Kellogg Brown & Root Services, Inc.

Material Facts

• Contract 0007 was a cost-plus-award-fee, indefinite-quantity, indefinite-delivery contract supporting LOGCAP III operations.
• The contract and task orders required the government to provide contractor force protection commensurate with the threat and with protection provided to specified government personnel.
• Contractor and subcontractor convoys experienced attacks, deaths, injuries, missing personnel, destroyed trucks, and continuing shortages or unavailability of military escorts.
• KBRS and its subcontractors used private security companies to move personnel, equipment, food, and money when government force protection was unavailable or insufficient.
• Government personnel and organizations had notice of subcontractor use of private security companies during the relevant period.
• The contract included Special Provisions H-13, H-16, and H-21, and later included the DFARS 252.225-7040 clause through Modification No. P00012.
• The CENTCOM policy/general order dated 23 December 2005 required case-by-case authorization for private security company use but was not incorporated into Contract 0007, and KBRS did not receive notice of it until 28 December 2006.
• DCAA issued reports and forms disapproving or suspending private security costs charged to Contract 0007.
• The contracting officer's 30 January 2013 final decision found $55,620,591.55 of suspended or disallowed costs unallowable and asserted a government claim after deductions for prior withholdings.
• The government knew or should have known of the facts supporting its private security cost recovery claim no later than 10 June 2005.

Parties

Appellant

Kellogg Brown & Root Services, Inc.

Respondent Agency

the government

Contracting Agency

Rock Island

Contract Number

DAAA09-02-D-0007