Kellogg Brown & Root Services, Inc.

Material Facts

• LOGCAP III required KBR to perform support services for the government in Iraq through individual task orders.
• Task Order 59 was a cost-plus-fixed-fee order, and Change 5 required KBR to provide living accommodations at multiple Iraqi locations.
• KBR and First Kuwaiti executed a firm-fixed-price subcontract for the procurement and delivery of 2,252 trailers to Camp Anaconda, later adding 1,760 trailers for Camp Victory.
• The subcontract required equitable-adjustment proposals to include detailed cost breakdowns conforming to FAR Part 31 and required First Kuwaiti to maintain supporting books and records.
• Military convoy resources were limited, security threats disrupted convoy movement, and trailers accumulated at the Kuwait-Iraq border.
• KBR and First Kuwaiti extended the subcontract performance period through August 1, 2004 to address trailer backups.
• First Kuwaiti submitted delay and double-handling requests using rates, prices, and a modeled number of delay days rather than actual costs.
• KBR paid both settlements without obtaining adequate cost information from First Kuwaiti, except for information concerning the land lease.
• DCAA audited the settlements and ultimately disapproved $51,273,482, after which the government recovered what it had paid.
• The ACO's final decision recognized the land-lease cost with indirect costs and fee but otherwise denied KBR's reimbursement request.

Parties

Appellant

Kellogg Brown & Root Services, Inc.

Respondent Agency

Defense Contract Management Agency

Contract Number

DAAA09-02-D-0007