Liquidated Damages.pdf

This is a Memorandum justifying liquidated damages for Federal Bureau of Prisons contract B&F Project 26Z2BC3 to replace rooftop HVAC units at FCI Elkton in Lisbon, Ohio.

The memorandum establishes a liquidated damages clause of $1,227.91 per calendar day for the contract, which has an estimated completion period of 90 calendar days. The justification is based on the critical nature of timely HVAC unit replacement to maintain facility operations at full capacity. The daily damages amount was calculated by aggregating the estimated costs of Government oversight and administration during any performance delay, including: one full-time Contracting Officer Representative at $97.85 per day; one Contracting Officer's Representative at $207.05 per day; two HVAC Worker Supervisors at $420.86 per day each; and one Correctional Officer at $81.29 per day. All daily rates include 20 percent benefits and are based on 2026 Federal Salary and Wages table data. The damages rate was determined reasonable under FAR 11.502(b), with the actual losses calculated based on personnel costs that would be incurred if the contractor fails to complete the work on schedule.