L3 Technologies, Inc.

March 1, 2021Judge Prouty

DismissedCost Allowability / Allocability (FAR 31)Indirect Rates / Incurred CostCDA JurisdictionDCAA InvolvedDCMA Involved

L3 Technologies, Inc. appealed government claims challenging direct and indirect costs paid under several government contracts. The majority held that the government’s unequivocal withdrawal of the challenged Contracting Officer’s Final Decisions left no legally cognizable relief available, dismissed the appeals as moot, and denied L3’s summary-judgment motion as moot.

Material Facts

The appeals concerned government claims challenging direct and indirect costs paid to L3 for specified contract years.
Appeal No. 61811 concerned L3’s final indirect cost rate proposals for fiscal years 2011, 2012, 2013, and 2014.
The challenged audits used statistical sampling and extrapolation for some questioned costs.
Appeals Nos. 61813 and 61814 concerned premium-airfare costs incurred in stated contract years.
The government’s final decisions demanded repayment of the challenged costs.
The administrative contracting officer withdrew the final decisions unequivocally and stated that the Government did not intend to re-assert the costs at issue.
The appeals did not seek declaratory or injunctive relief concerning L3’s corporate travel policy or DCAA’s statistical-sampling methodology.
L3 had previously experienced disputes involving incurred-cost audits, final decisions, appeals, and withdrawal or settlement of claims.

Parties

Appellant: L3 Technologies, Inc.
Respondent Agency: Defense Contract Management Agency
Contract Number: FA8620-06-G-4002 et al.

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