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Gates v. Raytheon Co.

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Published opinion

Before MAYER, LOURIE, and GAJARSA, Circuit Judges.

The issue before the court is whether Raytheon Co. was required to pay interest to the Government for a potential violation of Cost Accounting Standard 413 (“CAS 413″), 48 C.F.R. § 9904.413. The Government appeals from a decision of the Armed Services Board of Contract Appeals (“Board”), which held on summary judgment that Raytheon’s potential violation of CAS 413 had not caused the Government to pay increased costs and therefore did not require Raytheon to pay interest on certain money it owed the Government. Because Raytheon’s failure to pay the Government in the accounting period required by CAS 413 necessarily resulted in increased costs to the Government, we reverse and remand.

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