5753058161

Kellogg Brown & Root Services, Inc.

August 6, 2013Judge Delman
DismissedEquitable Adjustment (REA)Cost Allowability / Allocability (FAR 31)DCMA Involved

Kellogg Brown & Root Services, Inc. sought reconsideration of the Board's dismissal without prejudice of its appeals pending resolution of a False Claims Act suit. The Board found no legal error and affirmed the dismissal for a maximum period of 36 months from the original decision.

Material Facts

  • KBR's certified claim was the same claim alleged to be false or fraudulent in the False Claims Act suit.
  • The government alleged that the sum KBR sought to recover based on its payment of First Kuwaiti's subcontractor REAs was knowingly false or fraudulent.
  • The transactional facts in the Board and court proceedings were virtually identical.
  • First Kuwaiti was a foreign subcontractor that was not a party before the Board.
  • First Kuwaiti was a party defendant in the False Claims Act action.
  • The Board had less ability than the court to require compliance with its orders by a foreign non-party.
  • The prior dismissal was subject to reinstatement within three years from the date of the original decision.
  • The parties recognized that additional time might be required in the False Claims Act action because First Kuwaiti was a foreign co-defendant.

Parties

Appellant
Kellogg Brown & Root Services, Inc.
Contract Number
DAAA09-02-D-0007
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