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The Armed Services Board of Contract Appeals has rejected the U.S. Air Force’s motion to dismiss a $3.1 million claim related to two rental forklifts that were allegedly not returned from an Afghanistan base. The claim was filed by Peace Ambition Construction Co. under a contract valued at approximately $29,000.

The Air Force contended that the board lacked jurisdiction, arguing the dispute involved a subcontractor agreement following the government’s termination of the original contract. However, the board disagreed, affirming that the claim directly pertains to the contract between Peace Ambition and the government.

In the decision, Judge Robyn L. Hamady, joined by Judges Owen C. Wilson and Michael N. O’Connell, emphasized that Peace Ambition’s claim covers damages for the replacement cost of the forklifts and accrued rental fees, both tied to the government contract. The board noted that the government had conceded entitlement to $360,000 for the lost forklifts.

The original firm fixed-price contract was awarded in November 2020 to supply two 30,000-pound capacity forklifts for 20 days. Following contract modifications and the contract’s termination for convenience in mid-December, Peace Ambition entered an agreement to either return the forklifts or cover replacement costs totaling $360,000, along with daily rental fees.

Despite efforts to recover the equipment from December 2020 through August 2021, Peace Ambition was forced to flee Afghanistan due to Taliban threats. The company submitted claims escalating from $1.4 million in April 2022 to $3.1 million by September 2024, reflecting additional rental costs.

The board underscored that jurisdiction is based on the claim submitted to the contracting officer, dismissing arguments made in subsequent correspondence. Peace Ambition is represented by J. William Peironnet IV of the Law Offices of J. William Peironnet. The Air Force is represented by Caryl A. Potter III and Isabelle P. Cutting.

This case is formally recognized as Appeals of Peace Ambition Construction Co. Under Contract No. H92237-21-P-3013, ASBCA numbers 63938 and 64024