Kellogg Brown & Root Services, Inc.

July 25, 2016Judge Melnick

OtherCost Allowability / Allocability (FAR 31)DCMA Involved

The Board considered the government's motion to suspend or dismiss without prejudice two appeals involving the government's disallowance of KBR subcontract settlement costs. The Board denied the motion, concluding that another dismissal or an indefinite stay was not appropriate because further delay could prejudice KBR and the government acknowledged that proceeding on a complete record would not prejudice its False Claims Act action.

Material Facts

The appeals involve the government's disallowance of KBR subcontract settlement costs.
KBR submitted certified claims respecting those costs in 2010.
The United States filed a suit against KBR in the United States District Court for the Central District of Illinois.
The suit alleges that KBR's Requests for Equitable Adjustment and other claim-related costs were knowingly inflated and false.
The government stated at oral argument that proceeding before the Board would not compromise its False Claims Act case if it could obtain complete discovery and a full record.
More than the three-year period contemplated for resolution of the False Claims Act action and related matters had passed.

Parties

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

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