A recent decision of the Armed Services Board of Contract Appeals (“ASBCA”) seems to nail down the issue of exactly when a claim accrues to the government under the Contracts Disputes Act (“CDA”) arising from increased costs due to changes in a contractor’s accounting practices. In Raytheon Co. Space & Airborne Systems, ASBCA 57801 (“Raytheon”), the ASBCA announced its test for determining whether the government knew or should have known that it had a valid cause of action.
Imagine you are working on a federal government contract. The Government is happy with your work. You have received excellent performance ratings and high award fees. Your employees may have even received commendations for their efforts in supporting the Government’s mission. One day, your Government client calls you and asks you to perform substantial additional work. While this type of contract change may seem to be an excellent source of new revenue, it can also quickly turn into a bad situation in which your company does not get paid if you are not care