The Armed Services Board of Contract Appeals has dismissed an appeal filed by Texas Global Distribution LLC concerning the termination of a contract with the U.S. Air Force. The court ruled that Texas Global's appeal was untimely, coming 91 days after the company received the termination notice. This decision impacts Texas Global and highlights the strict deadlines contractors face in appealing government decisions.

Texas Global was contracted to provide emergency response vehicles at Hurlburt Field, Florida, but the contract was terminated for cause due to the company's failure to provide required insurance. The board's ruling underscores the importance of adhering to the timelines set forth in the Contract Disputes Act, which governs such appeals.

Background

Texas Global Distribution LLC entered into a contract with the U.S. Air Force on March 28, 2024, to supply emergency vehicles for Hurlburt Field. The contract included a one-year base period and two six-month option periods. However, issues arose when Texas Global's operations manager, Hayder Alhasani, informed the Air Force on April 18, 2025, that the company could not renew the necessary vehicle insurance and requested the contract be terminated without cause.

Following a series of communications between Texas Global and the Air Force, the government issued a Notice to Show Cause on May 1, 2025, and subsequently a Termination Notice on May 20, 2025. This notice indicated that Texas Global was being terminated for cause due to its failure to provide the required insurance, a crucial element of the contract.

After receiving the Termination Notice, Texas Global filed an appeal with the Armed Services Board of Contract Appeals on August 19, 2025, which was one day late according to the board’s rules. The appeal was officially docketed as ASBCA No. 64333 on August 20, 2025.

The Ruling

The Armed Services Board, led by Administrative Judge David M. Marquez, ruled in favor of the Air Force's motion to dismiss Texas Global's appeal on the grounds of untimeliness. The court determined that the appeal was filed 91 days after Texas Global received the termination notice, exceeding the 90-day limit set by the Contract Disputes Act.

The court ruled, "It is well-settled that the Board lacks jurisdiction over any appeal filed outside of [the] 90-day appeal period, which is statutory and cannot be waived by the Board." This decision was based on the understanding that the termination notice constituted a final decision by the contracting officer.

The court found that the termination notice met the requirements for a contracting officer's final decision, which included a description of the dispute, reference to the contract terms, and a clear statement of the decision. The notice explicitly informed Texas Global of its appeal rights, thereby commencing the 90-day appeal period.

Impact

The dismissal of Texas Global's appeal serves as a reminder of the strict deadlines imposed on contractors when appealing decisions made by government agencies. This ruling not only affects Texas Global but also sets a precedent for future cases where contractors may face similar circumstances. It emphasizes the necessity for contractors to be vigilant about timelines and the importance of understanding the legal implications of any communications received from contracting officers.

Furthermore, the court noted that Texas Global's appeal included numerous misleading statements that appeared to be generated by artificial intelligence, highlighting the potential pitfalls of using AI in legal filings. The board stated, "The party is responsible to ensure that they accurately reflect the facts and the law," underscoring the need for accuracy in legal documentation.

What’s Next

Texas Global's options for appeal are limited, as the board's decision to dismiss the case is final. Details were not available in the court filing regarding any related cases or potential further actions by Texas Global.