Beechcraft Defense Company, LLC; Textron Aviation Inc.; and Textron Aviation Defense, LLC

Material Facts

• DCAA issued three June 2011 audit reports alleging Beechcraft's noncompliance with several CAS provisions.
• The alleged noncompliances concerned the classification and allocation of training costs, home-office expenses, restructuring costs, independent research and development material costs, and severance costs.
• DCAA discovered the CAS noncompliances while preparing or conducting an audit of Beechcraft's January 28, 2011 forward pricing rate proposal for calendar years 2011 through 2015.
• The 2011 forward pricing rate proposal audit used Beechcraft's historical incurred-cost data as reflected in its accounting system.
• DCMA's 2011 final determinations stated that the condition causing each noncompliance had been corrected and did not request a general dollar magnitude proposal or detailed cost-impact proposal.
• DCMA later requested general dollar magnitude proposals and DCAA prepared further audits and remedy estimates concerning the alleged CAS noncompliances.
• Beechcraft and DCMA entered tolling agreements that excluded specified periods when determining whether the government's claims were time-barred.
• Each tolling agreement stated that it did not constitute an admission or acknowledgment concerning the applicability of a statute of limitations or similar timeliness defense.
• The 2017 remedy estimates referred to an audit package and unaudited data, but those materials were not included in the record before the Board.
• DCMA issued contracting officer's final decisions asserting CAS-related cost impacts in May 2018.

Parties

Appellant

Beechcraft Defense Company, LLC; Textron Aviation Inc.; and Textron Aviation Defense, LLC

Respondent Agency

Defense Contract Management Agency

Contracting Agency

Defense Contract Management Agency

Contract Number

FA8617-06-D-6150 et al.