Raytheon Company, Space & Airborne Systems

Material Facts

• Raytheon submitted Revision 15 to its Cost Accounting Standards Disclosure Statement, containing three cost accounting practice changes, and the revision became effective on 1 January 2008.
• Raytheon submitted a general dollar magnitude analysis more than two years after the changes became effective.
• The contract had an effective date of 30 December 2004 and incorporated FAR 52.230-2 and FAR 52.230-6.
• The Defense Contract Audit Agency issued a final report calculating the cost impact of the changes.
• The contracting officer's final decision sought recovery from the contract at issue and included compound interest.
• The contracting officer stated in an affidavit that she based her materiality determination solely upon increased costs to the government.
• The contracting officer did not explain why the other criteria in 48 C.F.R. § 9903.305 were inapplicable.
• Raytheon's contract base for each year from 2004 to 2007 was in excess of $3 billion.
• The accounting changes impacted hundreds if not thousands of contracts.
• The record did not identify the amount of the government's administrative costs or specify how those costs were calculated.

Parties

Appellant

Raytheon Company, Space & Airborne Systems

Respondent Agency

Defense Contract Management Agency

Contracting Agency

Defense Contract Management Agency

Contract Number

F04701-03-C-0008 et al.