Pratt & Whitney Contract Must Go Back to Board in Jet Cost Fight

A contract appeals board must take another look at the extent to which Pratt & Whitney must pay back the US Department of Defense for certain costs charged under its jet engine parts contracts, the Federal Circuit ruled Friday.

The Armed Services Board of Contract Appeals erred in ruling that the parties had an enforceable agreement concerning the calculation of overhead costs, referred to as “drag” costs, Judge Timothy B. Dyk of the US Court of Appeals for the Federal Circuit said in an opinion reversing in part and remanding its decision.

Pratt & Whitney argued that even without a ...