ASBCA 58966
Board: ASBCA
Agency: Defense Contract Management Agency
Appellant: Raytheon Company
Date: 2017-03-29
ARMED SERVICES BOARD OF CONTRACT APPEALS
Appeal of-- )
)
Raytheon Company ) ASBCA No. 57743
)
Under Contract No. N00024-04-C-6 l O1 )
APPEARANCES FOR THE APPELLANT: Karen L. Manos, Esq.
John W.F. Chesley, Esq.
Gibson, Dunn & Crutcher LLP
Washington, DC
APPEARANCES FOR THE GOVERNMENT: Arthur M. Taylor, Esq.
DCMA Deputy Chief Trial Attorney
Stephen R. Dooley, Esq.
Senior Trial Attorney
Alexander M. Healy, Esq.
Kathleen P. Malone, Esq.
Trial Attorneys
Defense Contract Management Agency
Boston, MA
OPINION BY ADMINISTRATIVE JUDGE SCOTT
ON THE PARTIES' CROSS-MOTIONS FOR RECONSIDERATION
The parties have cross-moved for reconsideration of parts of the Board's decision in
Raytheon Company, ASBCA No. 57743 et al., 17-1 BCA ,r 36,724 (Raytheon JI), 1 in
which, as pertinent to the instant motion, we denied Raytheon's appeal from the corporate
administrative contracting officer's (CACO's) assessment, and non-waiver, of penalties
and interest concerning lobbying costs and we sustained Raytheon's appeal from the
government's claim for what is sometimes, and herein, referred to as "level one" or
"single" penalties and interest under Federal Acquisition Regulation (FAR) 42.709-l(a)(l)
regarding aircraft fractional lease costs. Raytheon asks the Board to reconsider its ruling
that salary costs are part of expressly unallowable lobbying costs.
The government moves for reconsideration of the Board's decision that
Raytheon's aircraft fractional lease costs were not expressly unallowable and subject to
level one penalties and interest. The government also contends that what is sometimes,
1
In the decision the parties have asked the Board to reconsider, the Board denoted its
prior decision concerning the parties' motions to strike, Raytheon Company,
ASBCA No. 57743 et al., 16-1 BCA ,r 36,335, as "Raytheon 1"
and herein, referred to as "level two" or "double" penalties and interest, are appropriate
under FAR 42.709-l(a)(2) and other FAR and statutory provisions.
Each party alleges that the Board made clear errors of law but each denies the
I
errors alleged by the other party and asserts that the rulings challenged by the other party
were correct. 2
DISCUSSION
The Board applies the following standards in deciding a motion for reconsideration:
[W]e look to whether the movant has presented newly
discovered evidence, mistakes in findings of fact, or errors
of law. Kellogg Brown & Root Services, Inc., ASBCA
Nos. 57530, 58161, 16-1 BCA ,r 36,554 at 178,039. A
reconsideration motion is not an opportunity to reargue
issues previously raised and decided, or to advance
arguments that should have been presented in an earlier
proceeding. Precision Standard, Inc., ASBCA No. 59116,
15-1 BCA ,r36,155 at 176,445;AvantAssessment, LLC,
ASBCA No. 58867, 15-1 BCA ,r 36,137 at 176,384.
A party moving for reconsideration "must show a
compelling reason" why the Board should alter its
decision. Precision Standard, 15-1 BCA ,r 36,155
at 176,445.
Supreme Foodservice, GmbH, ASBCA No. 57884 et al., 17-1 BCA ,r 36,740 at 179,092.
Appellant's Motion for Reconsideration
I. The Parties' Contentions
Raytheon alleges that the Board's decision in Raytheon II, that salary costs
associated with unallowable lobbying are expr_essly unallowable, is irreconcilable with its
prior binding decision in Raytheon Co., ASBCA No.