61281

Engility, LLC

August 19, 2019Judge O'Sullivan
Partially SustainedCost Allowability / Allocability (FAR 31)Accord & Satisfaction / Release / Waiver

Engility, LLC appealed the government's disallowance of legal-proceeding and settlement costs arising from a lawsuit alleging abuse by Engility employees at Abu Ghraib. The Board denied leave to add a prior-material-breach defense as futile but granted leave to add a defense based on breach related to the alleged abuse of the Iraqi plaintiffs or the likely merits of their claims.

Material Facts

  • Engility is the successor in interest to Titan.
  • Titan held and performed contracts for translation services at Abu Ghraib prison, Iraq.
  • Iraqi plaintiffs sued Engility and/or Titan alleging that Engility employees participated in abuse of plaintiffs at Abu Ghraib.
  • One lawsuit was defended and subsequently settled.
  • The government disallowed the costs of defending and settling that lawsuit.
  • The government and Engility conducted discovery concerning material provided by CENTCOM in March 2018 relating to investigations of detainee abuse at Abu Ghraib.
  • The discovery material consisted of approximately one-third of a terabyte of unorganized and unlabeled information that mixed unclassified and classified material.
  • The underlying lawsuit involved allegations by 72 Iraqi plaintiffs.
  • Engility characterized the number of detainees who passed through Abu Ghraib during its translation performance as thousands.
  • The contracting officer's final decision stated that the alleged abuse was out-of-scope and constituted a breach of contract if proven.

Parties

Appellant
Engility, LLC
Contract Number
DASCO 1-99-D-OOO 1; W911 W4-04-D-0005
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