The U.S. Civilian Board of Contract Appeals on May 12 dismissed an appeal filed by the management and operations contractor of the Energy Department’s Savannah River Site over a dispute on the allowability of certain contract costs.
In 2013, a DOE contracting officer “disallowed” $1.3 million paid to Savannah River Nuclear Solutions (SRNS) under the contract terms, which the contractor disputed as allowable. Early last year DOE filed a suit through the Justice Department under the False Claims Act, which was followed by SRNS’ claim requesting that the contracting officer rule on the allowability of the disputed costs.
Another contracting officer in March 2016 wrote a letter to SRNS in which the official denied having the authority to settle claims involving fraud. Savannah River Nuclear Solutions in April 2016 filed its appeal with the Civilian Board of Contract Appeals, followed by a DOE motion in June to dismiss the contractor’s appeal.
The Civilian Board in its latest decision granted the motion to dismiss due to lack of jurisdiction: “[A]s the contracting officer determined he did not have authority to issue a final decision, there is no failure by the contracting officer to issue a final decision, and therefore no deemed denial of the claim. Without a final decision or deemed denial, we lack jurisdiction in this appeal.”
“The decision on the appeal is disappointing but we will continue to defend our position on this matter,” SRNS spokeswoman Barbara Smoak said by email. The contractor did not offer additional details on the $1.3 million in question and its intentions for further legal action.
SRNS is a partnership of Fluor, Newport News Nuclear, and Honeywell, in the midst of a 10-year contract valued at roughly $9.8 billion. The contract, set to expire next July, involves environmental cleanup and national security missions at the site.
