Leidos, Inc., f/k/a Science Applications International Corporation

Material Facts

• The CACO alleged that Leidos failed to comply with CAS 403 by allocating Greek contract legal expenses through a corporate home office indirect cost pool rather than directly to Company 6.
• Leidos stated that the allocation affected fiscal years 2006 through 2010, and the CACO later concluded that fiscal years 2011 and 2012 were also affected.
• After revisions to Leidos's submissions, the CACO determined that there were no cost impacts for fiscal years 2006 and 2008 and only an estimated cost impact for fiscal year 2009.
• Leidos submitted a general dollar magnitude proposal describing the cost impact of the alleged CAS noncompliance on its CAS-covered contracts.
• Leidos conceded that the Greek contract costs should have been allocated to Company 6 and agreed with the government regarding the increased costs paid on flexibly-priced contracts.
• Leidos disputed that the misallocation affected CAS-covered fixed-price contracts because the Greek contract costs were not included in its forward pricing rates.
• The final decision identified Contract No. W56HZV-05-C-0724 as a representative contract, but that contract had not been awarded to Leidos.
• The government identified Contract No. W9113M-08-D-0004 as a contract between the government and Leidos and requested its substitution as the representative contract.

Parties

Appellant

Leidos, Inc., f/k/a Science Applications International Corporation

Respondent Agency

Defense Contract Management Agency

Contract Number

W56HZV-05-C-0724