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CFC Rejects Yet Another Government Argument to Extend CDA Statute of Limitations

August 15, 2012

In yet another recent CDA statute of limitations decision, the Court of Federal Claims in Raytheon Company v. United States (July 26, 2012) denied the government's motion for reconsideration of its April 2012 decision holding that the CO's final decision was barred by the six-year SOL. In its motion, the government argued that it was entitled by FAR 31.201-2 to complete an audit before the SOL could begin to run, but the CFC rejected that argument, holding that "the statute of limitations begins to run when information that equates to knowledge of a potential claim becomes available to the Government" and that under this standard the government was "on notice" of a potential claim against the contractor based on information it obtained when it entered into an advance agreement with Raytheon in 1999 about the costs at issue.

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Stephen J. McBrady
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Phone: +1.202.624.2547