Cost Allowability and Statute of Limitations

Our attorneys successfully represented Raytheon Company in a government claim regarding the allowability of more than US$25M of Voluntary Compliance Resolution costs incurred to preserve the tax status of a defined benefit pension plan.  In a seminal case, the Court of Federal Claims ruled that the Contract Disputes Act Statute of Limitations barred the Government’s claim.   The Court specifically held that a DCAA audit report does not postpone accrual of a government claim.