Kellogg Brown & Root Services, Inc.

Material Facts

• USACE awarded KBR an indefinite delivery, indefinite quantity, cost-plus-award-fee contract for repair and continuity operations of Iraq oil infrastructure.
• The contract included FAR 52.233-1, Disputes, Alternate I, stating that the contract was subject to the CDA.
• The contract provided for task orders issued by designated individuals or activities, and the Schedule identified the Contracting Officer.
• USACE unilaterally transferred the contract and procuring contracting officer duties to the CPA-PMO effective 20 April 2004.
• The CPA dissolved and transferred authority to the Interim Iraqi Government on 28 June 2004.
• Successor entities, including the PCO and JCC-I/A, administered the former CPA contracts under delegated authority.
• KBR's claim concerned two task orders issued before the transfer and seven task orders issued after the transfer that were funded with DFI funds.
• The task orders and later modifications did not contain release language as described for the identified bilateral modifications.
• KBR rejected the unilateral modifications because it asserted that the government lacked inherent unilateral authority to effectuate them.
• KBR submitted a certified claim for nonpayment of invoices and prompt-payment interest penalties and later appealed from a deemed denial.

Parties

Appellant

Kellogg Brown & Root Services, Inc.

Respondent Agency

the government

Contracting Agency

U.S. Army Corps of Engineers (USACE)

Contract Number

W9126G-04-D-0001