Raytheon Company

Material Facts

• The CACO assessed penalties and interest concerning salary costs associated with unallowable lobbying costs.
• The CACO assessed level one penalties concerning Raytheon's aircraft fractional lease costs under FAR 42.709-1(a)(1).
• Raytheon treated its lobbying salary costs as unallowable.
• The February 2005 Advance Agreement stated that Raytheon agreed not to charge a portion of its aircraft fractional lease costs to the government.
• The February 2005 Advance Agreement did not state that the aircraft fractional lease costs were unallowable under the FAR.
• The government did not assess penalties under FAR 42.709-1(a)(2).
• The government did not pursue level two penalties during the hearing.
• The parties cross-moved for reconsideration of portions of the Board's prior decision.

Parties

Appellant

Raytheon Company

Respondent Agency

Defense Contract Management Agency

Contract Number

N00024-04-C-6 l O1