564445663157193

ARCTEC Services

April 15, 2011Judge Peacock
Sustained / Appellant PrevailedPayment / Progress Payments / FinancingContract InterpretationDCAA Involved

ARCTEC Services appealed for reimbursement of severance benefits paid to employees after contract expiration. The Board sustained one of ARCTEC's claims for a price adjustment under the contract's labor provisions.

Material Facts

  • ARCTEC was awarded a contract on 25 June 1999 to provide services to the Air Force.
  • The contract included provisions for severance benefits to unionized employees.
  • ARCTEC submitted three claims for reimbursement of severance costs, which were denied by the contracting officer.
  • The Board found that the severance payments were incurred pursuant to collective bargaining agreements and were allowable costs.

Parties

Appellant
ARCTEC Services
Respondent Agency
Air Force
Contract Number
F05604-99-C-9005
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