Raytheon Company
Raytheon Company disputed the period during which daily compounded interest accrued on unpaid CAS noncompliance interest arising from segment-closing pension adjustments. On the government's motion for summary judgment, the Board held that interest continued through the government's receipt of the CAS noncompliance interest and denied the appeal.
Material Facts
- Raytheon sold Montek Aerospace on 1 December 1998 and Raytheon Engineers and Constructors on 7 July 2000.
- Each sale constituted a segment closing under CAS 413.50(c)(l2).
- Each segment had a pension fund surplus as of the date of the sale or segment closing.
- Raytheon paid the government's agreed adjustments on 21 September 2004 but refused to pay interest.
- The Federal Circuit held that Raytheon's failure to timely pay the adjustments violated CAS 413 and resulted in increased costs.
- Raytheon and the government executed a Deferred Payment Agreement in April 2005.
- The Deferred Payment Agreement provided for simple interest on the deferred interest debt and stated that it was an interim financial arrangement.
- The Deferred Payment Agreement stated that it released or waived no other existing government rights or remedies and made payment subject to Board adjustment or modification.
Parties
- Appellant
- Raytheon Company
- Respondent Agency
- Defense Contract Management Agency
- Contract Number
- DAAHOI-96-C-0114
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