Technology Systems, Inc.

Material Facts

• Technology Systems, Inc. (TSI) is a small technology business that conducted research and development for the Navy.
• TSI had four cost-plus-fixed-fee (CPFF) contracts with the Navy during the relevant period.
• The DCMA disallowed certain expenses used to calculate TSI's indirect cost rates for FY 2007.
• The amount in dispute was $159,303, which the government sought to recoup after finding the costs unsupported.
• Prior DCAA audits had accepted TSI's indirect rates without question for the years 2002 to 2006.

Parties

Appellant

Technology Systems, Inc.

Respondent Agency

Defense Contract Management Agency

Contracting Agency

Navy

Contract Number

N00039-07-C-0006