H.T. Johnson, Acting Secretary of the Navy v. All-State Construction, Inc.
Court of Appeals for the Federal Circuit
1Opinion of the Court
DYK, Circuit Judge.
The Secretary of the Navy (“the Navy”) appeals the decision of the Armed Services Board of Contract Appeals (“Board”) in favor of All-State Construction (“All-State” or “the contractor”). All-State Constr., Inc., ASBCA No. 50,586, 02-1 B.C.A. (CCH) ¶ 31,794, at 157,019-21 (Feb. 21, 2002). This case presents the question of whether the Navy was entitled to withhold progress payments from All-State. The Navy offers two justifications for the withholding: (1) that the government is entitled to withhold progress payments when a default termination is imminent; and (2) that the…
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