State Department Must Face Contractor’s Afghanistan Taxes Claim

Sept. 23, 2021, 12:57 PM

International Development Solutions LLC may pursue its claim that the U.S. State Department must reimburse the security firm’s tax liabilities owed to the Afghanistan government incurred under protective services task orders, the Civilian Board of Contract Appeals said.

IDS claims it is owed nearly $37 million under cost-reimbursement provisions in task orders worth over $400 million. The State Department asserts IDS can’t recover the claimed amount because it didn’t include taxes in cost proposals.

The board, however, can’t determine if the contract said IDS wouldn’t be reimbursed for taxes it didn’t identify in advance, Board Judge Kyle Chadwick said in ...

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