Honeywell Loses Bid to Stop Government’s Costs Transfer Claim

The Defense Contract Management Agency can advance allegations that Honeywell International Inc. was overpaid $151 million in general and administrative expenses, a government contract appeals board said in an opinion released Wednesday.

A Honeywell unit in Minneapolis made ring laser gyros, which assist in aircraft navigation, that were incorporated in products for government contracts. The Minneapolis unit also made gyros that were transferred to another Honeywell unit in Coons Rapids, Minn., which incorporated them in products for commercial customers.

In April 2022, the agency’s contracting officer issued its claim asserting that the agency paid “more than its fair share” of ...