Kellogg Brown & Root Services, Inc.

Material Facts

• The Department of the Army awarded KBR an indefinite-delivery, indefinite-quantity contract supporting the Logistics Civil Augmentation Program.
• Individual task orders under the contract were issued on either a firm-fixed-priced or cost-reimbursable basis.
• The contracting officer issued cost-plus-award-fee Task Order No. 0059 for logistics and life-support services supporting V Corps and Coalition forces during Operation Iraqi Freedom.
• Task Order No. 0059 included waste-management and trash-removal services at eight sites in Iraq.
• KBR obtained contracting officer consent to purchase 20 trash trucks for performance of the task order.
• KBR purchased trucks from Najd Company and accepted delivery of 20 trucks in Jordan.
• KBR's inspection unit recommended rejecting five trucks because of alleged quality, design, safety, and minimum-industry-standard deficiencies.
• KBR pursued litigation and arbitration against Najd concerning the trucks and later settled the dispute by accepting the delivered trucks and paying the remaining amount withheld.
• After the settlement, KBR distributed the remaining trucks to sites in Iraq where they were used for trash-removal services.
• DCAA questioned the total cost associated with the 20 trucks under FAR 31.201-3 and identified alleged failures in procurement evaluation, quality inspection, and vehicle maintenance.
• The ACO issued a final decision asserting a monetary claim for overpayments corresponding to 15 trucks deemed unallowable.
• KBR argued that the government's claim accrued no later than 17 March 2005 or 15 June 2006.

Parties

Appellant

Kellogg Brown & Root Services, Inc.

Respondent Agency

Department of the Army

Contracting Agency

Department of the Army

Contract Number

DAAA09-02-D-0007