Cost Allowability and Statute of Limitations

Raytheon Company
2007 - 2012

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.

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