Parsons-UXB Joint Venture

Material Facts

• The joint venture consisted of Parsons Infrastructure and Technology Group Inc. and UXB International, Inc.
• The Navy awarded the joint venture a cost-plus-award-fee, indefinite-delivery, indefinite-quantity contract for unexploded-ordinance clearance and environmental restoration at Kaho'olawe Island Reserve, Hawaii.
• Hawaii imposed general excise taxes on gross revenues derived from business activity in Hawaii.
• The joint venture and its partners litigated the amount of their general excise tax liability in the Tax Appeal Court of the State of Hawaii.
• Following a partial settlement of the Hawaii tax dispute, the joint venture sought reimbursement from the Navy for increased general excise tax liability.
• The contracting officer rejected the invoice on the ground that it sought costs not currently in place on the contract.
• The 6 November 2004 letter from the joint venture's tax counsel was addressed to the joint venture and a Navy representative and described the Hawaii litigation, legal issues, legal analysis, and a cost-benefit analysis.
• The joint venture had not produced a privilege log identifying documents it claimed were protected.
• The joint venture stated that it would produce non-privileged documents in counsel's possession.
• The joint venture did not indicate that it intended to rely on the substance of the 2004 letter to support its claim before the Board.

Parties

Appellant

Parsons-UXB Joint Venture

Respondent Agency

Navy

Contracting Agency

Navy

Contract Number

N62742-95-D-1369