L-3 Communications Integrated Systems, L.P.

Material Facts

• L-3 performed flexibly-priced government contracts that included cost-reimbursement line items for travel.
• The contracts restricted reimbursement of first class and business class airfare.
• During fiscal year 2009, L-3 incurred airfare expenses and was reimbursed for its claimed costs.
• The contracts remained unsettled because L-3 and the government had not agreed on final indirect cost rates.
• DCAA issued an audit report concerning L-3's unsettled flexibly-priced contracts for fiscal year 2009, including claimed airfares.
• The audit applied a 79% decrement factor to L-3's claimed international airfares over $6,000.
• The delivery orders associated with one contract required first and business class airfares to be documented and justified.
• The final decisions asserted government claims for repayment of purportedly unallowable premium airfare and, in one decision, travel on non-U.S.-flag carriers.

Parties

Appellant

L-3 Communications Integrated Systems, L.P.

Respondent Agency

Defense Contract Management Agency

Contracting Agency

Defense Contract Management Agency

Contract Number

FA8620-06-G-4002