Parsons Government Services, Inc.

Material Facts

• Parsons Government Services, Inc. and Parsons Constructors & Fabricators were wholly-owned subsidiaries of Parsons Corporation.
• Parsons Corporation constructed the Pasadena Tower Building in the 1970s.
• In 2011, Parsons Corporation sold the Pasadena Tower Building and other nearby buildings to a non-affiliated third party.
• Parsons Corporation, through another subsidiary, leased back the Pasadena Tower Building under a 15-year lease.
• Parsons’s FY2011 final indirect cost rate proposals included allocated lease costs for the building and the gain on its sale.
• Parsons continuously occupied space in the building and was obligated by the lease to remain there until June 30, 2026.
• Parsons did not submit a revised indirect cost rate proposal incorporating the additional costs asserted in its March 2018 letter.
• Parsons did not include a claim certification with its March 2018 letter.
• The CACO issued separate unilateral FY2011 rate determinations for Parsons Government Services, Inc. and Parsons Constructors & Fabricators.
• The unilateral rate determinations directed Parsons to submit adjustment vouchers if the determined rates differed from those used in interim billings.
• The unilateral rate determinations did not include the customary notice of appeal rights.
• Parsons received the unilateral rate determinations on September 13, 2018 and filed its Board appeal on July 1, 2019.

Parties

Appellant

Parsons Government Services, Inc.

Respondent Agency

Defense Contract Management Agency

Contract Number

W912DY-09-D-0062 et al.