The Use of Estimates in Calculating a "Sum Certain" Does Not Automatically Disqualify a Claim

"Sum certain" is a legal term that refers to a fixed or specific amount of money, without any room for ambiguity. In the context of a claim against the Government, the claim must contain facts sufficient to permit the Government to understand the basis upon which liability is claimed. The claim shall also contain a specific amount for which the claim can be settled (i.e. sum certain) and the facts supporting the amount.

The ASBCA (Armed Services Board of Contract Appeals) has, over the years, listed a  number of qualifications that defeat the "sum certain" requirement. These include nomenclatures such as:

• approximately
• at least
• no less than
• well over
• in excess of

Finding these qualifiers will render a claim null and void because there is no sum certain indicated.

Where does "estimated" fall within the sum certain

Estimated is not among the fatal qualifications listed above. The Board (i.e. ASBCA) has frequently accepted estimates in support of a sum certain. The Board has repeatedly held that the use of estimated or approximate costs in determining the value of a claim is permissible so long as the total overall demand is for a sum certain.

Recently, in a case brought by Fluor Federal Solutions, LLC (see ASBCA No. 61353), the Board ruled that Fluor's use of estimates that included a detailed explanation of how the estimate was calculated was an "unequivocal sum certain". This reiterates a previous decision by the Board in ASBCA No. 60367, Government Services Corp, where they also ruled that the use of estimated or approximate costs in determining the value of a claim was permissible as long as the total overall demand is for a sum certain.

Estimates are fine so long as they are supported and the resulting claim is for a sum certain.

Read the recent ASBCA decision concerning Fluor Federal Solutions here.