Lockheed Martin Services, Inc.

April 25, 2016Judge Clarke

Sustained / Appellant PrevailedContract InterpretationGovernment-Furnished PropertyQuantum / DamagesDCAA Involved

The Board denied the Defense Finance & Accounting Service's motion for reconsideration of a prior decision sustaining Lockheed Martin Services, Inc.'s appeals concerning payment for a license fee related to DFAS's use of software developed by LMSI. The Board concluded that any factual mischaracterization concerning the relationship between MIRORS and DRAS was harmless, that MIRORS was Government Furnished Property rather than Government-Furnished Equipment, and that the quantum challenge presented no new persuasive evidence.

Material Facts

LMSI performed the Military Retired and Annuitant Pay Operations contract for DFAS.
The contract included section J.4.6, titled "LIST OF PROPERTIES, FACILITIES, MATERIALS AND SERVICES OFFERED BY THE GOVERNMENT."
Section J.4.6 identified MIRORS and the DRAS Automated Information System as Government Furnished Property.
MIRORS worked in conjunction with DRAS.
The prior decision awarded LMSI payment for a license fee related to DFAS's use of LMSI-developed software.
DFAS relied on a DCAA audit in challenging the prior quantum determination.
The prior decision stated that LMSI incurred unrecovered costs to develop RAPID exceeding the unpaid difference between the contract cap and the amount paid by Modification No. P00089.

Parties

Appellant: Lockheed Martin Services, Inc.
Respondent Agency: Defense Finance & Accounting Service
Contract Number: MDA220-01-D-0002

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