BOARD OF CONTRACT APPEALS U.S. GOVERNMENT PRINTING OFFICE WASHINGTON, DC 20401 In the Matter of ) ) the Appeal of ) ) BANTA COMPANY ) Docket No. GPO BCA 03-91 Jacket Nos. 245-004 and 245-006 ) Purchase Orders 82047 and 82137 ) DECISION AND ORDER This appeal, timely filed by Banta Company, Curtis Reed Plaza, P. O. Box 60, Menasha, Wisconsin 54952 (hereinafter the Appellant or Contractor), is from the final decision, dated November 27, 1990, of Contracting Officer Jack G. Marken (hereinafter Contracting Officer), of the U.S. Government Printing Office, North Capitol and H Streets, NW., Washington, DC 20401 (hereinafter Respondent or GPO or Government), denying the Appellant's separate claims for additional compensation in the amounts of $103,025.13 on Purchase Order 82047, Jacket No. 245-004, and $18,241.00 on Purchase Order 82137, Jacket No. 245-006. Instead, the Contracting Officer concluded that the Appellant owed the Government $54,505.00 and 32,219.00, respectively, and he issued the appropriate contract modifications for the recovery of those amounts (R4 File, Tabs UU and WW).1 For the reasons which follow, the Contracting Officer's decision is MODIFIED, and the Appellant's claim is ALLOWED to the fair and reasonable amount of $72,830.00. BACKGROUND The facts in this appeal are uncontroverted and are set forth here essentially as stipulated by the parties. See, Banta Company, GPO BCA 03-91, Stipulation of Undisputed Facts, dated October 9, 1991 (hereinafter Joint Stipulation).2 1. On June 16, 1989, GPO awarded the Appellant Jacket No. 245-004 under Purchase Order No. 82407 (R4 File, Tab E). The contract covered by Jacket No. 245-004 required the Appellant to produce 4,701,000 copies of an 88-page Internal Revenue Service (hereinafter IRS) tax booklet at a contract price of $727,902.00, with an "added rate" to be paid for additional copies ordered. Joint Stipulation, � 2, pp. 1-2. 2. On July 5, 1989, GPO awarded the Appellant Jacket No. 245-006 under Purchase Order No. 82137 (R4 File, Tab J). The contract covered by Jacket No. 245-006 required the Appellant to produce 911,000 copies of a 120-page IRS tax booklet at a contract price of $222,986.00, with an "added rate" to be paid for additional copies ordered. Joint Stipulation, � 3, p. 2. 3. The pre-production samples of the tax booklets, which were required under the specifications in both Jacket No. 245-004 and Jacket No. 245-006, were timely submitted to GPO by the Contractor in August 1989, and were fully approved by the Respondent in September 1989 (R4 File, Tabs N, P and R).3 Joint Stipulation, �� 4, 5, p. 2. 4. On September 21, 1989, GPO issued a Printing Specification Change Order (PSCO) which directed the Appellant to reduce the number of pages per booklet to be printed under Jacket No. 245-006 from 120 pages to 112 (R4 File, Tab Q).4 Joint Stipulation, � 6, p. 2. 5. On September 25, 1989, GPO issued another PSCO which directed the Appellant to reduce the number of pages per booklet to be printed under Jacket No. 245-004 from 88 pages to 80 (R4 File, Tab S).5 Joint Stipulation, � 7, p. 3. 6. The relevant contract documents-Jacket Nos. 245-004 and 245-006, and Purchase Orders 82047 and 82137-incorporate the standard GPO "Changes" clause by reference. Joint Stipulation, � 8, p. 3; Exhibit A. See, GPO Contract Terms, Solicitation Provisions, Supplemental Specifications, and Contract Clauses, GPO Pub. 310.2, Effective December 1, 1987 (Rev. 9-88), Contract Clauses, � 4 (hereinafter GPO Contract Terms). The "Changes" clause provides: (a) The Contracting Officer may at any time, by written order, and without notice to the sureties, if any, make changes within the general scope of this contract in any one or more of the following: (1) Drawings, designs, or specifications when the supplies furnished are to be specially manufactured for the Government in accordance with the drawings, designs, or specifications. (2) Method of shipment or packing. (3) Place of delivery. (b) If any change causes an increase or decrease in the cost of, or the time required for, performance of any part of the work, whether or not changed by the order, the Contracting Officer shall make an equitable adjustment in the contract price, the delivery schedule, or both, and shall modify the contract. (c) The contractor must submit any "proposal for adjustment" (hereinafter referred to as proposal) under this article within 30 days from the date of receipt of the written order. However, if the Contracting Officer decides that the facts justify it, the Contracting Officer may receive and act upon a proposal submitted anytime before final payment. (d) If the contractor's proposal includes the cost of property made obsolete or excess by the change, the Contracting Officer shall have the right to prescribe the manner or the disposition of the property. (e) Failure to agree to any adjustment shall be a dispute under article 5 "Disputes." However, nothing in this article shall excuse the contractor from proceeding with the contract as changed. 7. After the Appellant received the PSCOs from the Respondent, it advised GPO that the changes in specifications under each Jacket and Purchase Order would require a change in press configuration and could require additional paper stock to be ordered, and as a result of these changes, the Contractor anticipated an increase in its costs (R4 File, Tabs U and V).6 Joint Stipulation, � 9, p. 3. 8. In response, the Respondent advised the Appellant to submit documentation of those costs to the Contracting Officer, so that GPO and the Contractor could negotiate an equitable adjustment in the contract prices (R4 File, Tabs X and Y). Joint Stipulation, � 10, p. 3. 9. The Appellant printed the tax booklets required by Jacket Nos. 245-004 and 245-006 and Purchase Orders 82047 and 82137 in conformity with the revised specifications. The Contractor performed all of the work required under both contracts in a timely manner and to the complete satisfaction of GPO. Joint Stipulation, � 11, pp. 3-4. See, GPO Contract Terms, Contract Clauses, � 4.(e). 10. The changes in the specifications required by GPO under Jackets Nos. 245-004 and 245-006 and Purchase Orders 82047 and 82137, resulted in additional expenses for the Appellant which it would not otherwise have incurred. Because of these changes, approximately 50 percent of the paper stock which had already been manufactured for each Jacket Number would not fit the new press and forms configurations necessary to print booklets conforming to the revised specifications. In order to meet the changed specifications and complete the contract work in a timely and completely satisfactory manner, the Contractor revised its production plans and "slit" the already manufactured paper stock.7 The parties agree that the new press configurations required to print the tax booklets under each Jacket Number in conformity with the Government- revised specifications, increased the manufacturing costs of the Appellant. Joint Stipulation, � 12, p. 4. 11. The Government-furnished camera copy for Jacket No. 245-004 was delivered to the Appellant late. The Contractor was without any fault or negligence for this late delivery of the camera copy. Because of the late arrival of camera copy for Jacket No. 245-004, Appellant also incurred increased costs (R4 File, Tab W).8 Joint Stipulation, � 13, p. 4. 12. The Appellant submitted properly certified claims for an equitable pricing adjustment resulting from the changes in specifications under each Jacket, and the late arrival of camera copy under Jacket No. 245-004. For Jacket No. 245-004, the Contractor certified an equitable pricing adjustment claim totaling $103,025.13 for the specification changes and the late delivery of the Government-furnished camera copy (R4 File, Tabs U, W, and AA). For Jacket No. 245-006, an equitable pricing adjustment of $18,241.00 was sought by the Appellant (R4 File, Tabs V and Z). Joint Stipulation, � 14, pp. 4-5.9 13. On January 22, 1990, the Contracting Officer wrote to GPO's Office of the Inspector General (hereinafter OIG) and asked that an audit be conducted on both of the Appellant's claims (R4 File, Tab BB). Joint Stipulation, � 15, p. 5. 14. As part of the Respondent's evaluation of the Appellant's two equitable pricing adjustment claims, GPO's Plant Planning Division (hereinafter the PPD) reviewed the Contractor's original and revised production plans under each Jacket. The PPD confirmed that the actions taken by the Appellant to accommodate the changes in the specifications under both Jackets and the late arrival of camera copy under Jacket No. 245-004 were reasonable and necessary under the circumstances (R4 File, Tabs EE, FF, HH and KK).10 Joint Stipulation, � 16, p. 5. 15. On October 23, 1990, the OIG issued its audit report concerning both of the Appellant's equitable adjustment claims (R4 File, Tab PP) (hereinafter OIG Audit Report). Among other things, the OIG Audit Report found the following: a. The Appellant had submitted a revised claim of $112,106.00 under Jacket No. 245-004, including an equitable adjustment of $60,825.00 in costs for press changes due to the reduction in page count, and an equitable adjustment of $51,281.00 in the contract price because of excessive press downtime and lost paper sales when GPO furnished the camera copy late. However, on April 9, 1990 and June 11, 1990, respectively, the Contractor had written to the Contracting Officer and clarified that it actually claimed an equitable adjustment of $103,025.13 under Jacket No. 245-004 (R4 File, Tabs CC and MM); and b. The Appellant had submitted a revised equitable adjustment claim of $18,241.00 under Jacket No. 245-006, involving $6,732.00 in costs due to press changes-i.e., the cost of unusable paper stock when the paper roll sizes were changed to fit the new press and forms configuration-and $11,509.00 in costs for lost press sales.11 Joint Stipulation, � 17, pp. 5-6. 16. The OIG auditors used two methods to evaluate the Appellant's proposals and recommend equitable pricing adjustments in connection with Jackets Nos. 245-004 and 245-006. These methods were respectively called the "specific cost" ("actual cost") method and the "total cost" method.12 Joint Stipulation, � 18, p. 6. 17. Under the "specific cost" method, the OIG auditors analyzed the specific items claimed by the Appellant to determine if they were allowable, reasonable, and allocable to the changes in the specifications for Jacket Nos. 245-004 and 245-006, respectively, and to the late arrival of camera copy under Jacket 245-004.13 Joint Stipulation, � 19, p. 6. 18. Under the "specific cost" method, the OIG auditors: a. "Questioned" $53,279.00 of the Appellant's revised claim of $112,106.00 under Jacket No. 245-004, and accordingly recommended that the Appellant be awarded an equitable price adjustment of $58,827.00; and b. "Questioned" $7,365.00 of the Appellant's claim of $18,241.00 under Jacket No. 245-006, and accordingly recommended that the Appellant be granted an equitable pricing adjustment of $10,876.00.14 Joint Stipulation, � 20, pp. 6-7. 19. Under the "total cost" method, the OIG auditors claimed to have compared the Appellant's anticipated financial position before the changes in specifications and the late arrival of camera copy to the Contractor's actual financial position after the contracts were performed, in order to determine the resulting financial impact.15 Joint Stipulation, � 21, p. 7. 20. Under the "total cost" method, the OIG auditors recommended that GPO award itself a credit totalling $86,724.00, reflecting equitable adjustments reducing the contract prices under Jacket Nos. 245-004 and 245-006. Joint Stipulation, � 22, p. 7. 21. On November 27, 1990, the Contracting Officer issued his "Final Decision Notice" informing the Appellant that he would issue contract modifications for Jacket Nos. 245-004 and 245-006 to recover the credits due GPO from the Contractor in the amounts of $54,505.00 and $32,219.00, respectively,16 as recommended by the OIG auditors under the "total cost method" (R4 File, Tab UU).17 Joint Stipulation, � 23, p. 7. 22. On December 18, 1990, the Contracting Officer issued the contract modifications for Jackets Nos. 245-004 and 245-006, respectively (R4 File, Tab WW). In addition, the Appellant received a notice from GPO, dated December 19, 1990, stating that the Respondent had deducted the $86,724.00 in credits due to GPO from an invoice submitted the Contractor on a different, undisputed contract-Jacket No. 265-209-printed approximately a year after Jacket Nos. 245-004 and 245-006. Joint Stipulation, � 24, p. 8; Exhibit B. ISSUES PRESENTED The ultimate question in this appeal is whether or not the Appellant is entitled to an equitable adjustment because of the changes ordered by the Respondent, and if so, how much? However, resolution of that issue depends on the answer to four other questions, namely: 1. Can two contracts which were originally bid at a loss be converted into a contract for profit, on the one hand, and a substantially reduced loss contract, on the other hand, by means of an equitable adjustment arising from deductive changes ordered by the Government? Stated otherwise, what is the impact of the so-called "loss bid" rule on the Appellant's equitable adjustment claim? 2. Can the Appellant's claim for delay and downtime costs resulting from the Government's late delivery of camera copy for Jacket No. 245-004, be considered under the "Changes" clause? 3. Did the Contracting Officer apply the correct cost accounting method to the Appellant's equitable adjustment claim, or should some other approach have been used instead? 4. What is the appropriate amount of the Appellant's equitable adjustment or the Respondent's credit, as the case may be? POSITIONS OF THE PARTIES18 The crux of the Appellant's position in this case is that the standard "Changes" clause entitles it to a full recovery of the cost increases flowing from the changes to the specifications. App. Brf., p. 1. First, the Appellant contends that equitable adjustment principles allow it to recover a reasonable profit on the changed work, regardless of whether or not the contract was originally bid at a loss. App. Brf., p. 3 (citing, Keco Industries, Inc., ASBCA Nos. 15184, 15547, 72-2 BCA � 9,576, mot. for reconsid. denied, 72-2 BCA � 9,633) (hereinafter Keco Industries). Thus, the Contractor objects to the OIG auditors' comparison of the Appellant's "financial position" before the changes with its actual "financial position."19 App. Brf., p. 6. The Appellant argues that their methodology is fatally defective because it assumes that any improvement in the Contractor's financial performance resulted from the changes to the two contracts. Id. Instead, the Appellant believes that because the auditors also recognized that the changes led to cost increases which would not otherwise have occurred, then the improvement in financial performance arose from other factors, and it is entitled to retain the benefit of its economies.20 App. Brf., p. 7 (citing, Turner Affidavit, � 24); App. R. Brf., p. 4. Second, the Appellant contends that it is entitled to be reimbursed for the Government's delay in delivering the camera copy for Jacket No. 245-004. App. Brf., p. 1. Relying on language in the "Schedule" specification of the contract, the Contractor argues that the Government's delay is a "change," and not a breach of contract. App. R. Brf., p. 4. See, R4 File, Tab A, p. 4 (Schedule), Tab G, p. 4 (Schedule). In the Appellant's opinion, this contract specification takes precedence over the general clause in GPO Contract Terms-the "Extension of Schedules" provision-which the Respondent relies upon. App. R. Brf., p. 5. See, GPO Contract Terms, Contract Clauses, � 12(c)(1). Third, the Appellant argues that the application of the "total cost" method to its claim was in error, and that the "specific cost" approach is the appropriate mechanism for determining the amount of its equitable adjustments.21 App. Brf., p. 2; App. R. Brf., p. 2. The Contractor contends that the "total cost" method is not favored by the Courts, and should be used only in "extreme" cases where there is no other proof.22 App. Brf., p. 4 (citing, Turnbull Inc. v. United States, 180 Ct.Cl. 1010, 389 F.2d 1007 (1967); F.H. McGraw & Co. v. United States, 130 F.Supp. 394 (Ct.Cl. 1955)); App. R. Brf., p. 2. The Appellant believes that "other proof" clearly existed in this case, since the OIG auditors first considered and calculated an equitable adjustment based on the "specific cost" method. App. Brf., p. 4; App. R. Brf., pp. 3-4. Consequently, it was error for the OIG auditors to prefer the alternative "total cost" method in this case. App. Brf., p. 5 (citing, Turner Affidavit, � 7); App. R. Brf., p. 3. Furthermore, the Appellant argues that because it cannot be determined with certainty what the total costs of the two disputed contracts would have been if the deductive changes not occurred, the OIG auditors' assumption that the total cost of performing the work was the same as the bid price based on the Contractor's standard estimates is fatal to the use of the "total cost" method.23 App. Brf., pp. 5-6 (citing, Turner Affidavit, � 23). Accordingly, the Appellant believes that the "specific cost" technique is the appropriate method to determine the equitable pricing adjustments for the contracts in dispute. App. Brf., p. 7; App. R. Brf., p. 4. Finally, the Appellant believes, for all of these reasons, that it is entitled to an equitable adjustment in this appeal. The Contractor says that the range of potential recovery could span from a maximum adjustment of approximately $120,000.00, if all additional direct and indirect costs which are associated with the changes are included, to a minimum adjustment of at least $68,496.00, considering only the direct costs allowed by the OIG auditors. App. Brf., pp. 3-4 (citing, Turner Affidavit, �� 10, 12-14). However, the specific relief sought by the Appellant is: (1) a refund of the $86,724.00 taken from Jacket No. 265-209 as a Government credit; and (2) an equitable pricing adjustment of at least $68,946.00, plus a refund of the $15,200.00 in credits given to the Government by the Contractor because of reduced paper costs, or a total recovery of no less than $84,146.00. App. Brf., p. 7. The Respondent, on the other hand, believes that the equitable adjustment process is not solely for the benefit of the Contractor, but the Government is also entitled to a fair result. Res. Brf., p. 4. Furthermore, the Respondent contends that the Appellant has not met its burden of proving that the page reductions resulted in additional compensable costs. Id. On the first issue, the Respondent claims that the Appellant, contrary to well-established principles of law, seeks to convert a fixed-price contract which it bid at a loss into a total cost recovery contract simply because the Government reduced slightly the amount of work. Res. Brf., p. 4. The Respondent states that under the law, a contractor in a loss position on an entire contract cannot shift the burden of its losses to the Government just because a change order has been issued.24 Res. Brf., pp. 5-6 (citing, Pacific Architects & Engineers, Inc. v. United States, 203 Ct.Cl. 499, 491 F.2d 734 (Ct.Cl. 1974); S. N. Nielson Company v. United States, supra, 141 Ct.Cl. 793; Massman Construction Company, ENGBCA No. 3660, 81-1 BCA � 15,049; Itek Corporation, ASBCA No. 13528, 71-1 BCA � 8,906); Res. R. Brf., p. 4. As the Respondent sees this case, the change reducing the number of printed pages,25 "undoubtedly" lowered the Appellant's level of production effort, and meant that less raw materials would be needed to perform the contracts.26 Res. Brf., p. 5. Therefore, in order to keep the parties in the same relative financial position which existed before the changes, the Government was entitled to take a credit which would restore the Appellant's anticipated losses.27 Res. Brf., pp. 5-6. In the Respondent's view, anything less would result in a "windfall" for the Appellant based on the fortuitous occurrence that the Government decided to make deductive changes in both contracts.28 Res. R. Brf., pp. 4, 6. Second, the Respondent admits that the Government was responsible for the delay in sending the camera copy to the Contractor, but argues that the Appellant's reimbursement demand is really a breach of contract claim which cannot be considered under the "Changes" clause. R. Brf., p. 7. Furthermore, the Respondent reminds the Board that it is without jurisdiction to hear claims for breach of contract because GPO is a Legislative branch agency, and hence is not covered by the Contract Disputes Act, Pub. L. 95-563 (November 1, 1978), 92 Stat. 2383, 41 U.S.C. �� 601, 606 (CDA).29 R. Brf., pp. 7-8 (citing, United States v. Utah Construction and Mining Co., 384 U.S. 394 (1966); Harbor Printing & Copy Service, Inc., GPOCAB No. 77-5 (1977); Cloverleaf Enterprises, Inc., GPOCAB No. 79-12 (1980); and Information Systems, Inc., GPOCAB No. 78-11 (1979)).30 Thus, the Respondent contends that the Appellant's sole remedy is to be found within the contract itself, namely, in the clause which provides for an automatic extension of the delivery schedule in the event of a delay caused by "any action" of the Government. R. Brf., p. 8 (citing, United States v. Rice, 317 U.S. 61 (1942)). See, GPO Contract Terms, Contract Clauses, � 12(c)(1). Since such an extension was granted to the Appellant in this case, it has received the full relief allowed by the contract. R. Brf., p. 8. Third, the Respondent believes that its use of the "total cost" approach here was fundamentally sound.31 Res. Brf., p. 6. It argues that employment of the "total cost" method was proper because of the difficulty in ascertaining the exact effect of the changes on the Contractor's costs with any accuracy. Res. Brf., p. 7. To the Respondent, the Appellant's "specific cost" approach is inadequate in this case because the Government-ordered changes completely altered the Appellant's production methods, namely, its press and forms configuration, thus " . . . making it difficult, if not impossible to determine the differences to cost elements attributable to the changes in production."32 Res. R. Brf., p. 3 (citing, Declaration of Edwin L. Hawse, � 5). See, R4 File, Tabs U, V, AA and HH. According to GPO, this change in production methods makes direct comparisons of pre-change and post-change costs using the "specific cost" method problematic and futile, and militates in favor of the "total cost" technique.33 Res. Brf., p. 7; Res. R. Brf., p. 3. For all of these reasons, therefore, the Respondent believes that the Appellant's claim is without merit, and it urges the Board to deny the appeal and affirm the decision of the Contracting Officer. Res. Brf., p. 9; Res. R. Brf., p. 6. DECISION34 This appeal is unique in the annals of the Board. The case not only involves the consideration of complex principles of cost accounting and the law of Government contracts, but the application of those rules is made even more difficult because the parties, for all practical purposes, have switched places with regard to the cost accounting methods they rely upon to support their respective positions.35 As a consequence, the Board candidly admits that it has struggled long and hard to reach a decision in this case because its exhaustive research has failed to disclose any precedents directly on point.36 However, the Board has a responsibility to put an end to this controversy. Lawrence D. Krause, AGBCA No. 76-118-4, 82-2 BCA � 16,129, at 80,073; Johnson, Drake & Piper, Inc., ASBCA No. 9824, 65-2 BCA � 4868, at 23,073. See also, Cibinic and Nash, p. 520. In that undertaking, the Board is ever mindful of those basic equitable adjustment principles which are the philosophical compass for navigating a way through the shoals of this complex and difficult dispute. 1. Under settled principles, two contracts originally bid at a loss, cannot be converted into a contract for profit, on the one hand, and a substantially reduced loss contract, on the other, by means of an equitable adjustment arising from deductive changes ordered by the Government. Rather, the relative financial positions of the parties must be maintained. The first issue for the Board is a question of law, not fact. Indeed, the question goes to the heart of the equitable adjustment process itself. Simply stated, the issue is whether the standard "Changes" clause supersedes the so-called "loss bid" rule in situations where, as here, the Government orders changes which increase the contractor's costs for the work, so that the contractor, regardless of its negative bid, is entitled to an upward adjustment in the contract price? From its own research, the Board concludes that the "loss bid" rule cannot be ignored in the equitable adjustment process, and thus it agrees with the Respondent's position on this issue. An equitable adjustment is basically a corrective measure designed to keep a contractor whole when the Government modifies a contract. J.F. Shea Company, Inc. v. United States, 10 Cl.Ct. 620, 627 (1986) (citing, Bruce Construction Corporation v. United States, 163 Ct.Cl. 97, 100, 324 F.2d 516, 518 (1963)); Dick & Kirkman, Inc., VABCA Nos. 1545, 1581, 84-3 BCA � 17,662, at 88,082; CRF, A Joint Venture of CEMCO, Inc. and R.R. Communications, Inc., ASBCA No. 17340, 76-1 BCA � 11,857, at 56,805 (hereinafter CRF, A Joint Venture). Since the purpose of an equitable adjustment is to place a contractor in the position it would have been in had the change not occurred, then, as a general rule, the adjustment also should not alter the contractor's profit or loss position from what it was before the change occurred.37 J.F. Shea Company, Inc. v. United States, supra, 10 Cl.Ct. at 627; Pacific Architects & Engineers, Inc. v. United States, supra, 203 Ct.Cl. at 508, 491 F.2d at 739; Nager Electric Company, Inc. and Keystone Engineering Corporation v. United States, 194 Ct.Cl. 835, 851-53, 442 F.2d 936, 945-46 (1971) (hereinafter Nager Electric Company); Keco Industries, Inc. v. United States, 176 Ct.Cl. 983, 999-1002, 364 F.2d 838, 849-850 (1966), cert. denied, 386 U.S. 958 (1967); CRF, A Joint Venture, supra, 76-1 BCA � 11,857, at 56,804; Hensel Phelphs Construction Company, ASBCA No. 15142, 71-1 BCA � 8,796. See also, Cibinic and Nash, pp. 544-45. The basic principle was succinctly stated by the Claims Court in Nager Electric Company-a deductive change case-when it said: The equitable adjustment, in other words, should not increase the [contractor's] loss nor decrease it at the expense of the Government. 194 Ct.Cl. at 853, 442 F.2d at 946. In Pacific Architects & Engineers, Inc., the Claims Court explained the rationale for this doctrine: [An] equitable adjustment may not properly be used as an occasion for reducing or increasing the contractor's profit or loss, or for converting a loss to a profit or vice versa, for reasons unrelated to a change. A contractor who has underestimated his bid or encountered unanticipated expense or ineffi- iciencies may not properly use a change order as an excuse to reform the contract or to shift his own risks or losses to the Govern- ment.38 [Citations omitted.] [Emphasis added.] 203 Ct.Cl. at 508, 491 F.2d at 739. See also, Aoki Corporation, supra, 91-2 BCA � 23,848, at 119,522; Dick & Kirkman, Inc., supra, 84-3 BCA � 17,662, at 88,082. The Government, of course, bears the burden of proving that the contract was in a loss position. Aoki Corporation, supra, 91-2 BCA � 23,848, at 119,522 (citing, Lisbon Contractors, Inc. v. United States, 828 F.2d 759, 769 (Fed. Cir. 1987); Arrow, Inc., ASBCA No. 39621, 90-3 BCA � 23,217). The Joint Stipulation is silent on whether the Contractor submitted loss bids on the two contracts in question. However, that fact is not seriously questioned by the Appellant. Besides, the Board believes there is enough compelling evidence in the record to reach that conclusion.39 Thus, the Board finds that the Appellant did bid both contracts involved in this appeal at a loss-i.e., at a negative gross margin-and that it did not intend to recover its real estimated costs. See, R4 File, Tabs LL, MM and PP. Furthermore, the Board finds that the Appellant's bids were motivated by business reasons other than a desire to make a profit, namely, the twin aims of being competitive and having work for its employees to avoid potential layoffs during a slack period of its business cycle. See, R4 File, Tab MM. Consequently, in deciding that instead of an equitable adjustment for the Appellant the Government was due a credit, the Contracting Officer was simply applying the "black letter" law which holds that the adjustment process should leave the parties in the same profit or loss position that existed before the changes were made in the contract. See, R4 File, Tabs RR and UU, � 3. See, e.g., J.F. Shea Company, Inc. v. United States, supra, 10 Cl.Ct. at 627 (1986); Pacific Architects & Engineers, Inc. v. United States, supra, 203 Ct.Cl. at 508, 491 F.2d at 739; Nager Electric Company, Inc., supra, 194 Ct.Cl. at 851-53, 442 F.2d at 945-46; S.N. Nielsen Company v. United States, supra, 141 Ct.Cl. at 796-797; CRF, A Joint Venture, supra, 76-1 BCA � 11,857, at 56,804. See also, Cibinic and Nash, pp. 544-45. In the context of this appeal, the Board is unable to say that the Contracting Officer's reliance on that basic rule is clearly erroneous. 2. The Appellant's claim for delay or downtime costs resulting from the Government's late delivery of camera copy for Jacket No. 245-004, is a proper matter for consideration under the "Changes" clause. The second issue before the Board finds the parties at odds over whether GPO's standard "Changes" clause allows the Appellant to recover its costs for the delay caused by the Government's late delivery of camera copy for Jacket No. 245-004. GPO Contract Terms, Contract Clauses, � 4. This issue, like the preceding matter concerning the "loss bid" rule, is also a question of law, since it requires that the Board to interpret both the contract language and GPO's procurement regulations. Cf., RD Printing Associates, Inc., GPO BCA 02-92 (December 16, 1992), Sl. op. at 13; General Business Forms, Inc., GPO BCA 2-84 (December 3, 1985), Sl. op. at 16 (citing, John C. Grimberg Company v. United States, 7 Ct.Cl. 452 (1985)). In that regard, the Appellant believes that it is entitled to an equitable adjustment because, among other reasons, both contracts contain language which instruct the Government to negotiate supplemental agreements with the Contractor ". . . for the contract changes". See, R4 File, Tab A, p. 4 (Schedule), Tab G, p. 4 (Schedule). The Respondent, on the other hand, argues that the automatic extension of the delivery schedule, which the Contractor received by virtue of the "Extension of Schedules" clause in the contract, is the exclusive remedy for the delay.40 GPO Contract Terms, Contract Clauses, � 12(c)(1). Under the circumstances of this case, the Board believes that the position advocated by the Appellant is sounder as a matter of law. The Board's examination of cases involving contractor claims for the recovery of delay and impact costs, teaches it that a vital consideration is the timing of the delay with respect to the Government-ordered change. In the simplest situation, extra costs stemming from a "naked" delay, that is, a disruption of work resulting from some Government action which does not physically change the work under the contract, are usually not recoverable under the standard "Changes" clause.41 See, Model Engineering & Manufacturing Corporation, ASBCA No. 7490, 1962 BCA � 3,363; Weldfab, Inc., IBCA No. 268, 61-2 BCA � 3,121. Also cf., Editors Press Incorporated, GPO BCA 03-90 (September 4, 1991), Sl. op. at 18-19. Instead, recovery for such delays-i.e., those which precede the issuance of a change order-must be pursued either as a breach of contract, or under the "Suspension of Work" or "Government Delay of Work" clauses, such as GPO's "Extension of Schedules" clause. Cf., Luria Brothers & Company. v. United States, 177 Ct.Cl. 676, 369 F.2d 701 (1966). See generally, Cibinic and Nash, p. 522-24. On the other hand, the cases hold that if a delay occurs from some Government action after a change order is issued, the contractor may recover delay and impact costs for both changed and unchanged work. Thus, the ASBCA has ruled that: Where costs in a work item are increased as a direct result of a change in that item, the increased costs are compensable, including costs of delays in performance in the change order. [Emphasis added.] Power Equipment Corporation, ASBCA No. 5904, 1964 BCA � 4,025, at 19,815, mot. for reconsid. denied, 1964 BCA � 4,228. See also, Coastal Drydock and Repair Corporation, ASBCA No. 36754, 91-1 BCA � 23,324, at 117, 002 (increased cost of disrupted unchanged work flowing directly from the change is compensable under the "Changes" clause); Merritt-Chapman and Scott v. United States, 192 Ct.Cl. 851, 429 F.2d 431 (1970); Paul Hardeman, Inc. v. United States, 186 Ct.Cl. 743, 752, 406 F.2d 1357 (1969) (concurring opinion of Judge Davis).42 See generally, Cibinic and Nash, pp. 525-26. In other words, recovery is allowed if there is a clear nexus between the change ordered by the Government and the delay experienced by the contractor. The reason why recovery is allowed for the contractor's delay and disruption costs which are the direct and necessary result of the Government's change order, can be found in the language of the "Changes" clause itself. See, Cibinic and Nash, p. 524. In that regard, the standard "Changes" clause for fixed- priced contracts provides, in pertinent part: (b) If any change causes an increase or decrease in the cost of, or the time required for, performance of any part of the work, whether or not changed by the order, the Contracting Officer shall make an equitable adjustment in the contract price, the delivery schedule, or both, and shall modify the contract. See, FAR � 52.243-1 (Changes-Fixed-Price). The drafters of the clause, which first appeared in the 1967 revision to the FAR, stated that under this language: [A]n equitable adjustment clearly encompasses the effect of a change order upon any part of the work, including delay expense, provided, of course, that such effect was the necessary, reasonable, and foreseeable result of the change. [Emphasis added.] See, 32 Fed. Reg. 16269 (1967). Even a cursory examination of GPO's "Changes" clause, which was incorporated by reference in both contracts here, discloses that the language is identical to the wording of the FAR "Changes" clause. GPO Contract Terms, Contract Clauses, � 4(b). Under settled rules of construction, the Board must presume that when the drafters of GPO's "Changes" clause adopted the FAR language verbatim, they also accepted the uniform interpretation given to those words by the 1967 revision committee, Executive branch contract appeals boards, and the courts. Cf., United States v. Aguon, 851 F.2d 1158 (9th Cir. 1988); Van Cleef v. Aeroflex Corporation, 657 F.2d 1094 (9th Cir. 1981); L.B. Foster v. Railroad Service, Inc., 734 F.Supp. 818 (N.D. Ill. 1990). Furthermore, the cost accounting principles governing GPO contracts reenforce the Board's belief that GPO's "Changes" clause is intended to apply to a contractor's delay and disruption costs flowing from Government changes to the contract. In that regard, the applicable accounting rules provide that payment for equipment downtime is allowable if, inter alia, the machinery was necessary when acquired and is now idle because of changes in requirements, production economies, reorganization, termination, or other causes which could not have been foreseen.43 See, GPO Procurement Directive 306.2, Subject: Contract Cost Principles and Procedures, dated April 1, 1988, p. 22, � 25(b)(2) (Idle facilities and idle capacity costs) (hereinafter GPO Contract Cost Principles). Therefore, the Board concludes that GPO's standard "Changes" clause, like the parallel provision in the FAR, allows a contractor to recover compensation for delay expenses stemming from a change order upon any part of the work as part of an equitable adjustment.44 All the relevant facts necessary to decide this issue on the merits have been stipulated by the parties. Thus, the Appellant was awarded the contract for Jacket No. 245-004 on June 16, 1989. Joint Stipulation, � 2, pp. 1-2. Thereafter, on September 25, 1989, GPO issued a PSCO for Jacket No. 245-004 which reduced the number of pages per booklet from 88 pages to 80. Joint Stipulation, � 7, p. 3. The delay occurred when the camera copy for Jacket No. 245-004 failed to arrive on the morning of October 10, 1989, as expected, and was not delivered until October 12, 1989 (R4 File, Tab W). The parties agree that the Government was solely to blame for the delay, and that the late arrival of the camera copy caused the Appellant to incur increased costs.45 Joint Stipulation, � 13, p. 4. It is clear from these facts that the Appellant's delay costs were incurred after the Respondent issued the change order for Jacket No. 245-004 and were a direct result of that change. Therefore, the Board believes that the Contractor's claim for its increased costs stemming from the Government's late delivery of camera copy for Jacket No. 245-004 is a proper matter for consideration under the "Changes" clause. Power Equipment Corporation, supra, 1964 BCA � 4,025. Accordingly, it will allow the claim to the extent indicated in Appendix I of this opinion.46 3. Neither the Appellant's "actual cost" method of cost accounting, nor the Respondent's "total cost" formula, is appropriate under the circumstances of this case. Instead, the Board believes that the best method for determining a fair and reasonable equitable adjustment is the "jury verdict" technique. The penultimate question in this appeal concerns the parties' dispute over the relative merits of two totally different cost accounting methods as the vehicle for determining the Appellant's equitable adjustment or the Respondent's credit, as the case may be. The Appellant urges the Board to adopt the "actual cost" method, while the Respondent contends that only the "total cost" approach is appropriate.47 In the Board's view, however, neither method is entirely adequate in the circumstances of this case. The Appellant correctly argues that the preferred method for establishing the amount of an equitable adjustment is through the introduction of actual cost data.48 See, e.g., Dawco Construction, Inc. v. United States, supra, 930 F.2d at 882; Cen-Vi-Ro of Texas v. United States, 210 Ct.Cl. 684 (1976); Buck Brown Contracting Co., IBCA No. 1119-7-76, 78-2 BCA � 13,360; Engineered Systems, Inc., DOTCAB No. 75-5, 76-2 BCA � 12,211; Bregman Construction Corporation, ASBCA No. 15020, 72-1 BCA � 9,411. As a rule, actual costs are proved through the introduction of the contractor's accounting records, which will be accepted if they had been audited by the Government and are unrebutted. Celesco Industries, ASBCA No. 22251, 79-1 BCA � 13,604. If the accounting records are not available due to no fault of the contractor, the costs may be established on the basis of estimates,49 see, e.g., Bailey Specialized Buildings, Inc., ASBCA No. 10576, 71-1 BCA � 8,699, if they are supported by detailed, substantiating data.50 See, e.g., R. G. Robbins & Company, ASBCA No. 27,516, 83-1 BCA � 16,420; Leopold Construction Company, ASBCA No. 23705, 81-2 BCA � 15,277; Paccon, Inc., supra, 65-2 BCA � 4,996. The "total cost" method, on the other hand, is a formula for determining a price adjustment by deducting the bid estimate from the actual costs incurred and holding the Government responsible for the difference. See, Wunderlich Contracting Company v. United States, 173 Ct.Cl. 180, 351 F.2d 956 (1965); Akon, Inc., supra, 90-3 BCA � 23,250; Santa Fe Engineers, Inc., ASBCA No. 36682, 90-3 BCA � 23,020, at 115,567; R.C. Hedreen Company, GSBCA No. 4841, 78-2 BCA � 13,475. As indicated by the Appellant, the "total cost" method is not favored by the boards and courts. See, e.g., Joseph Sternberger v. United States, 185 Ct.Cl. 528, 401 F.2d 1012 (1968); WRB Corporation v. United States, supra, 183 Ct.Cl. 409 (1968); S.W. Electronics & Manufacturing Corporation, ASBCA No. 20698, 77-2 BCA � 12,631, aff'd, 228 Ct.Cl. 333, 655 F.2d 1078 (1981). However, the "total cost" approach is not prohibited per se, but it generally is not used if another, more reliable, method is available to establish the contractor's actual costs.51 See, e.g., Servidone Construction Corporation v. United States, supra, 931 F.2d at 862 (citing, Great Lakes Dredge & Dock Co. v. United States, 119 Ct.Cl. 504, 559, 96 F.Supp. 923, 926 (1951), cert. denied, 342 U.S. 953 (1952)); Dawco Construction, Inc. v. United States, supra, 930 F.2d at 881, fn. 3 (citing, G.M. Shupe, Inc. v. United States, 5 Cl.Ct. 662, 676 (1984)); Boyajian v. United States, 191 Ct.Cl. 233, 423 F.2d 1231 (1970); Wunderlich Contracting Company v. United States, supra, 351 F.2d 956, 965; Robert McMullen & Son, Inc., ASBCA No. 19129, 76-2 BCA � 12,072. See generally, Cibinic and Nash, pp. 514-19. Because the "total cost" method is generally suspect, the presence of four safeguards is required in order for its use to be endorsed by the boards and courts, namely: . . . (1) the nature of the particular losses make it impossible or highly impracticable to determine them with a reasonable degree of accuracy; (2) the [contractor's] bid or estimate was realistic; (3) its actual costs were reasonable; and (4) it was not responsible for the added expenses. [Citations omitted.] [Emphasis added.] WRB Corporation v. United States, supra, 183 Ct.Cl. at 426. See also, Servidone Construction Corporation v. United States, supra, 931 F.2d at 861; Santa Fe Engineers, Inc., supra, 90-3 BCA � 23,020, at 115,566-67; Wilbur Smith & Associates, Inc., ASBCA No. 35301, 89-3 BCA � 22,025, at 110,782. Whether all four safeguards must be proved, or whether a "total cost" adjustment may still be made even if one criterion is not met, is not settled in the cases. See, Cibinic and Nash, p. 515. However, the ASBCA is clearly of the opinion that the evidence must satisfy all four elements of the test, and that the failure to prove just one of the criteria will prevent a "total cost" recovery. See, e.g., Michael, Inc., ASBCA No. 35653, 92-1 BCA � 24,412, at 121,863; Santa Fe Engineers, Inc., supra, 90-3 BCA � 23,020, at 115,567; Tagoroli Corporation, ASBCA Nos. 32995, 32996, 89-2 BCA � 21,864, at 109,974. In light of the fact that the four WRB Corporation safeguards are expressed in the conjunctive-by use of the word "and"-the Board believes that the view espoused by the ASBCA is sound, and is fully in accord with the intention of the Claims Court. Cf., Bruce v. First Federal Savings and Loan Association of Conroe, Inc., 837 F.2d 712, 715 (5th Cir. 1988); Comtech, Inc. v. National Technical Schools, 711 F.Supp. 522, 524 (D.Ariz. 1989) (citing, New Hampshire Automobile Dealers Association, Inc. v. General Motors Corporation, 620 F.Supp. 1150, 1157-58 (D.N.H. 1985)). See generally, 1A Sands, Sutherland Stat. Const. � 21.14 (4th ed. 1985). Therefore, the Board adopts that interpretation for cases in this forum. The plain meaning of the applicable law requires that the Board reject the Respondent's use of the "total cost" method. Specifically, the Board finds that the second element in the WRB Corporation test-that the Contractor's bid or estimate was realistic-simply cannot be fulfilled under the facts of this case.52 WRB Corporation v. United States, supra, 183 Ct.Cl. at 426. [Emphasis added.] See, R.C. Hedreen Company, supra, 78-2 BCA � 13,475, at 65,926. See also, Cibinic and Nash, p. 517. The common dictionary definition of the word "realistic" is "tending to face facts," or, as a derivative of the word "real," it describes something which is "factual," "actual," or "true." WEBSTER'S NEW WORLD DICTIONARY, p. 1118 (4th ed. 1988). Therefore, as the Board understands the second test of WRB Corporation, the evidence must show that the Contractor's bid bore some reasonable approximation to the costs it expected to incur on the contract. The evidence in this case shows just the opposite. In that regard, the Board has already found that: (1) the Appellant lowered its cost estimates and submitted loss bids on both contracts; (2) the loss bids were an intentional act by the Contractor motivated by sound business reasons; and (3) the Appellant never intended to recover its actual estimated costs at the time it submitted its bids. The cases establish that where, as here, a contractor submits a bid which is too low for the work, the trier of fact cannot find that the bid estimates were reasonable for the purposes of the "total cost" method. Tagoroli Corporation, supra, 89-2 BCA � 21,864, at 109,971-72, 109,974. Consequently, because the Appellant submitted bids which were artificially lower than the cost estimates it calculated, the bids cannot be said to be a true reflection of the Appellant's anticipated costs on the two contracts. Accordingly, on the basis of this record, the Board must conclude that the Contractor's bid estimates were unrealistic per se, thus negating the use of the "total cost" technique because WRB Corporation's second safeguard is not satisfied. However, rejection of the Respondent's "total cost" method does not mean, ipso facto, that the Board adopts the Appellant's "actual cost" technique. As the Board sees it, the same circumstance which nullifies the "total cost" approach-the fact that the Appellant purposely bid both contracts at a loss-also undermines the use of the "actual cost" method in this case. Among other things, in order to prevail on its "actual cost" theory, the Appellant must prove that its costs were reasonable.53 See, Celesco Industries, supra, 79-1 BCA � 13,604; Triple "A" Machine Shop, Inc., ASBCA No. 21561, 78-1 BCA � 13,065 (1978); Cal Constructors, ASBCA No. 21179, 78-1 BCA � 12,992 (1977). This is so because the touchstone for determining the amount of an equitable adjustment is the difference between what it reasonably would have cost to perform the work as originally required and what it reasonably cost to perform the work as changed. General Builders Supply Co. v. United States, 187 Ct.Cl. 477 (1969); Zurfluh Enterprises, Inc., VABCA No. 1941, 85-1 BCA � 17,789; Dick & Kirkman, Inc., supra, 84-3 BCA � 17,662; Lawrence D. Krause, supra, 82-2 BCA � 16,129; Celesco Industries, supra, 79-1 BCA � 13,604; Jack Picoult, VACAB No. 1221, 78-1 BCA � 13,024. Whether a contractor's costs are reasonable is a question of fact depending on the circumstances.54 Nager Electric Company, Inc., supra, 194 Ct.Cl. at 851-53, 442 F.2d at 945-46. In this case, the Appellant submitted bids which were artificially lower than the real cost of the work, as forecast by its basically sound formal cost estimating system, and never intended to recover its actual costs on these contracts.55 Because the Contractor's bids were not meant to be a true reflection of its projected job costs, the Board has no benchmark by which to determine the reasonableness of the costs for performing the work as originally required and as subsequently changed by the Government. Zurfluh Enterprises, Inc., VABCA No. 1941, 85-1 BCA � 17,789; Dick & Kirkman, Inc., supra, 84-3 BCA � 17,662; Lawrence D. Krause, supra, 82-2 BCA � 16,129; Jack Picoult, supra, 78-1 BCA � 13,024. Therefore, the Board is unable to say that the Appellant has sustained its burden of showing that its costs were reasonable under the circumstances in this case.56 Cf., Michael, Inc., supra, 92-1 BCA � 24,412, at 121,863. Moreover, the Board agrees with the Respondent, albeit for different reasons, that the bifurcated cost accounting approach taken by the Appellant -intentionally lowering its job estimates for the purposes of bidding, but seeking an equitable adjustment on the basis of actual job costs-makes it difficult to accurately gauge the effect of the Government's changes on the Contractor's costs. Without such proof, establishing a causal connection between the Appellant's increased costs and the changes ordered by the Government becomes a herculean task.57 Since the Board is unable to determine the reasonableness of the Appellant's costs on the basis of this record, it must also conclude that the Contractor has failed to support its use of the "actual cost" method. Accordingly, the Board also rejects the Appellant's contention that its unfiltered costs after the Government- ordered changes should be the basis of an equitable adjustment. Cf., Dick & Kirkman, Inc., supra, 84-3 BCA � 17,662. Having found that both the "actual cost" method and the "total cost" approach are inappropriate, the Board now finds itself on the horns of a dilemma. On the one hand, the Board cannot ignore the undisputed fact in this case that the Government's changes caused the Appellant to alter its methods of production; i.e., its press and forms configuration. On the other hand, the Board knows that while there is no standard by which to measure the reasonableness of the Contractor's costs, it is nonetheless inescapable that the contract changes ordered by the Respondent had some cost impact. Furthermore, the Board's quandary is complicated by the rule which prohibits converting a loss contract into one for profit or vice versa-about as close to an immutable principle as one can find in Government contract law-which is also involved in this case. The law, however, provides a way out this conundrum. Under the so-called "jury verdict" method, where a board or court finds an entitlement to an equitable adjustment but the evidence is incomplete, or the amount cannot be determined with any degree of mathematical precision, it may exercise its discretion to resolve conflicting evidence concerning the claim and arrive at a fair amount of compensation.58 See, e.g., Assurance Company v. United States, 813 F.2d 1202, 1205 (Fed. Cir. 1987); S.W. Electronics & Manufacturing Corporation v. United States, 228 Ct.Cl. 333, 655 F.2d 1078 (1981), aff'g ASBCA No. 20698, 77-2 BCA � 12,631; Electronic & Missile Facilities, Inc. v. United States, 189 Ct.Cl. 237, 416 F.2d 1345, 1358 (1969); Dawco Construction, Inc., ASBCA No. 42120, 92-2 BCA � 24,915; Gricoski Detective Agency, GSBCA Nos. 8901(7823), 8922(7824), 8923(7825), 8924(7826), 8925(7827), 8926(7828), 90-3 BCA � 23,131; E.W. Eldridge, Inc., ENGBCA No. 5269, 90-3 BCA � 23,080; Harvey C. Jones, Inc., IBCA Nos. 2070, 2150, 2151, 2152, 2153, 2467, 90-2 BCA � 22,762. See generally, Cibinic and Nash, pp. 519-22. The key to the use of the "jury verdict" method is the presence of sufficient evidence to permit the determination of a fair and reasonable approximation of damages.59 J.E.T.S. Incorporated, ASBCA No. 28083, 88-2 BCA � 20,540, at 103,859 (citing, Schuster Engineering, Inc., ASBCA Nos. 28760, 29306, 30683, 87-3 BCA � 20,105). While the "jury verdict" technique is generally not favored, like the "total cost" method it also is not prohibited per se.60 Dawco Construction, Inc. v. United States, supra, 930 F.2d at 880; Specialty Assembling & Packing Company v. United States, 174 Ct.Cl. 153, 355 F.2d 554, 572 (1966). Thus, a trier of fact may allow recovery if it determines that: (1) clear proof of injury exists; (2) there is no more reliable method for computing damages; and (3) there is sufficient evidence to make a fair and reasonable approximation of damages.61 See, Dawco Construction, Inc. v. United States, supra, 930 F.2d at 880 (citing, WRB Corporation v. United States, supra, 183 Ct.Cl. at 425); Gricoski Detective Agency, supra, 90-3 BCA � 23,131; Harvey C. Jones, Inc., supra, 90-2 BCA � 22,762; J.E.T.S. Incorporated, supra, 88-2 BCA � 20,540; Lawrence D. Krause, supra, 82-2 BCA � 16,129. In the Board's judgment, all of the elements necessary for use of the "jury verdict" method are present in this case, and it is appropriate to resolve this dispute by that approach. 4. Applying the "jury verdict" method, the Board concludes that the Respondent took too large a credit for the page deletions on both contracts, and that the Appellant is entitled to a total refund of $72,830.00 as a reasonable equitable adjustment in this case. The central question in this dispute concerns the quantum of relief; i.e., how much of an equitable adjustment is due the Appellant or, in the alternative, how much of a credit is the Government entitled to? Since this case is before the Board because the Appellant objects to the Government taking a credit for the deleted work instead of allowing the Contractor's claim for an equitable recovery, the Respondent was obligated to prove how much downward adjustment should be made.62 Nager Electric Company, Inc., supra, 194 Ct.Cl. at 853, 442 F.2d at 946; Jackson Engineering Company, Inc., ASBCA No. 27104, 85-3 BCA � 18,418; R & E Electronics, Inc., VABCA Nos. 2227, 2299, 2300, 85-3 BCA � 18,316; Globe Construction Co., ASBCA No. 21069, 78-2 BCA � 13,337; G.L. Cory, Inc., GSBCA No. 4383, 77-2 BCA � 12,824. As a rule, the Government's credit for deleted work in a fixed-price contract is measured by the net cost savings to the contractor.63 S.N. Nielsen Company v. United States, supra, 141 Ct.Cl. at 793; Jackson Engineering Company, Inc., supra, 85-3 BCA � 18,418; Unicom Systems, Inc., ASBCA No. 29468; 84-3 BCA � 17, 675; N.G. Adair, Inc., ASBCA No. 25961, 83-2 BCA � 16,887; Fordel Films West, ASBCA No. 23071, 79-2 BCA � 13,913; Celesco Industries, supra, 79-1 BCA � 13,604. See also, Cibinic and Nash, pp. 483, 496. Consequently, to sustain its burden of proof in this case, the Respondent must show: (1) the extent to which the contract requirements were reduced; (2) the savings which resulted therefrom; (3) that the Contractor's effort was, in fact, reduced by the contract change; and (4) that the amount of downward price adjustment was reasonable.64 R & E Electronics, Inc., supra, 85-3 BCA � 18,316; Zurfluh Enterprises, Inc., supra, 85-1 BCA � 17,789; Celesco Industries, supra, 79-1 BCA � 13,604; Southeastern Services, Inc., ASBCA No. 21278, 78-2 BCA � 13,239; Industrial Textile Mills, Inc., ASBCA No. 18163, 73-2 BCA � 10,232. From its analysis of the record, the Board concludes that the Respondent has not sustained its burden of proof. Specifically, the Government has failed to show that the Appellant's effort was, in fact, reduced by the contract change. Cf., ACS Construction Company, Inc. of Mississippi, supra, 87-1 BCA � 19,660. As indicated previously, the key to the Respondent's argument is its assumption that the changes which reduced the number of printed pages under each contract "undoubtedly" lowered the level of production effort, meant that less raw materials would be needed to perform the contracts, and were the cause of the "dramatic" reduction in the Appellant's potential losses under the contracts. Res. Brf., p. 5. However, GPO has offered no evidence to support this premise beyond these mere allegations and self-serving and conclusory statements, which are insufficient to carry its burden of proof on the "level of effort" issue. Cf., Fry Communications, Inc./InfoConversion Joint Venture, GPO BCA 9-85, Decision on Remand (August 5, 1991) Sl. op. 32-33, fn. 31 (citing, Fry Communications, Inc./InfoConversion Joint Venture v. United States, 22 Cl.Ct. 497, 510 (1991)); Tri- State Services of Texas, Inc., ASBCA No. 38010, 89-3 BCA � 22,064; Gemini Services, Inc., ASBCA No. 30247, 86-1 BCA � 18,736). To the contrary, the Respondent has stipulated to facts which tend to show that the Appellant's level of effort was increased because of the changes. Thus, the parties agree that in order to satisfactorily perform the contracts as modified, the Contractor revised its production plans under each contract, slit the rolls of paper on hand which had already been procured for the work instead of ordering new stock, and reconfigured its presses. Joint Stipulation, � 12, p. 4. The parties also concur that when these steps were reviewed by the Respondent's PPD, they were found to be reasonable and necessary under the circumstances. See, Joint Stipulation, � 16, p. 5. As a rule, a party is bound by its stipulations, Morelock v. NCR Corporation, 586 F.2d 1096, 1107 (6th Cir. 1978), cert. denied, 441 U.S. 906, 99 S.Ct. 1995 (1979), and such evidentiary agreements freely entered into are controlling and conclusive on all issues of fact.65 Bromley Contracting Company, Inc. v. United States, supra, 14 Cl.Ct. at 74 (citing, Gersham & Company v. United States, 200 Ct.Cl. 97, 112, 470 F.2d 542, 551 (1972)). FED. R. CIV. P. 16. While a court or board may reject a factual stipulation if it is "demonstrably false" or contrary to the facts in the record, Dillon, Read & Company, Inc. v. United States, 875 F.2d 293 (Fed. Cir. 1989); Bromley Contracting Company, Inc. v. United States, supra, 14 Cl.Ct. at 74 (citing, Kaminer Construction Corporation v. United States, 203 Ct.Cl. 182, 197, 488 F.2d 980, 988 (1973)), the record here fails to disclose any evidence which would contradict the stipulation in this case.66 But for the fact that the Contractor intentionally submitted loss bids on both contracts, the matter might have ended here. However, since GPO awarded the two contracts on the basis of those loss bids, the Board cannot ignore the rule which prevents an equitable adjustment from being used as a vehicle for altering the relative financial positions of the parties following Government- ordered changes. Nager Electric Company, 194 Ct.Cl. at 853, 442 F.2d at 946; Pacific Architects & Engineers, Inc., 203 Ct.Cl. at 508, 491 F.2d at 739; Aoki Corporation, supra, 91-2 BCA � 23,848; CRF, A Joint Venture, supra, 76-1 BCA � 11,857. The Appellant seeks to avoid the consequences of that principle by arguing that the case law-specifically Keco Industries-sufficiently modifies the basic doctrine to allow payment of its claim regardless of the fact that it submitted loss bids.67 App. Brf., p. 3. Keco Industries, Inc., supra, 72-2 BCA � 9,576. The Board believes, however, that insofar as the Contractor's theory implies that notwithstanding a loss bid, all Government-ordered changes which result in increased costs must, of necessity, lead to reformation of the contract, that view is clearly contrary to the unambiguous requirements of the law prohibiting such a windfall result.68 Pacific Architects & Engineers, Inc. v. United States, supra, 203 Ct.Cl. at 508, 491 F.2d at 739; Aoki Corporation, supra, 91-2 BCA � 23,848, at 119,522; Dick & Kirkman, Inc., supra, 84-3 BCA � 17,662, at 88,082. On the other hand, although the Board thinks the Appellant is seeking to prove too much through Keco Industries, that case is not without some relevance to the facts in this dispute. The clear teaching of Keco Industries is that a contractor who bids a job at no profit may still be entitled to recover a fair profit on additional work which results from Government changes.69 See, Cibinic and Nash, p. 547. Thus, it is noteworthy that both contracts in this dispute treat increases or decreases to the bid quantities of tax booklets as Government "changes" entitling the Contractor to reimbursement at an "Added Rate," which is different from the bid rate. See, R4 File, Tab A, p. 3 (Changes in Quantity), Tab G, p. 3 (Changes in Quantity). Obviously, since no bidder at the time bids were submitted, could possibly know if changes to the quantities specified would ever occur, it appears to the Board that subsequent Government orders for additional copies of the pamphlets fall within the ambit of the Keco Industries exception to the "loss bid" rule. Indeed, it also seems that when GPO included the payments made to the Appellant for those additional copies in its calculations of the Government credit on both contracts (R4 File, Tab PP, Appendix V, p. 12, fn. 3; Appendix VI, p. 14, fn. 2), it was nibbling at the margins of the principle established in CRF, A Joint Venture, which forbids the Government from adding to a contractor's loss. CRF, A Joint Venture, supra, 76-1 BCA � 11,857, at 56,804. Thus, the record discloses that the Contractor reduced the "Added Rate" when the Government ordered the page reductions to each contract, and was paid for the additional work at the lower figure (R4 File, Tabs U and V).70 Consequently, the Government's credit magnified the Appellant's loss even further by subjecting those payments to an additional reduction, and effectively added to the loss the Contractor would have experienced if there had been no change order. Cf., CRF, A Joint Venture, supra, 76-1 BCA � 11,857, at 56,804-05. See also, Langoma Industries, Inc., supra, 57-2 BCA � 1370. As the Board has already stated, the "jury verdict" method needs sufficient evidence in the record to permit the determination of a fair and reasonable approximation of damages. See, Assurance Company v. United States, supra, 813 F.2d 1202; S.W. Electronics & Manufacturing Corporation v. United States, supra, 228 Ct.Cl. 333, 655 F.2d at 1088; Electronic & Missile Facilities, Inc. v. United States, supra, 189 Ct.Cl. 237, 416 F.2d 1345; Gricoski Detective Agency, supra, 90-3 BCA � 23,131; E.W. Eldridge, Inc., supra, 90-3 BCA � 23,080; J.E.T.S. Incorporated, supra, 88-2 BCA � 20,540; Lawrence D. Krause, supra, 82-2 BCA � 16, 129. In this case, the Board finds that the Appellant's evidence, as audited by GPO, provides enough of a basis upon which to predicate a "jury verdict" award. Cf., E.W. Eldridge, Inc., supra, 90-3 BCA � 23,080, at 115,901 (citing, Bruno Lan v. United States, 195 Ct.Cl. 370 (1971)); Celesco Industries, supra, 79-1 BCA � 13,604. That is, even though the Respondent's overall "total cost" approach has been rejected, the information contained in that portion of the OIG Audit Report is the best available in the record for the Board's use in determining a "jury verdict." Cf., S.W. Electronics & Manufacturing Corporation v. United States, supra, 228 Ct.Cl. 333, 655 F.2d at 1078; E.W. Eldridge, Inc., supra, 90-3 BCA � 23,080, at 115,901; Schuster Engineering Inc., supra, 87-3 BCA � 20,105; Celesco Industries, supra, 79-1 BCA � 13,604. Also cf., Pavement Specialists, Inc., ASBCA No. 17410, 73-2 BCA � 10,082. In essence, of the two accounting methods presented in the OIG Audit Report, the Board believes that the gross "total cost" figures, which use the Contractor's loss bid estimates as the starting point for an examination of the costs flowing from the changes, are an appropriate basis for determining the equitable adjustment by a "jury verdict" technique. Cf., E.W. Eldridge, Inc., supra, 90-3 BCA � 23,080, at 115,901 (citing, J.D. Abrams, ENGBCA No. 4332, 89-1 BCA � 21,379; Parkdale Building Maintenance, ENGBCA No. 5232, 90-1 BCA � 22,319); State Mechanical Corporation, VABCA No. 2797, 91-2 BCA � 23,830 at 119,440 (citing, Zurfluh Enterprises, Inc., supra, 85-1 BCA � 17,789). The Board's specific cost analyses regarding Jacket Nos. 245-004 and 245-006 are set forth in Appendix I and Appendix II to this opinion, respectively. Appendix III summarizes the Board's calculations relating to the appropriate Government credit and the refund due the Appellant. In that regard, it is well-settled that a board of contract appeals has the authority to recalculate the amount of a deduction taken by the Government. See, Mit-Con, Inc., ASBCA No. 43021, 92-1 BCA � 24,632; Arctic Corner, supra, 86-3 � 19,304; R & E Electronics, Inc., supra, 85-3 BCA � 18,316; Steve P. Rados, Inc., supra, 82-1 BCA � 15,624; Varo, Inc., supra, 72-2 BCA � 9,717. Essentially, the Board finds that: (1) the Government was only entitled to a total credit of $32,748.00 for both contracts; (2) the Respondent mistakenly included the Appellant's delay and downtime costs as part of its overall calculations instead of treating them separately; and (3) the Contractor is entitled to a refund of $72,830.00 as an equitable adjustment in this case.71 In the final analysis, the Board concludes that although the Respondent was entitled to some credit for the page deletions, it overestimated the impact of the deductive changes and took too much of a reduction in the price of both contracts. R & E Electronics, Inc., supra, 85-3 BCA � 18,316; Zurfluh Enterprises, Inc., supra, 85-1 BCA � 17,789; Celesco Industries, supra, 79-1 BCA � 13,604. Although this decision allows the Government less of a credit for the deleted work than it took, the Board believes that its cost analysis represents a fair and reasonable proximation of the Contractor's costs resulting from the Government page- reduction changes in both contracts. Cf., E.W. Eldridge, Inc., supra, 90-3 BCA � 23,080; Arctic Corner, supra, 86-3 BCA � 19,304. The Board has reached this conclusion for the following reasons: 1. The main purpose of an equitable adjustment is to keep a contractor whole when the Government modifies a contract by limiting the repricing of the agreement to the effect of the change alone. See, J.F. Shea Company, Inc. v. United States, supra, 10 Cl.Ct. at 627; Dick & Kirkman, Inc., supra, 84-3 BCA � 17,662, at 88,082; Lawrence D. Krause, supra, 82-2 BCA � 16,129, at 80,073. Consequently, the Board believes, consistent with this underlying philosophy, that the equitable adjustment rules should be liberally construed and applied where possible. E.W. Eldridge, Inc., supra, 90-3 BCA � 23,080, at 115,901. 2. The Board's computations give full effect to the rule which requires that an equitable adjustment not alter a contractor's profit or loss position from what it was before the change occurred, see, J.F. Shea Company, Inc. v. United States, supra, 10 Cl.Ct. at 627; Pacific Architects & Engineers, Inc. v. United States, supra, 203 Ct.Cl. at 508, 491 F.2d at 739; Nager Electric Company, Inc., supra, 194 Ct.Cl. at 853, 442 F.2d at 946, and isolates impact costs to the changes alone. See, Cibinic and Nash, p. 482. On the other hand, the Board's decision also recognizes the ameliorating effect of Keco Industries, by excluding payment for the work performed in producing additional quantities of the tax booklets from the impact of the "loss bid" rule. Keco Industries, Inc., supra, 72-2 BCA � 9,576, mot. for reconsid. denied, 72-2 BCA � 9,633. Cf., CRF, A Joint Venture, supra, 76-1 BCA � 11,857; Langoma Industries, Inc., supra, 57-2 BCA � 1370. 3. The information contained in the Respondent's audit of the Contractor's records reasonably supports the Board's calculations of the amount approximating the impact of the change on the Appellant. S.W. Electronics & Manufacturing Corporation v. United States, supra, 228 Ct.Cl. 333, 655 F.2d at 1078; E.W. Eldridge, Inc., supra, 90-3 BCA � 23,080; Schuster Engineering Inc., supra, 87-3 BCA � 20,105; Celesco Industries, supra, 79-1 BCA � 13,604. 4. The Board's approach harmonizes the conflicting positions advanced by the parties with respect to the appropriate cost accounting method to be applied in this case. Cf., Condor Reliability Services, Inc., supra, 90-3 BCA � 23,254; E.W. Eldridge, Inc., supra, 90-3 BCA � 23,080; J.E.T.S. Incorporated, supra, 88-2 BCA � 20,540; Arctic Corner, supra, 86-3 BCA � 19,304. 5. The Board's determination that the Appellant's claim for recovery of its increased costs resulting from the Government's failure to timely deliver the camera copy for Jacket No. 245-004, should be considered under the "Changes" clause, is fully consistent with the case law and GPO's own procurement and cost accounting regulations. See, Paul Hardeman, Inc. v. United States, supra, 186 Ct.Cl. at 752, 406 F.2d 1357; Power Equipment Corporation, supra, 1964 BCA � 4,025, See also, GPO Contract Terms, Contract Clauses, � 4(b) (Changes); GPO Contract Cost Principles, � 25(b)(2) (Idle facilities and idle capacity costs). Therefore, when the Board considers the quantum of relief issue in light of the evidence, cases, authorities, and applicable regulations, it will ALLOW the Appellant's claim to the fair and reasonable amount of $72,830.00. The Contracting Officer's decision is MODIFIED, accordingly. ORDER From the foregoing analysis, the Board finds and concludes that: (a) the Appellant's claim is subject to the rule that an equitable adjustment may not properly be used to reduce or increase a contractor's profit or loss, or convert a loss to a profit or vice versa; (b) the Contractor's claim for delay and downtime costs is a proper matter for consideration under the "Changes" clause; (c) the "jury verdict" technique, rather than the "actual cost" method or "total cost" formula, furnishes the best approach for determining a fair and reasonable equitable adjustment in this case; and (d) under the "jury verdict" method, the Appellant is entitled to a total refund of $72,830 as a reasonable equitable adjustment. THEREFORE, the Board MODIFIES the Contracting Officer's decision and REMANDS the case with instructions that appropriate arrangements be made to pay the Contractor in accordance with this opinion. RD Printing Associates, Inc., supra, Sl. op. at 37; General Business Forms, Inc., supra, Sl. op. at 23. It is so Ordered. November 15, 1993 STUART M. FOSS Administrative Judge _______________ 1 The Contracting Officer's appeal file, assembled pursuant to Rule 4 of the Board's Rules of Practice and Procedure, was delivered to the Board on March 26, 1991. GPO Instruction 110.12, Subject: Board of Contract Appeals Rules of Practice and Procedure (GPO Instruction 110.12), dated September 17, 1984 (Board Rules), Rule 4. It will be referred to hereafter as R4 File, with an appropriate tab letter(s) also indicated. The R4 File consists of documents identified as Tabs A through YY. 2 The Joint Stipulation was accepted by the Board on October 10, 1991. See, Banta Company, GPO BCA 03-91, Order Accepting Joint Stipulation of Undisputed Facts, dated October 10, 1991. 3 The Joint Stipulation erroneously shows the relevant dates as 1991 not 1989. See also, Joint Stipulation �� 6 and 7, pp. 2-3. This is an obvious typographical error which is corrected herein. 4 Both contracts here contain the same "CHANGES IN QUANTITY" clause, which provides: "The Government may submit increases or decreases of up to 15% of the pamphlet and envelope quantities shown in Exhibit 1 until the date specified in the schedule. These quantity adjustments may be made via successive updates of Exhibit 1 or by telephone. Billing adjustments for scheduled quantity changes will be at the contractor's quoted 'ADDED RATE'. (See Offers Section) If no changes have been received by the scheduled date for final quantity adjustments, the bid quantities will stand as the contract quantity. Any further adjustments, due to extenuating circumstances, will be negotiated with the contractor." See, R4 File, Tab A, p. 3, and Tab G, p. 3. The Appellant contends that the GPO "Printing Specification Change Order" was not issued in accordance with this "CHANGES IN QUANTITY" clause. Complaint of Banta Company (undated but received by the Board on April 29, 1991), � 6, pp. 2-3 (hereinafter Complaint). In any event, according to the Contractor, the clause only allows changes in the total number of booklets ordered, not in the number of page's per booklet. Id. 5 See, note 4 supra. Complaint, � 7, pp. 3-4. 6 On October 3, 1989, the Appellant wrote to the Contracting Officer concerning the additional costs resulting from the 8- page reduction in the tax booklet covered by Jacket No. 245-004 (R4 File, Tab U). A similar letter was sent to the Contracting Officer on October 5, 1989, with respect to the 8-page reduction in the tax booklet covered by Jacket No. 245-006 (R4 File, Tabs V). Both letters are essentially the same, and told GPO that: (a) the page adjustment occurred when all of the paper stock had been ordered and a large number of booklets already manufactured; (b) the page count adjustment forced the Contractor to change production methods due to press delivery capabilities; and (c) approximately 50% of the paper stock already manufactured would not fit the new press and forms configuration (R4 File, Tabs U and V). The Appellant's October 3, 1989, letter told the Respondent that the additional costs on Jacket No. 245-004 amounted to a total of $63,647.00, consisting of the following items: (a) slitting 382,000 pounds of stock into new (smaller) roll sizes-$26,358.00; (b) the value of the paper from slitting the stock into smaller rolls- $27,169.00; (c) round-trip freight charges from the Contractor's facility to the slitting subcontractor-$1,780.00; and (d) additional press crews needed to handle excessive roll changes due to use of smaller rolls-$8,340.00 (R4 File, Tab U). As for Jacket No. 245-006, the Appellant's October 5, 1989, letter said that additional costs incurred would amount to $18,366.00, consisting of: (a) 26,500 pounds of paper stock ordered but not usable because of the change in the number of pages-$6,857.00; and (b) 30 hours of lost press time-$11,509.00 (R4 File, Tab V). By separate letters to the Contracting Officer on January 5, 1990, the Appellant made certain minor adjustments to its cost calculations on each of the disputed Jacket numbers (R4 File, Tabs Z and AA). Thus, for Jacket No. 245-006, the Contractor figured its cost of unusable paper stock as $6,732.00, and its lost press time as 34 hours (R4 File, Tab Z). On Jacket No. 245-004, the Appellant told GPO that the cost of slitting was $21,422.00, that the charge for the paper tonnage lost in slitting was $27,114.00,and that round-trip freight charges were now $1,204.00; there was no change in its calculation of crew charges (R4 File, Tab AA). By letter dated April 9, 1990, the Appellant adjusted its calculations on Jacket No. 245-004; i.e., the cost of slitting was $21,943.00, the tonnage lost in the slitting process was $20,898.00, and the round-trip freight charges were $1,116.00 (R4 File, Tab CC). 7 See, note 6 supra. 8 On October 17, 1989, the Appellant wrote to the Contracting Officer concerning its additional costs resulting from the late arrival of the Government-furnished camera copy under Jacket No. 245-004, which caused the Contractor to experience ". . . excessive down time on our presses along with anticipated lost paper sales (R4 File, Tab W). As indicated in the Appellant's letter, the camera copy was expected to arrive the morning of October 10, 1989, and the Contractor hoped to have it on one of its presses (Press No. 22) by noon that day, and on another (Press No. 6) early on October 12, 1989. However, the camera copy did not arrive until late on October 12, 1989. Because of this, the Appellant claimed a combined loss for both presses of $51,281.00; i.e., a loss on Press No. 22 of $44,892.00 ($27,550.00 for 58 hours of downtime plus $17,342.00 in lost paper profit) and a loss on Press No. 6 of $6,389.00 ($3,893.00 for 11-1/2 hours of downtime plus $2,496.00 in lost paper profit, as corrected by the Appellant's letter of January 5, 1990) (R4 File, Tabs W and AA). 9 Jacket No. 245-006 is incorrectly shown as Jacket No. 245-046 in the Joint Stipulation. This is an obvious typographical error which the Board corrects herein. 10 The PPD review concerned the Appellant's revised press layouts in light of the changes to the contracts under both Jackets (R4 File, Tabs EE, FF and HH). The record shows that after reviewing the Contractor's adjustments, the PPD staff not only agreed that the Appellant's revised press layout plan was reasonable, but they could not suggest a better plan (R4 File, Tabs HH and KK). 11 See, OIG Audit Report, Basis of Claim-Jacket Number 245-004 and Basis of Claim-Jacket Number 245-006, p. 1. As indicated in the OIG Audit Report, the premise behind the Appellant's claim under Jacket No. 245-004 was that the Government (a) made a constructive change to the contract when it reduced the number of pages in the tax booklet, and (b) caused a disruption to the Contractor's operations by providing camera copy late. As for its Jacket No. 245-006 claim, the Appellant's comparable premise was that the Government caused a change in the Contractor's production methods by reducing the number of pages in the tax booklet. 12 As indicated in the Joint Stipulation, the OIG auditors called one of the costing accounting methods they employed the "specific cost" method. See, OIG Audit Report, Results of Audit, p. 2. In Government contract law parlance, the "specific cost" method is usually called the "actual" cost method. See, John Cibinic, Jr. & Ralph C. Nash, Jr., Administration of Government Contracts 2d ed., (The George Washington University, 1986), p. 508 (hereinafter Cibinic and Nash). Accordingly, except for citations to the Joint Stipulation, the OIG Audit Report, or other references to the R4 File where the term "specific cost" is used, such as in briefs, the Board prefers, and will employ the common Government contract law name for this cost accounting technique-the "actual" cost method-in this opinion. 13 See, OIG Audit Report, Results of Audit, � 1, p. 2. 14 See, OIG Audit Report, Specific Cost Method, p. 2 and Appendix IV. 15 See, OIG Audit Report, Results of Audit, � 2, p. 2. The OIG auditors believed that the "total cost" method" was preferable for evaluating the Appellant's claims, since the Contractor changed planned production methods to accommodate the page reductions by the Government. OIG Audit Report, Results of Audit, p. 2. Furthermore, the "total cost" method restored the Appellant to the same financial position-i.e., profit and loss position-that the Contractor planned to have before the changes and delays by the Respondent. Id. In that regard, the OIG auditors found that the Appellant had bid these jobs at a loss, that it did not intend to recover its estimated costs, and that it had sought these contracts to be competitive and to have work for its employees to "avoid potential layoff's [sic] during a somewhat slack period of [its] business cycle." See, R4 File, Tabs LL and MM. Also see, OIG Audit Report, Total Cost Method, p. 3. Moreover, the OIG auditors thought that the "total cost" method was more appropriate in this case ". . . because the net impact of the various changes made by the Government was to benefit the [C]ontractor by reducing the [C]ontractor's anticipated losses by $54,505.00 (from $154,598.00 to $100,093.00) on Jacket [No.] 245-004 and by $37,219.00 (from a $26,356.00 loss to a $10,863.00 profit) on Jacket [No.] 245-006." See, OIG Audit Report, Total Cost Method, p. 2. Thus, they concluded that ". . . when the Government reduced the work (i.e. page count) to be performed by the [C] ontractor, a smaller loss was realized on Jacket Number 245-004, and a profit was realized on Jacket Number 245-006." See, OIG Audit Report, Total Cost Method, p. 3. 16 The Contracting Officer based his decision on the Appellant's admission that it had bid both jobs at a loss. As explained in the "Final Decision Notice," the rationale for the decision was: "The basic theory to an equitable adjustment is to leave the parties in the same position costwise and profitwise as they were had there been no change. The basic profit or loss position of the parties is a result of the original contract formation process and changes should not be allowed to alter that position." See, R4 File, Tab UU, � 3. 17 Actually, the OIG auditors recommended Government credits of $54,505.00 and $37,219.00 on Jacket Nos. 245-004 and 245-006, respectively. See, OIG Audit Report, Total Cost Method, p. 2. Thus, there is a $5,000.00 difference between the actual credit taken by the Government and the credit recommended by the OIG auditors for Jacket No. 245-006. The record discloses that the $37,219.00 figure was adopted by the Contracting Officer in directing the preparation of a contract modification for Jacket No. 245-006 (R4 File, Tabs PP and VV). However, when the Respondent issued a contract modification for Jacket No. 245-006 only $32,219.00 was claimed as a credit (R4 File, Tab WW). Therefore, the total actual credit claimed by the Government and subtracted from another contract awarded to the Appellant was $86,724.00 (R4 File, Tab XX). 18 Both parties submitted briefs setting forth their respective positions on the issues in this appeal. The Brief of Appellant Banta Corporation was filed with the Board on November 7, 1991 (hereinafter App. Brf.). The Respondent's Brief was also submitted to the Board on November 7, 1991 (hereinafter Res. Brf.). In addition, both parties submitted reply briefs on November 22, 1991 (hereinafter App. R. Brf. and Res. R. Brf., respectively). The Board's understanding of the positions of the parties is based on the Appellant's Complaint, the Respondent's Answer, the formal briefs filed by the parties, and the discussions at the prehearing conference on July 23, 1991. 19 In making this argument, the Appellant challenges the OIG auditors' reliance on the Contractor's own standard estimates for comparison purposes. App. Brf., p. 6. The Appellant argues that the use of such standard estimates is not favored by the courts or contract appeals boards and may not be used unless they are shown to be accurate. App. Brf., pp. 5, 6 (citing, S. N. Nielsen Company v. United States, 141 Ct.Cl. 793 (1958); Air-A-Plane Corporation, ASBCA No. 3842, 60-1 BCA � 2,547 (1960) at p. 12,229; McBride, Government Contracts (Mathew Bender & Co. 1987), at 28-557 (McBride). In that regard, the Appellant relies on its own auditing expert, Jerry L. Turner, to explain that the Contractor's actual total costs deviated substantially from standard estimates on all of its 1989 GPO contracts, including the two involved in this appeal. App. Brf., p. 6 (citing, Affidavit of Jerry L. Turner, �� 21-22) (Turner Affidavit). See also, Affidavit of Allan J. Williamson, �� 4-7 (Williamson Affidavit). Furthermore, the Appellant believes that notwithstanding any other shortcomings with the "total cost" approach, the Respondent's use of the standard estimates for the purposes of the audit had only "marginal relevance," particularly since the actual contract costs deviated substantially from those estimates. App. R. Brf, p. 3. Therefore, the Appellant also contends that as the Respondent failed to develop any reliable evidence of what the Contractor's actual costs on the two contracts would have been without the changes, the "total cost" method cannot be used in this case, ". . . even if it was appropriate to do so as a matter of contract law." Id. 20 The Appellant rejects the Respondent's argument that the page reductions in the two tax booklets also reduced the level of effort involved in the performance of the contracts. App. R. Brf., p. 1. To the contrary, the Contractor contends that the undisputed evidence shows that the reduced page counts substantially increased the level of effort. Id. (citing, Williamson Affidavit, � 9). As for GPO's argument that it is entitled to a credit for the changes that reduced the contractor's cost of performance, the Appellant says that it gave the Government such a credit, but insists that it should be allowed to recover its increased costs to the extent that they exceed the costs avoided. App. Brf., p. 3; App. R. Brf., p. 2. 21 According to the Appellant, the "specific cost" method would result in an equitable adjustment which considered the reasonable cost of the extra labor and materials plus appropriate overhead markups, plus profit, based on the actual costs incurred by a contractor. App. Brf., p. 2 (citing, McBride, note 19 supra, at 28-555; Ocean Technology, ASBCA No. 21363, 78-1 BCA � 13,204). 22 The Appellant notes that the Claims Court has stated that the "total cost" method is ". . . tolerated only when no other mode . . . [is] available. . .". App. Brf., p. 4 (citing, WRB Corp. v. United States, 183 Ct.Cl. 409 (1968)). The reason behind the hostility of the Court to the "total cost" approach is that it involves speculation, and hence is not as reliable as the "specific cost" method. App. Brf. p. 5. 23 The Appellant contends that the purpose of an equitable adjustment is to compensate a contractor for the difference between the total cost of performing the work as bid and the total cost performing the work as required. App. Brf., p. 5. (citing, Air-A-Plane Corporation, supra, 60-1 BCA � 2,547; McBride, note 19 supra, at 28-556-57). Therefore, as the Appellant sees it, the failure of the OIG auditors to determine the Contractor's actual total cost of the contracts as bid, defeats the recognized purpose of an equitable pricing adjustment. Id. 24 The Respondent also notes that the concept of retaining a contractor's loss position is not unique to claims filed under the "Changes" clause. Res. Brf., p. 7. Thus, the Federal Acquisition Regulation (FAR) provisions governing termination for convenience of fixed-price contracts states that any settlement ". . . shall not allow a profit if it appears that the contractor would have incurred a loss had the entire contract been completed." See, FAR � 49.203 (Adjustment for loss). 25 The Government-ordered changes to Jacket Nos. 245-004 and 245-006 required the Appellant to print 37,608,000 fewer pages and 7,288,000 fewer pages, respectively. According to the OIG audit, the page reduction on Jacket No. 245-004 reduced the amount of the Appellant's loss from $154,589.00 to $100,093.00. As for Jacket No. 245-006, the Contractor's estimated loss of $26,356.00 was converted into a $10,863.00 profit after the change. Res. Brf., p. 5. See, R4 File, Tab PP, p. 2. 26 The Respondent points to the Appellant's billings to show that the Contractor accepted this concept. Res. Brf., p. 5., fn. 2 (citing, R4 File, Tab PP, pp. 12, 14). Indeed, the Respondent believes that the reduction in the Appellant's potential losses under the contracts because of the changes was "dramatic". Res. Brf., p. 5. See, note 25 supra. 27 The Respondent observes that the deletion of work or items under a firm fixed-price supply contract usually reduces the contractor's performance costs, gives it an advantage over other bidders who competed for the contract, and entitles the Government to a concomitant price reduction. Res. Brf., p. 4 (citing, Plaza Maya Limited Partnership, GSBCA No. 9086, 91-1 BCA � 23,425; Goetz Demolition Company, ASBCA No. 39129, 90-3 BCA � 23,241; Art Cap Company, Inc., ASBCA No. 3793, 58-1 BCA � 1,623). When work is deleted, the general practice is for the Government to lower the contract price by the amount of costs saved by the contractor because of the changes. Res. Brf., p. 5. Also, under the standard Government "Changes" clause, the Government does not have to expressly reserve a right to take credit for contract changes. Res. Brf., p. 4 (citing, Madison Park Clothes, Inc., ASBCA Nos. 4155, 4166, 4200, 61-1 BCA � 2,966). 28 The Respondent dismisses the Appellant's claim that factors other than the Government-ordered changes were responsible for its improved financial performance, by arguing that the Contractor has failed to identify any such factors. Res. R. Brf., p. 4. Furthermore, the Respondent contends that the Appellant's reliance on Keco Industries for the proposition that Government changes can convert a loss contract into one for profit, is misplaced. Keco Industries, Inc., supra, 72-2 BCA � 9,576. Res. R. Brf., p. 5. The Respondent believes that Keco Industries stands for nothing more than the principle that ". . . evidence developed during the bidding process is probative of the amount of recovery, if any, available following a Government change." Id. 29 Specifically, the Board is without jurisdiction to consider "pure" breach of contract claims-i.e., breach claims not redressable under a specific contract provision. The Wessel Company, Inc., GPO BCA 8-90 (February 28, 1992), Sl. op. at 46 (hereinafter Wessel Company). In that regard, it was understood by the parties in Wessel Company that the CDA did not apply GPO contracts. See, The Wessel Company, Inc., supra, Sl. op. at 17, fn. 18 (citing, Tatelbaum v. United States, 749 F.2d 729, 730 (Fed. Cir. 1984)). 30 The Board was established by the Public Printer in 1984. GPO Instruction 110.10C, Subject: Establishment of the Board of Contract Appeals, dated September 17, 1984. Prior to the Board's creation, appeals from decisions of GPO Contracting Officers were considered by ad hoc contract appeals boards. R.C. Swanson Printing and Typesetting Company, GPO BCA 15-90 (March 6, 1992), Sl. op. at 28, fn. 30. The opinions of these ad hoc boards are cited herein as "GPOCAB" in order to differentiate them from the decisions the Board. It is the Board's policy to follow the decisions of the ad hoc boards where applicable and appropriate. See, e.g., Chavis and Chavis Printing, GPO BCA 20-90 (February 6, 1991), Sl. op. at 9, fn. 9; Stephenson, Inc., GPO BCA 02-88 (December 20, 1991), Sl. op. at 18, fn. 20. 31 According to the Respondent, under the "total cost" method, costs incurred following a change are measured by computing the total cost of performance of the entire job and subtracting the original estimate of the work in question made during the bidding process. The difference between the total cost of the work and the bid estimate is the proper cost to be included in the equitable adjustment. The Respondent contends that this computation method resolves all doubts about performance costs in favor of the Appellant by assuming that all such costs exceeding the original estimate resulted from the change. Res. Brf., p. 6. In that regard, the Respondent believes that the Appellant's reliance on Turnbull Inc. v. United States, supra, 389 F.2d 1007, and F.H. McGraw & Co. v. United States, supra, 130 F.Supp. 394, is misplaced. The Respondent states that the reason the "total cost" method is not favored by the courts is that, under normal circumstances, it is seen as biased in favor of the equitable adjustment claimant. Res. R. Brf., p. 1. As indicated by the Claims Court in McGraw, the "total cost" method can be unsatisfactory because ". . . it assumes plaintiff's costs were reasonable and that plaintiff was not responsible for any increase in cost, and because it assumes that plaintiff's bid was accurately computed. . .". Id. (citing, F.H. McGraw & Co. v. United States, supra, 130 F.Supp. at 400). The Respondent argues that such assumptions are not present in this case. Id. 32 The Respondent also believes that using the "specific cost" method would be wholly inappropriate in this case because it would allow a result which is contrary to well- established equitable adjustment principles, namely converting a firm fixed-price contract originally bid at a loss into a cost reimbursement contract. Res. Brf., pp. 4, 7. See also, Res. R. Brf., p. 4. 33 In the Respondent's view, when the impact of the changes is coupled with the Appellant's "sophisticated" cost estimating system, the conclusion is warranted that the "total cost" method is both reliable and appropriate in this case. Res. R. Brf., p. 3. Consequently, the Respondent also concludes that it was not error for the Contracting Officer to rely on the methodology used by the audit team, as shown in the OIG Audit Report, in reaching his final decision in this case. Res. Brf., p. 8. Although he awarded the Respondent a credit on both contracts, the pre-change loss position of the Appellant was maintained, and thus the result was consistent with Government contract law and regulations. Res. Brf., p. 9; Res. R. Brf., pp. 5-6. Furthermore, the Respondent finds it "curious" that the Appellant is attempting to undermine its own bid estimates. Res. R. Brf., p. 2. See, note 19 supra. Regardless, the Respondent believes that the two bids prepared by the Appellant's Estimating Manager using the company's formal cost estimating system were an accurate representation of the historical costs for such work, as reflected in the Contractor's job cost system. Id. Since the OIG auditors also concluded that the Appellant's costs were, for the most part, reasonable, the Respondent argues that the Appellant's bid based on the company's standard estimates was an accurate one, and that the application of the "total cost" method in this case was appropriate. Id. 34 The record on which the Board's decision is based consists of: (1) the Pleadings (Appellant's Complaint; Respondent's Answer); (2) the R4 File (Tabs A-YY); (3) the Prehearing Conference Report; (4) the Stipulation of Undisputed Facts signed by both parties; and (5) the briefs submitted by the parties pursuant to the Board's Briefing Order (the Appellant's Brief, the Appellant's Reply Brief, the Respondent's Brief, and the Respondent's Reply Brief). 35 In a typical equitable adjustment situation involving deleted work, it is generally the Government which seeks a decision on the basis of "actual cost," while the contractor usually advances the "total cost" method of calculation. See, e.g., McMillan Brothers Constructors, Inc., EBCA No. 328-10-84, 91-1 BCA � 23,351; Akon, Inc., ENGBCA No. 5593, 90-3 BCA � 23,250; Ordnance Materials, Inc., ASBCA No. 32371, 88-3 BCA � 20,910. See also, Cibinic and Nash, p. 483. But see, E.W. Eldridge, Inc., ENGBCA No. 5269, 90-3 BCA � 23,080 (the board used the highest "total cost" approach figure presented by the Government). 36 The Board regrets that it has taken almost two years to issue a decision in this case. However, apart from the complex nature of the appeal, an additional obstacle to a quick resolution was the state of this record. On occasion, an appeal is filed which should not proceed without a formal hearing. See, D.M. Summers, Inc., VACA No. 2750, 89-3 BCA � 22,123, at 111,274. In retrospect, this was such a case. The appeal record shows that the Appellant initially asked for a hearing in this matter. See, Complaint, Fourth Claim for Relief, � a), p. 18. Board Rules, Rule 8. Yet, at the conclusion of the prehearing conference on July 23, 1991, the parties agreed with the Board that except for one telephone conversation, all other material facts were fairly well understood and no hearing was necessary. See, Prehearing Conference Report, dated August 20, 1991, p. 7 (hereinafter PCR). Consequently, a hearing in this appeal was waived. Id. Instead, the matter was submitted to the Board for resolution on the record, as supplemented by the Joint Stipulation and the parties' briefs and reply briefs, including affidavits. See, PCR, pp. 7-8. Board Rules, Rule 11. After wrestling with this record for almost two years, the Board is now ready to admit that even though there is enough undisputed evidence to decide the issues, it may have been a mistake not to conduct a hearing in this matter. Among other things, the record contains certain evidentiary conflicts which perhaps could have been resolved by a hearing. See, note 39 infra. Furthermore, the Board is confronted with "dueling affidavits"; i.e., affidavits from the party opponents contradicting each other on essential points, which as the Armed Services Board of Contract Appeals (hereinafter ASBCA) noted is "not the stuff of which positive findings are made." COPE, Inc. d/b/a L.D. Copenhagen Mechanical Contractor, ASBCA No. 30,418, 87-1 BCA � 19,420. Perhaps the problem is endemic to Rule 11 proceedings, because it is undeniable that "[a]ffidavits permit artfully drawn statements and convenient omissions which are not subject to the persistent and probing questions of an examiner . . .", D.M. Summers, Inc., supra, 89-3 BCA � 22,123, at 111,274, and may "reflect a conscious attempt to achieve a specific result." See, Shumate Constructors, Inc., VABCA No. 2772, 90-3 BCA � 22,946, at 115,192. See also, Schoenfeld Associates, VABCA Nos. 2104, 2510-2517, 87-2 BCA � 19,648; ACS Construction Company, Inc., ASBCS Nos. 28193 and 28666, 86-1 BCA � 18,627; Bruce-Anderson, Inc., ASBCA No. 28099, 84-1 BCA � 17,177. Nonetheless, it is well-settled that an appellant in a Rule 11 proceeding is responsible for providing adequate evidence to allow the board to make a finding in its favor. Shumate Constructors, Inc., supra, 90-3 BCA � 22,946, at 115,192 (citing, Jan-Beck Associates, VABCA Nos. 2107, et al., 87-2 BCA � 19,831; Schoenfeld Associates, supra, 87-2 BCA � 19,648). See also, Dawson Construction Company, Inc., VABCA Nos. 2000, 2016, 86-3 BCA � 19,322, at 97,723 ("[T]he 'essential burden of establishing the fundamental facts of liability, causation and resultant injury' remains with the Contractor. [Citation omitted.]"); J.C. Edwards Contracting and Engineering, Inc., VABCA Nos. 1947, 1969, 85-2 BCA � 18,068, at 90,690 ("Where an appeal presents an affirmative claim by a contractor against the Government, the ultimate burden of proof or persuasion is upon the claimant and the final evidentiary question is whether the claim is supported by substantial evidence and proved by a preponderance of the evidence. [Citation omitted.]"). The Board cannot avoid its responsibility either, and we make our decision on the record as we find it. Shumate Constructors, Inc., supra, 90-3 BCA � 22,946, at 115,192. 37 The reason for this approach was stated in Bruce Construction Corporation: "Since the purpose underlying such adjustments is to safeguard the contractor against increased costs engendered by the modification, it appears patent that the measure of damages cannot be the value received by the Government, but must be more closely related to and contingent upon the altered position in which the contractor finds himself by reason of the modification." Bruce Construction Corporation v. United States, supra, 163 Ct.Cl. at 100, 324 F.2d at 518. 38 Although the Claims Court speaks of ". . . converting a loss to a profit or vice versa, for reasons unrelated to a change[.]", this is not to say that a loss can be transformed into a profit for reasons related to a change. Instead, the cases tell us that the financial balance must be maintained, and indeed, the underscored language appears to be extraneous. See, Aoki Corporation, ENGBCA No. PCC-62, 91-2 BCA � 23,848, at 119,522 (quoting, Pacific Architects and Engineers, Inc. v. United States, supra, 203 Ct.Cl. 499, 491 F.2d 734, without the underscored words). Indeed, the ASBCA has held that it is improper for the Government to add profit to a deductive change because, on a losing contract, the price adjustment should not add to the loss the contractor would have experienced if there had been no change order. CRF, A Joint Venture, supra, 76-1 BCA � 11,857, at 56,804 (citing, Keco Industries, Inc. v. United States, supra, 176 Ct.Cl. 983, 364 F.2d 838). The reason for this rule is that: ". . . elimination of a profit factor on deleted items [under a loss contract] is necessary in order to avoid [increasing the] loss to [the contractor] resulting from the deletion." Id., at 56,804-05. Furthermore, the purpose of this equitable adjustment principle in loss situations is: ". . . to safeguard the contractor against increased costs engendered by the modification," thereby ". . . keeping the contractor whole." Id., at 56,805. See also, Langoma Industries, Inc., ASBCA No. 3890 et al., 57-2 BCA � 1370. 39 In reaching this conclusion, the Board recognizes that there is a conflict in the record on this point, and that the Appellant is the source of the confusion. Thus, the record shows that on June 11, 1990, the Appellant's Estimating Manager, James A. Liebhauser, wrote to the OIG's Supervisory Auditor, Edwin L. Hawse, supplying certain information related to the Contractor's equitable adjustment claims. Among other things in that letter, Liebhauser stated with respect to Jacket No. 245-004: "Please refer to the attached Estimate Workup Sheet (Exhibit A) showing our manufacturing cost workup with a (-171/2 percent GM) applied in order to match unrealistic bids in effect in 1989. As stated by Mr. Williamson our intent in taking on GPO work in this time frame, at low margins, is to avoid potential layoff's [sic] during a somewhat slack period of our business cycle." See, Letter from James A. Liebhauser to Mr. Edwin Hawse, dated June 11, 1990, � I. General (1), p. 1 (R4 File, Tab MM). [Emphasis added.] Similarly, for Jacket No. 245-006, Liebhauser said: "Please refer to the attached Estimate Workup Sheet (Exhibit A) showing our manufacturing cost workup with a (-10.6 percent GM) applied. Again the same background applies as on Jacket [Number] 245-004." Id., � I. General (1), p. 3 (R4 File, Tab MM). [Emphasis added.] Indeed, at the prehearing conference on July 23, 1991, Counsel for the Appellant admitted that the Contractor had anticipated a loss when it bid on the contract. PCR, p. 5. However, the record also shows that on November 12, 1990, after the Appellant had been informed of the results of the OIG's audit, Liebhauser wrote to the Contracting Officer and stated, in pertinent part: "Although 1989 was a very competitive bid year, the [Appellant] in no way planned on taking work with a 17-1/2 percent paper and manufacturing loss. The numbers you refer to on our 'estimate' are just numbers used as a basis to determine on a year-in and year- out method where pricing levels are going. . . . I would wonder why any of your auditing staff would realistically assume that any bidder would sell paper, which is at least 50 percent of the job cost, for less money than they are pay for the material." See, Letter dated November 12, 1990 from James A. Liebhauser to Mr. Jack G. Marken, dated November 12, 1990, � 4, p. 1 (R4 File, Tab SS). [Emphasis added.] In the Board's view, the Appellant's second letter is a self-serving an unpersuasive effort to explain away its low bid "estimates," which the Respondent had relied on in awarding the two contracts. Cf., Singleton Contracting Corporation, GSBCA No. 8548, 90-2 BCA � 22,748. Accordingly, when the second letter is also considered in light of the Contractor's subsequent prehearing conference admission, the Board has no trouble believing that the Appellant's earlier communication with GPO is factually closer to the truth. See, e.g., Gulf Contracting, Inc., ASBCA Nos. 30195, 32839, 33867, 90-1 BCA � 22,393; Metroplex Industrial Constructors, Inc., EBCA Nos. 397-6-87, 402-12-87 through 404-12-87, 89-3 BCA � 22,174. 40 As already mentioned, the Respondent also contends that the Appellant's demand for reimbursement is really a disguised breach of contract claim which cannot be considered under the "Changes" clause. R. Brf., p. 7. As a rule, breach of contract damages are not recoverable if the contract itself provides a remedy. See, Triax-Pacific, A Joint Venture, ASBCA No. 36353, 91-2 BCA � 23,724. However, even though the Board has no jurisdiction to hear breach of contract claims, see, note 29 supra, it has stated that breach of contract damages and contract provisions for extensions of time are not mutually exclusive; i.e., in the appropriate forum, the fact that the contract includes a provision for extension of time to perform does not exclude the possibility that recovery may also be had in the form of damages for breach of contract. The Wessel Company, Inc., supra, Sl. op. at 27, fn. 29 (citing, The Kehm Corporation v. United States, 93 F.Supp. 620, 624-25 (Ct.Cl. 1950)). The simple holding of Wessel Company, another case involving the impact of Government delays, is that the Board is not an appropriate forum to resolve "pure" breach of contract claims. 41 One exception to this rule are delays resulting from defective specifications. See, J.W. Hurst & Son Awnings, Inc., ASBCA No. 4167, 59-1 BCA � 2,095. See also, Donald R. Stewart and Associates, AGBCA Nos. 84-226-1, 84-227-1, 84-228-1, 84-239-1, 84-240-1, 84-241-1, 85-168-1, 89-222-1. 89-223-1, 89-224-1, 89-225-1, 92-1 BCA � 23,705 (Government delay in approving a seasonal shutdown request allowed the contractor to recoup idle equipment costs); Smith-Cothran, Inc., DOTBCA Nos. 1931, 2022, 89-1 BCA � 21,554 (contractor only entitled to compensable costs which would not otherwise have been incurred); E. Patti & Sons, Inc., PSBCA Nos. 1024, 1100, 85-2 BCA � 18,144. 42 Judge Davis joined in the court's opinion because he understood it to " . . . lay down and apply the same standard as has been used by the Boards of Contract Appeals in cases such as Ivey Bros. Construction Co., Inc., ENGBCA No. 1764 (1960) (unreported decision); Gust K. Newberg Construction Co., ENGBCA No. 2754, 67-2 BCA� 6,490, at 30,116-18; I.K. Construction Co., ENGBCA No. 10987, 67-1 BCA � 6,271, at 29,027; Eastridge Excavating Contractors, Inc., ENGBCA No. 2683, 67-1 BCA � 6,379, at 29,534-35; A.L. Harding, Inc., DCAB No. PR-44, 65-2 BCA � 5,261, at 24,777, aff'd on reconsid., 66-1 BCA � 5,463, at 25,590-91, and Power City Construction & Equipment, Inc., IBCA No. 490-4-65, 68-1 BCA � 7,126, at 33,024-26. That rule permits an equitable adjustment to cover increased costs which were the direct and necessary result of the change or changed conditions, where the condition or the change directly leads to disruption, extra work, or new procedures. [Emphasis added.]" Paul Hardeman, Inc. v. United States, 186 Ct.Cl. at 752, 406 F.2d 1357. 43 This accounting principle basically adopts the "standby ownership expense" rule which allows reimbursement for idle equipment which was reasonably and necessarily set aside and awaiting use in performing the contract. Cf., J.D. Shotwell Company, ASBCA No. 8961, 65-2 BCA � 5,243 (If the board concludes that a contractor would prudently have held the idle equipment in readiness to perform the Government contract rather than making some other disposition of it, the Government will be charged for that equipment). See also, Wardroup & Associates, ASBCA No. 23433, 79-1 BCA � 13,693. It should be noted, however, that profit is not included in any adjustment made for increases in cost of performance caused by the delay or interruption of contract work. See, Cibinic and Nash, p. 481 (citing, FAR � 52.212-15). 44 The contractor, of course, has the burden of proving a causal connection between the delay and its costs. Cooper Mechanical Contractors and Continental Engineering, IBCA Nos. 2744-2749, 2692, 2706-2713, 2714, 92-2 BCA � 24,821; Gerald Miller Construction Company, IBCA No. 2292, 91-2 BCA � 23,829. 45 The Appellant's claim for delay costs for Jacket No. 245-004 is detailed in note 8 supra. Briefly, the Contractor believes that the Government owes it a total of $51,281.00 for downtime and ancillary lost paper profits for two presses (R4 File, Tabs W and AA). 46 The Appellant also claims that equipment downtime costs resulted from the changes on Jacket No. 245-006. As explained in the OIG Audit Report, these downtime costs were incurred because the press originally scheduled for Jacket No. 245-006 could not be used for other printing work (R4 File, Tab PP, p. 4). In that regard, the record shows that the changes left the Contractor with insufficient time to find other work for the press, because jobs are usually scheduled 3-4 months in advance (R4 File, Tab Z, p. 1). Since the Board agrees that the changes were directly responsible for the equipment downtime experienced by the Appellant, it sustains the claim to the extent recommended by the OIG auditors, which it finds reasonable. Accordingly, the downtime claim for Jacket No. 245-006 is allowed in the amount indicated in Appendix II of this decision. 47 As previously indicated, the "specific cost" method referred to in the Joint Stipulation, the OIG Audit Report, and in the parties' posthearing briefs, is usually called the "actual" cost method. See, note 12 supra. Accordingly, the Board will hereinafter use the term "actual cost" method when referring to this cost accounting technique in this opinion. 48 The reason for this bias was clearly stated by the Federal Circuit in Dawco Construction, Inc. v. United States, when it said: ". . . the 'actual cost method' is preferred because it provides the court, or contracting officer, with documented underlying expenses, ensuring that the final amount of the equitable adjustment will be just that-equitable-and not a windfall for either the [G]overnment or the contractor." Dawco Construction, Inc. v. United States, 930 F.2d 872, 882 (Fed.Cir. 1991), rev'g, 18 Cl.Ct. 682 (1990). 49 While the contractor's original or bid estimate can be used to determine the cost of the work, later evidence, such as purchase order prices or vendor quotations, are normally better evidence of the costs that the contractor would have incurred. See, e.g., Atlantic Electric Company, GSBCA No. 6016, 83-1 BCA � 16,484. If there is no such evidence, however, the bid estimate may be considered the best available proof of this amount. Select Contractors, Inc., ENGBCA No. 3919, 82-2 BCA � 15,869; Dawson Construction Company, Inc., GSBCA No. 5672(5308)-Rein, 81-2 BCA � 15,387, aff'd on reconsid., 82-2 BCA � 15,914; Onetta Boat Works, Inc., ENGBCA No. 3733, 81-2 BCA � 15,279; Pruitt, Inc., ASBCA No. 18344, 73-2 BCA � 10,213. But see, Ordnance Materials, Inc., supra, 88-3 BCA � 29,910. 50 Even if estimates are used, the contractor still has the burden of proof. Cf., Lagarelli Brothers Construction Company, Inc., ASBCA No. 34793, 88-1 BCA � 20,363; Clary Corporation, ASBCA No. 19,274, 74-2 BCA � 10,947. In that regard, expert testimony is often helpful in the presentation of estimates, see, e.g., Turnbull, Inc. v. United States, supra, 389 F.2d 1007 (1967); Sovereign Construction Company, ASBCA No. 17792, 75-1 BCA � 11,251, and in verifying the validity of the statistical methods and estimating techniques used as well as demonstrating that they are properly applied. See, e.g., Rohr Industries, Inc., ENGBCA No. 4094, 82-2 BCA � 15,867. See generally, Cibinic and Nash, pp. 485-86, 508-13. Perhaps the best use of expert testimony is to show the relationship of actual and estimated cost data to the circumstances giving rise to the adjustment. See, e.g., Coastal Drydock and Repair Corporation, supra, 91-1 BCA � 23,324, at 117,002 (citing, Luria Brothers & Co. v. United States, supra, 369 F.2d 701; Paccon, Inc., ASBCA No. 7890, 65-2 BCA � 4,996, mot. for reconsid. denied, 65-2 BCA � 5227). 51 As the Federal Circuit indicated in Servidone Construction Corporation v. United States, "[a] trial court must use the total cost method with caution and as a last resort." Servidone Construction Corporation v. United States, 931 F.2d 860, 861 (Fed. Cir. 1991), aff'g, 19 Cl.Ct. 346 (1990). Similarly, the ASBCA has stated that: "[The] total cost [method] . . . has only been tolerated when no other mode of proof was available and when the reliability of the supporting evidence was fully substantiated." Santa Fe Engineers, Inc., supra, 90-3 BCA � 23,020, at 115,556. The reason for this mistrust of the "total cost" method is found in the potential for bidding inaccuracies to unjustifiably reduce the contractor's estimated costs, and for performance inefficiencies to inflate a contractor's costs, thus skewing an accurate computation of damages. Servidone Construction Corporation v. United States, supra, 931 F.2d at 861-62. Consequently, before a board or a court will approve the "total cost" method, it must be satisfied that: (1) the Government is not charged with the difference between actual cost incurred and the bid merely because the difference exists; (2) proper safeguards exist; (3) there is no better method of proving costs; and (4) there is some basis of reaching a determination of a reasonable amount related to the entitlement found. WRB Corporation v. United States, supra, 183 Ct.Cl. 409; Ingalls Shipbuilding Division, Litton Systems, Inc., ASBCA No. 17579, 78-1 BCA � 13,038; Fermont Division, Dynamics Corporation of American, ASBCA No. 15806, 75-1 BCA � 11,139. 52 It also seems to the Board that the nature of the evidence in this case clearly refutes the first safeguard as well; i.e., that it is impossible or highly impracticable to determine the Contractor's losses with any reasonable degree of accuracy. However, since the failure to prove even one criterion defeats the WRB Corporation test, it is unnecessary for the Board to explain the reasons for its belief. 53 In addition, a contractor must also show the total amount of money to which it is entitled, Lawrence D. Krause, supra, 82-2 BCA � 16,129, at 80,073; Onetta Boat Works, Inc., supra, 81-2 BCA � 15,279; Click Company, Inc., GSBCA No. 3007, 70-1 BCA � 8335; Campbell Company, General Contractor, Inc., IBCA No. 722, 69-1 BCA � 7574, and the causal connection between its increased costs and the changes ordered by the Government, S.W. Electronics & Manufacturing Corporation, supra, 77-2 BCA � 12,631, aff'd, 228 Ct.Cl. 333, 655 F.2d 1078. See generally, Cibinic and Nash, pp. 504-05. 54 As explained by the Claims Court: "The search for 'reasonability,'. . ., is not limited to inquiry of such factors as 'fair market value' or 'historical cost.' . . . The reasonable cost concept includes both 'objective' and 'subjective' elements . . . The objective focus is on the costs that would have been incurred by a prudent businessman placed in a similar overall competitive situation . . . However, unless it also takes into account the subjective situation of the contractor, a test of 'reasonable cost' is incomplete. . . ." Nager Electric Company, Inc., supra, 194 Ct.Cl. at 851-53, 442 F.2d at 945-46. 55 Indeed, the record shows that the Appellant's bid on Jacket No. 245-004 deviated enough from the range of the other 10 responsive bids that GPO asked the Contractor confirm it before awarding the contract (R4 File, Tab C). 56 As mentioned previously, the Claims Court's guidelines for resolving equitable adjustment disputes instruct us to look at a contractor's subjective situation in our "reasonable cost" analysis. See, note 54 supra. Nager Electric Company, Inc., supra, 194 Ct.Cl. at 851-53, 442 F.2d at 945-46. In that regard, the Board recognizes that the Appellant may have felt that it had sound business reasons for bidding both contracts at a loss here; e.g., remaining competitive and having work for its employees during a slack period. Nonetheless, the Board believes that those subjective reasons, no matter how valid, do not overcome the results of our objective examination of the Appellant's costs under the "prudent businessman" test. 57 See, note 54 supra. 58 The reason the "jury verdict" technique is usually viewed as an evidentiary tool, rather than as a method of proof of the amount itself, is simple enough. As explained by the ASBCA: "There is neither a single nor a precise method of arriving at the dollar amount of an equitable adjustment. In general we seek to reach a figure as an equitable adjustment which represents the cost to a reasonably efficient contract[or] of performing the changed work under his contract. Evidence of this amount may be found in the actual costs of the particular contract, to the extent that those costs are not shown to be other than reasonable, and in engineering estimates of reasonable cost made by experts who bring into play their experience and knowledge to attempt to visualize the price at which that reasonably efficient contractor could perform. Neither estimating nor accounting are such exact arts that either can produce figures which will be agreed to by all parties without legitimate argument. We recognize that often, despite protestations to the contrary, extreme positions on monetary entitlement are taken during litigation. . . . [We must determine] . . . a figure as the amount of an equitable adjustment . . . [which] . . . ordinarily is . . . some place between the amount contended for by each party to the litigation. . . . This is a figure which in the view of the trier of the facts is fair in light of all the facts of the case, or, put another way, is supported by consideration of the entire record." See, Johnson, Drake & Piper, Inc., supra, 65-2 BCA � 4868, at 23,073. Similarly, the Agriculture Board of Contract Appeals has observed that: "It is not essential that the amount be ascertainable with absolute exactness or mathematical precision. [Citations omitted.] It is enough if the testimony and evidence adduced is sufficient to enable the court or board (acting as the jury) to make a fair and reasonable approximation of the amount recoverable. [Citations omitted.]" See, Lawrence D. Krause, supra, 82-2 BCA � 16,129, at 80,073. See also, Greenwood Construction Corporation, Inc., AGBCA No. 75-127, 78-1 BCA � 12,893. 59 In essence, notwithstanding the requirement for proof of costs, the cases disclose a hesitancy to completely deny recovery in cases where it is reasonably certain that an injury did, in fact, occur. See, e.g., Meva Corp. v. United States, 206 Ct.Cl. 203, 220-21, 511 F.2d 548 (1975) (where the court allowed a "jury verdict" recovery because it was "equally clear" that the contractor suffered substantial monetary damage in direct consequence of the Government's breach of contract). See also, e.g., Harold Benson, AGBCA No. 384, 77-1 BCA � 12,490 (where the evidence did not support the amount claimed by the contractor but did indicate that the amount allowed by the contracting officer was too low); Custom Roofing Company, ASBCA No. 19164, 74-2 BCA � 10,925 (where the board granted a "jury verdict" recovery based on "rough estimates"); and Rocky Mountain Construction Company, IBCA No. 1091-12-75, 77-2 BCA � 12,692 (where the board applied the "jury verdict" to an item whose cost was "totally unclear"). Indeed, under the "jury verdict" technique, a board may even go so far as to make its own calculations of an equitable adjustment if it is not satisfied with the computations of either the contractor or the Government. See, e.g., Steve P. Rados, Inc., AGBCA No. 77-130-4, 82-1 BCA � 15,624; Varo, Inc., ASBCA No. 15000, 72-2 BCA � 9,717. In short, the teaching of the cases is that it is error for a trier of fact to totally deny a contractor's claim when entitlement is clear and there is some evidence upon which to base a "jury verdict" recovery. See, e.g., Assurance Company v. United States, supra, 813 F.2d at 1205; S.W. Electronics & Manufacturing Corporation v. United States, supra, 228 Ct.Cl. 333, 655 F.2d at 1088; Electronic & Missile Facilities, Inc. v. United States, supra, 189 Ct.Cl. 237, 416 F.2d at 1358; Eagle Paving, AGBCA No. 75-156, 78-1 BCA � 13,107. Thus, the "jury verdict" method works in harmony with two purposes of the equitable adjustment procedure in general, namely to recognize and give appropriate consideration to the special circumstances of each case, and to avoid blind computations of additional costs or cost savings. G.M. Company Manufacturing Inc., ASBCA No. 2883, 57-2 BCA � 1505, at 5,234. 60 The reason that the courts and boards distrust the "jury verdict" method is because of its primary danger, namely: " . . . the risk that unrealistic assumptions will be adopted and extrapolated, greatly multiplying an award beyond reason, and rewarding preparers of imprecise claims based on undocumented costs with unjustified windfalls." Dawco Construction, Inc. v. United States, supra, 930 F.2d at 882. 61 Even when proof of causation is not fully demonstrated, a board may use the "jury verdict" approach to reduce the amount claimed. See, e.g., Steve P. Rados, Inc., supra, 82-1 BCA � 15,624, where the contractor had provided detailed evidence of the events that had occurred and of the costs which had been incurred, the board made its own computations of the amount of claimed costs that were attributable to Government action. Compare, Joseph Pickard's Sons Company v. United States, 209 Ct.Cl. 643, 532 F.2d 739, 742 (1976) (where the Claims Court refused to use the "jury verdict" method to prove causation). 62 As a rule, the burden of proof in establishing the total amount of an equitable adjustment falls on the party who is claiming the benefit of the adjustment. See, Cibinic and Nash, p. 504. Thus, a contractor has the affirmative burden of proving the amount of money to which it is entitled. Lawrence D. Krause, supra, 82-2 BCA � 16,129; Onetta Boat Works, Inc., supra, 81-2 BCA � 15,279; Globe Construction Co., supra, 78-2 BCA � 13,337. Meanwhile, the Government must establish the amount of the credit it took. Zurfluh Enterprises, Inc., supra, 85-1 BCA � 17,789; CRF, A Joint Venture, supra, 76-1 BCA � 11,857; Hudson Garment Company, Inc., ASBCA No. 4645, 60-1 BCA � 2628. Whether that burden has been met is determined by the "preponderance of the evidence" test. Teledyne McCormick-Selph v. United States, 214 Ct.Cl. 672, 558 F.2d 1000 (1977); Wilbur Smith & Associates, Inc., ASBCA No. 35301, 89-3 BCA � 22,025. See, Cibinic and Nash, p. 504. 63 As explained by the ASBCA: " When a change deletes work, the Government is entitled to an amount equal to what it would have reasonably cost the contractor to have performed the work. In other words, the price reduction for the deletion should leave the contractor in the same financial condition as it would have been the change order had not been issued. [Citation omitted.] While the proper measure of the price reduction is what it would have cost [the contractor] to perform the deleted work, the ascertainment of this figure is not always easy since by definition the 'actual costs' of deleted work are not available." ACS Construction Company, Inc. of Mississippi, ASBCA No. 33550, 87-1 BCA � 19,660, at 99,550. Also see, Condor Reliability Services, Inc., ASBCA No. 40538, 90-3 BCA � 23,254, at 116,675-76. Obviously, if the contractor realized no savings from a change, the Government will not be awarded a price reduction. See, e.g., L.G. Lefler, Inc. v. United States, 6 Cl.Ct. 514 (1984). 64 As indicated in note 63 supra, sustaining this evidentiary burden may not be an easy task for the Government because deleted work is not actually performed. ACS Construction Company, Inc. of Mississippi, supra, 87-1 BCA � 19,660, at 99,550. Consequently, a board may have to find the requisite proof in the "comparative reasonableness" of the estimates presented by the respective parties. Jackson Engineering Company, Inc., supra, 85-3 BCA � 18,418, at 92,492. Indeed, it has been noted that estimates are used almost exclusively to establish the cost of deleted work. Cibinic and Nash, p. 510. See, Arctic Corner, ASBCA No. 29545, 86-3 � 19,304. 65 The Respondent also stipulated that the Government-ordered changes resulted in additional expenses and increased manufacturing costs for the Appellant, and that the Contractor incurred increased costs because of the Government delay in furnishing the camera copy under Jacket No. 245-004. Joint Stipulation, �� 12, 13, p. 4. These stipulations represent conclusions of law which are not binding on the boards or courts. See, Bromley Contracting Company, Inc. v. United States, 14 Cl.Ct. 69, 74 (1987), aff'd, 861 F.2d 729 (Fed. Cir. 1988) (citing, Swift & Company v. Hocking Valley Railroad, 243 U.S. 281, 289, 37 S.Ct, 287, 289-90, 61 L.Ed. 722 (1917); Hegeman-Harris & Company v. United States, 194 Ct.Cl. 574, 581, 440 F.2d 1009, 1012 (1971); Sac and Fox Tribe of Indians v. United States, 161 Ct.Cl. 189, 198, 315 F.2d 896, 901, cert. denied, 375 U.S. 921, 84 S.Ct. 266, 11 L.Ed.2d 165 (1963)); Reynolds Construction, Inc., ASBCA No. 32047, 89-3 BCA � 22,126. Also cf., Sinicropi v. Milone, 915 F.2d 66 (2nd Cir. 1990); National Labor Relations Board Union, Local 6 v. Federal Labor Relations Authority, 842 F.2d 483 (D.C. Cir. 1988). 66 To hold that the Respondent has failed to show a reduction in the Appellant's contractual effort because of the Government-ordered changes is not the same as saying that there was no lessening of the requirements on the Contractor whatsoever. That there was some reduction in the contract here is beyond cavil. However, what the record demonstrates is a reduction in the number of pages per copy, not the number of copies which had to be produced under each contract. See, note 25 supra. Thus, while the page reduction for Jacket No. 245-004 required 37,608,000 fewer total pages, the Appellant nonetheless still had to produce 4,701,000 copies of the tax booklet. Similarly, the Government change to Jacket No. 245-006 subtracted 7,288,000 total pages, but the Contractor was still responsible for producing 911,000 copies of the tax pamphlet. Furthermore, the record shows that GPO solicited bids for these contracts on the basis of the complete job-i.e., the total number of tax booklets to be produced plus ancillary work-not "per page"; indeed, even quotes for additional quantities were to be submitted "per 1,000" copies of the pamphlet. R4 File, Tab A, pp. 22-23, and Tab G, pp. 20-21. The Respondent assumes that because the Government required less pages, ergo, less effort was required by the Contractor. To the contrary, in the Board's view, the reduction in the amount of paper required to perform the contract is offset by the increased activity on the part of the Contractor which was necessary to conform existing paper stocks to the contract changes, and which the Respondent itself found reasonable and necessary. Cf., Celesco Industries, supra, 79-1 BCA � 13,604. 67 It should be noted that notwithstanding its holding in Keco Industries, the ASBCA expressly found that contractor, in fact, bid the work expecting a profit, not a loss. See, Keco Industries, Inc., supra, 72-2 BCA � 9,576, at 44,733 ("Even if appellant based its bid on the original contract on performance without a profit (and the Board finds appellant did not) it would not follow that work required by changes that increased appellant's costs should therefore be performed without a profit." [Emphasis added.]). Hence, no matter how sound the rule is in other circumstances, in the actual context of Keco Industries itself, the principle is mere dicta. Furthermore, it should also be observed that the changes in Keco Industries, were not deductive, as here, but rather the extra work and costs were caused by the fact that the Government's original drawings specifications were defective. 68 In Condor Reliability Services, Inc., the ASBCA stated: "The rule applicable to the price is . . . 'the difference between the reasonable cost of performing without the change or deletion and the reasonable cost of performing with the change or deletion.' [Citation omitted.] The result should not change the contractor's loss or profit position before the change occurred. In other words, there should be no repricing of the contract as a whole. [Emphasis added.]" Condor Reliability Services, Inc., supra, 90-3 BCA � 23,254, at 116,675-76. 69 The contractor has the burden of proof of establishing that it performed additional work beyond its initial contract obligation for which it is entitled to extra compensation. Jan-Beck Associates, supra, 87-2 BCA � 19,831, at 100,322 (citing, Schoenfeld Associates, supra, 87-2 BCA � 19,648). Such proof is clear from the record in this case. 70 The Appellant initially quoted a printing and binding "Added Rate" for Jacket No. 245-004 of $128.20 per 1,000 copies (R4 File, Tab E), which was subsequently changed to $129.20 per 1,000 (R4 File, Tab U). For Jacket No. 245-006, at bid the "Added Rate" for printing and binding was $213.95 per 1,000 copies (R4 File, Tab J). When the Government ordered page reductions to each tax booklet, the Appellant lowered its "Added Rate" to $126.86 per 1,000 copies, and $209.34 per 1,000 copies, respectively (R4 File, Tabs U and V). 71 The Appellant's refund includes a return of the credits which it had already given the Respondent for the paper savings achieved when the Government reduced the number of pages in the tax booklets. See, OIG Audit Report, pp. 12 (Appendix V, fn. 3), 14 (Appendix VI, fn. 2) (R4 File, Tab PP).