Opinion ID: 4777078
Heading Depth: 2
Heading Rank: 2

Heading: The NPCC Contract, Breach, and Tender

Text: Agreement Just one of the ICSP-bonded contracts is relevant to this appeal. In March 2012, LTC entered into a contract with the United States to construct the National Police Command Center in Afghanistan (the “NPCC Contract”). The contract price was approximately $55 million. Shortly thereafter, LTC executed a performance bond and payment bond, with ICSP as surety, for the NPCC Contract.1 1 Another ICSP-bonded contract, for the construction of the Al Dhafra Air Base in the United Arab Emirates, was also at issue 5 In January 2014, the United States terminated LTC’s right to proceed under the NPCC Contract due to default. The United States then demanded that ICSP perform its suretyship obligations pursuant to the bonds for the NPCC Contract. A performance bond surety (like ICSP) generally may satisfy its obligation to the government on a defaulted contract in a number of ways, including “taking over and completing performance” or “assuming liability for the government’s costs in completing the contract which are in excess of the contract price.” Ins. Co. of the W. v. United States, 243 F.3d 1367, 1370 (Fed. Cir. 2001). To satisfy its obligations here, ICSP entered into an August 2014 contract (the “Tender Agreement”) with the United States and a new contractor, Macro Vantage Levant JLT (“MVL”), to complete the unfinished work under the NPCC Contract. MVL agreed to finish the construction work, and ICSP agreed to pay any “excess costs” for that performance — meaning any amount due beyond the funds that the United States had set aside based on the original contract price for the NPCC Contract. The Tender Agreement expressly provided that the “Surety’s [ICSP’s] bonds shall in the Bankruptcy Court and the District Court proceedings. ICSP has forfeited any arguments that it might have regarding the Al Dhafra contract, as ICSP’s briefs do not make any reference to that contract, let alone any arguments regarding its significance. See In re Wettach, 811 F.3d 99, 115 (3d Cir. 2016) (holding that arguments not developed in an appellant’s opening brief are forfeited). 6 remain in force and effect during the performance of Work by [MVL] up to the complete expenditure of the penal sum of the Performance Bond.” A364.