AECOM Government Services, Inc.
AECOM Government Services, Inc. sought reformation of an indefinite quantity contract to recover after-imposed FICA taxes resulting from the HEART Act. On the government's motion for summary judgment, the Board held that the asserted mistake concerned a future change in law rather than an existing fact and granted the motion, denying the appeal.
Material Facts
- The Joint Contracting Command—Iraq/Afghanistan awarded AECOM an indefinite quantity contract to establish a national logistics depot at Taji, Iraq.
- The contract's initial ordering period was from 1 January 2008 to 31 December 2009.
- AECOM GSS, Ltd., AECOM's wholly owned offshore subsidiary, performed the work.
- At contract award, offshore subsidiaries of United States corporations contracting with the United States government were not required to pay FICA taxes for United States citizens and residents working abroad.
- AECOM did not include FICA taxes in its labor rates for the contract.
- The HEART Act was signed into law approximately six months after award and required wholly owned subsidiaries of United States corporations contracting with the United States government to pay FICA taxes for United States citizens and residents working abroad.
- AECOM began paying FICA taxes relating to work under the contract on 1 August 2008.
- No contract clause protecting AECOM from a change to the tax status of offshore subsidiaries was included, and there was no evidence that such a clause was discussed during negotiations.
Parties
- Appellant
- AECOM Government Services, Inc.
- Contracting Agency
- Joint Contracting Command—Iraq/Afghanistan (JCC-IA)
- Contract Number
- W91GY0-08-D-0001
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