Boeing’s Challenge to Contract Accounting Rule Gets Tossed (1)

The Boeing Co. lost its challenge to the US government’s $1 million contract accounting claim because the US Court of Federal Claims concluded it lacks jurisdiction over challenges to the validity of regulations.

Boeing sued in December 2017 asserting that it shouldn’t have to pay $1 million stemming from the company’s accounting practice changes under a $66 million Navy contract to provide military aircraft and related services. The company argued the changes resulted in $1.5 million in savings for the government.

The company also said that when the government applied a Federal Acquisition Regulation provision to calculate the impact of ...