May 31, 2013

Raytheon Defeats Government Claims Arising from Changes in Cost Accounting Practices as Untimely

Arnold & Porter Advisory

The Armed Services Board of Contract Appeals (ASBCA) published yet another decision dismissing government claims as untimely under the statute of limitations. Raytheon Company, Space & Airborne Systems, ASBCA No. 57801, et al. (Apr. 22, 2013). The ASBCA dismissed three government claims against Raytheon, amounting to over US$7.5 million. The claims arose from changes in Raytheon's cost accounting practices that the company implemented in 2004 and 2005. Raytheon notified the government of the changes in 2004 and, with the notifications, or soon thereafter, notified the government that certain of the changes would result in the government paying increased costs.

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