Kellogg Brown & Root Services, Inc.

Material Facts

• The Army Sustainment Center awarded Contract 0007 to KBRS as a cost plus award fee, indefinite delivery, indefinite quantity contract implementing LOGCAP.
• The contract included FAR 52.216-7, ALLOWABLE COST AND PAYMENT, and special provisions H-13, H-16, and H-21.
• The contract required operation of military dining facilities at locations in Iraq and Kuwait.
• ESS operated the dining facilities and later performed under 11 subcontracts awarded by KBRS.
• The 11 ESS subcontracts used firm-fixed unit prices that included an amount for security.
• ESS used private security for expatriate movements, third-country-national movements, and movement of equipment and supplies.
• CPA Order Number 3 (Revised) (Amended) addressed private security firms' possession and use of firearms and military weapons.
• CPA Memorandum Number 17 established registration requirements for private security companies operating in Iraq.
• The Defense Contract Audit Agency issued a notice suspending and disapproving the questioned ESS subcontract costs.
• KBRS submitted a certified claim for non-payment of the suspended costs, and no contracting officer's decision was issued.

Parties

Appellant

Kellogg Brown & Root Services, Inc.

Respondent Agency

Army

Contracting Agency

Army Sustainment Center (ASC)

Contract Number

DAAA09-02-D-0007