Raytheon Company

Material Facts

• Congress expressed a procurement policy that costs for travel by commercial aircraft exceeding the amount of the standard commercial fare are not allowable.
• FAR 31.205-46(b) provided, before its 2010 amendment, that airfare costs exceeding the lowest customary standard, coach, or equivalent airfare offered were unallowable unless specified conditions were documented and justified.
• The contract was awarded to Raytheon on 21 May 2003 and incorporated FAR 52.216-7 and the allowability provisions of FAR Part 31.2 in effect on the contract date.
• Raytheon incurred airfare costs in 2005, including coach fares, premium airfares, and costs associated with certain multi-leg flights.
• DCAA issued an audit report on 24 August 2009 addressing Raytheon's incurred airfare costs for 2005.
• The contracting officer divided the costs determined to be unallowable into four categories, including unused negotiated corporate discounts and unjustified premium airfares.
• Raytheon requested summary judgment on four issues concerning the airfare baseline, application of discounts, DCMA's alleged reliance on a misstatement of travel policy, and allocability to Department of Defense contracts.
• The government did not oppose Raytheon's motion with respect to Issue 4.

Parties

Appellant

Raytheon Company

Respondent Agency

Defense Contract Management Agency

Contract Number

F08635-03-C-0002