General Atomics Denies Defense Agency Quick Win in Cost Appeal

The Defense Contract Management Agency didn’t show that General Atomics Aeronautical Systems Inc. owes the government nearly $47 million for not complying with government contract cost accounting rules, the Armed Services Board of Contract Appeals said.

More information is needed to determine whether General Atomics violated Cost Accounting Standards by overcharging the government general and administrative costs related to the contractor’s real property lease agreements with Sorrento West Properties Inc. and San Miguel Valley Corp.—which are related parties under common control through parent entities, Administrative Judge Mark A. Melnick said in a decision released Tuesday.

The proper classification of rental ...