Cellular Materials International, Inc.

Material Facts

• CMI submitted final indirect cost proposals for fiscal years 2010 – 2014.
• DCAA initially informed CMI that its proposals were low risk and would not be audited.
• CMI revised its proposals to add $425,000 in G&A costs for a consultant, Mr. Haydn Wadley.
• DCAA performed an audit and questioned all $425,000 in consultant costs due to lack of supporting documentation.
• The contracting officer issued a final decision establishing final indirect cost rates and asserting a demand for payment of $511,119.
• CMI produced documents showing payments of $219,583.23 to Mr. Wadley, which were agreed to be allowable costs.
• The remaining disputed amount was $205,416.57, related to unpaid promissory notes to Mr. Wadley.

Parties

Appellant

Cellular Materials International, Inc.

Contracting Agency

Defense Advanced Research Projects Agency

Contract Number

HR0011-10-C-0054