THE CENTECH GROUP, INC.V. GETRONICSWANG CO., LLC
2002 WL 479767 (2002)
NATURE OF THE CASE: Gertronicswang (D) filed a motion for summary judgment in Centech's
(P) suit for breach of contract.
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.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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