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Court Re-Affirms Rule On CDA Interest

November 14, 2006

In Information Int'l Assocs., Inc. (October 31, 2006) the Court of Federal Claims re-affirmed that interest on amounts found due based on a contractor's properly submitted CDA claim begins to run when the claim is submitted, even on costs the contractor does not incur until after claim submission. The Court observed that the CDA "sets a single, red-letter date for interest on all amounts found due by a court without regard to when the contractor incurred the costs" and noted that, when setting the date, "Congress was concerned with fully compensating contractors for additional costs incurred in continuing performance under a contract."

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J. Chris Haile
Partner – Washington, D.C.
Phone: +1.202.624.2898