Kellogg Brown & Root Services, Inc.

Material Facts

• The Army awarded KBRSI Contract No. DAAA09-02-D-0007 for combat support and combat service support to military personnel in contingency operations worldwide.
• The LOGCAP III contract included Clause H-29, Tour of Duty/Hours of Work, concerning rotation of contractor employees and costs associated with employees deployed less than or more than 179 days.
• The LOGCAP IV contract contained an identical Tour of Duty/Hours of Work clause, numbered H-26.
• KBRSI interpreted Clause H-29 to distinguish voluntary rotation from employee departures for reasons not involving KBRSI's discretion.
• DCAA audited KBRSI's fiscal year 2004 incurred travel cost submission and issued a notice disapproving travel costs for employees deployed in theater less than 179 days.
• The Army had not disallowed costs invoiced and paid based on KBRSI's interpretation of Clause H-29 and had not adopted DCAA's position.
• DCAA was conducting additional audits concerning the same issue for other fiscal years.
• The contracting officer characterized KBRSI's position as a bad assumption and stated that the larger Form 1 issue remained unsettled.
• The LOGCAP III contract had not been closed out, and the government had not finalized KBRSI's incurred costs since 2003.
• A qui tam case under the False Claims Act concerned allegations involving billing for mobilization and demobilization costs for personnel deployed less than 179 days.

Parties

Appellant

Kellogg Brown & Root Services, Inc.

Respondent Agency

Army

Contracting Agency

Army

Contract Number

DAAA09-02-D-0007