on competence and standing in the law. Legal filings and other aspects of a legal practice must be performed by an appropriate attorney. Using this website does not establish an attorney-client relationship. Although the author strives to present accurate information, the information provided on this site is not guaranteed to be complete, correct or up-to-date.  The views expressed on this blog are solely those of the author. FAR Consulting & Training, Bethesda, Maryland, Tel. 202-520-5780, rliebermanconsultant@gmail.com

Copyright © 2024 Richard D. Lieberman

bottom of page