The Centech Group, Inc.v. Getronicswang Co., LLC

2002 WL 479767 (2002)

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Nature of the Case

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Facts

P was awarded a contract to convert Navy personnel records into digital form. P, in turn, awarded I-NET a subcontract to design and develop a data conversion system. Eventually, P became delinquent in its performance of the Navy contract. P and I-NET reached an understanding wherein I-NET agreed to complete the prime contract on behalf of P and receive the proceeds of that contract. I-NET agreed to provide P with $20 million in bid/teaming opportunities over a two-year period. I-NET also agreed to award subcontracts to P in the amount of $9.25 million over a three-year period. The parties sought a novation of the contract. The Navy, P, and I-NET could not agree to either a novation or a substantial restructuring. P and I-NET then entered into a new understanding. I-NET would assume full liability for the Navy prime contract. It also provided a joint release with respect to any prior acts, including the Original modification. It also provided that the prime contract would be terminated for the 'convenience of the government' and I-NET would enter into a new contract with the Navy which would incorporate the terms of the prime contract. I-NET also agreed to assume operational oversight responsibility for the records conversion project. P agreed to submit an invoice of costs to the Navy. I-NET agreed to provide teaming and bidding opportunities in the amount of $10 million and contract support in the amount of $2 million. P sued I-NET for failure to provide the teaming agreements and contracts. D motioned for summary judgment.