Left Hand Design Corporation

Material Facts

• LHDC submitted its Fiscal Years 2009 through 2015 final indirect cost rate proposals to the Administrative Contracting Officer on April 3, 2017.
• DCAA released an Independent Audit Report on LHDC’s Proposed Amounts on Unsettled Flexibly Priced Contracts for FYs 2009 through 2015 on August 8, 2018.
• The Audit Report questioned several costs as unallowable and subject to penalty for FYs 2009 through 2015.
• The ACO issued penalty waivers for FYs 2009, 2012, and 2015 based on the amount of unallowable costs being under $10,000.
• The ACO determined that costs in the amount of $177,343 were unallowable for FY 2011, with a penalty of $59,977.
• For FY 2013, the ACO determined costs in the amount of $236,241 were expressly unallowable, with a penalty of $12,426.

Parties

Appellant

Left Hand Design Corporation

Respondent Agency

Defense Contract Management Agency

Contract Number

N00014-10-C-0306