Exelis, Inc.
Exelis, Inc. appealed a contracting officer's final decision asserting a government claim for noncompliance with Cost Accounting Standard (CAS) 404 regarding lease accounting. The Board found that while the government could not establish a CAS violation, it could assert a claim under the FAR based on the same facts.
Material Facts
- Exelis leased the Summit Park Building in Fort Wayne, Indiana, in 1997.
- Exelis characterized the lease as an operating lease for financial accounting purposes.
- The DCAA questioned Exelis' lease costs, finding that the building lease was a capital lease.
- The DCMA determined that Exelis improperly treated the building lease as an operating lease.
- The final decision asserted a government claim for $3,821,534 against Exelis due to increased costs.
Parties
- Appellant
- Exelis, Inc.
- Contracting Agency
- Defense Contract Management Agency
- Contract Number
- N65236-07-C-5876
Full Legal Analysis
Create a free account to read the complete grounded legal brief for this decision, including the holding, every issue the Board decided, quantum, verified citations, and the case's citation graph.
Holding & Legal Reasoning
The Board's holding, background, and procedural posture for this decision.
Issues Presented
Every issue the Board decided, with its determination, reasoning, and supporting authority.
Quantum & Recovery
The claimed, awarded, and net dollar amounts at issue, itemized where the record supports it.
Verified Authorities & Citations
Every cited FAR, DFARS, CAS, and case-law authority, cross-checked against the source text.
Practitioner Takeaways
Practical guidance for contractors and counsel, distilled from the Board's ruling.
Similar Cases
Related decisions surfaced by semantic search across the full analyzed corpus.
Citation Graph
An interactive graph of this case's cited authorities, judge, agency, and related decisions.
Related Decisions
Same Judge
- Bahadir Construction Engineering Contracting & Trading Inc. Co. and Impreza Costruzioni Giuseppe Maltauro S.p. A Joint VentureNo. 64038, 64336, 64428September 9, 2026
- Elbit Systems of America-Night Vision, LLCNo. 64450August 11, 2026
- Globe Trailer Manufacturing, Inc.No. 60979-EAJAJuly 30, 2026
- Bahadir Construction Engineering Contracting & Trading Inc. Co. and Impreza Costruzioni Giuseppe Maltauro S.p.A Joint VentureNo. 64038, 64336, 64428July 16, 2026
- Filanc-Orion, JVNo. 63730, 6388, 63928, 63979July 1, 2026
- IVA'AL Solutions, LLCNo. 63430June 4, 2026
Same Year
- Sparton DeLeon Springs, LLCNo. 60416December 28, 2016
- Kellogg Brown & Root Services, Inc.No. 59873, 60885December 21, 2016
- Lockheed Martin Integrated Systems, Inc.No. 59508, 59509December 20, 2016
- CDM Constructors, Inc.No. 59524December 20, 2016
- Astro Systems, Inc.No. 60769, 60781December 20, 2016
- First Division Design, LLCNo. 60884-975December 15, 2016
Same Issue
- Raytheon Company and Raytheon Missile SystemsNo. 59435, 59436, 59437, 59438, 60056, 60057, 60058, 60059, 60060, 60061May 14, 2026
- Science Applications International CorporationNo. 63509May 27, 2025
- CACI International Inc.No. 63663May 6, 2025
- Northrop Grumman CorporationNo. 62165July 5, 2023
- Honeywell International, Inc.No. 63286June 7, 2023
- General Atomics Aeronautical Systems, Inc.No. 61633, 61731February 8, 2023