Allison Transmission, Inc.

July 17, 2014Judge Delman

Denied / Government PrevailedContract InterpretationDCAA InvolvedDCMA InvolvedCAS at Issue

Allison Transmission, Inc. appealed a decision regarding the government's entitlement to compound interest on increased costs due to a voluntary cost accounting change. The Board ruled against the appellant, affirming the government's claim for interest.

Material Facts

Contract No. DAAE07-99-C-N031 was awarded to Allison Transmission, Inc. on 12 July 1999.
Allison submitted a notification of a change to its cost accounting practices effective 1 January 2008.
The change eliminated Allison's Engineering Cost Center Group 4C and reallocated its functions.
Allison determined that the government paid increased costs of $599,019.79 due to the change.
The Defense Contract Audit Agency (DCAA) later concluded that the total increased costs were $155,115.00.
The contracting officer issued a final decision asserting a government claim of $199,101.00, including interest.
Allison agreed to pay the principal amount of $165,424 but contested the government's claim for interest.

Parties

Appellant: Allison Transmission, Inc.
Respondent Agency: Defense Contract Management Agency
Contracting Agency: U.S. Army Tank Automotive Command
Contract Number: DAAE07-99-C-N031

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