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Government's Notice That It Questioned Certain Costs and Would Take 'Appropriate Action' Is Not a Notice of 'Disallowance' as Required by the Contract: Contractor Granted Summary Judgment for Over $1 Million

CB&I Areva Mox Servs., LLC v. United States, 2018 U.S. Claims Lexis 1549 (November 9, 2018)

Author: Danielle J. Volpe

1/10/2019

Read the full post at Constructlaw

Government's Notice That It Questioned Certain Costs and Would Take 'Appropriate Action' Is Not a Notice of 'Disallowance' as Required by the Contract: Contractor Granted Summary Judgment for Over $1 Million

Nearly two decades ago, the Department of Energy, National Nuclear Security Administration (NNSA) awarded a contract for the design, construction and operation of a Facility at the Savannah River Nuclear Site (‘the Contract”) to Mox Services’ (Mox’s) predecessor in interest, Duke, Cogema, Stone & Webster, LLC. Mox has no employees and subcontracts out the entirety of its work under the Contract to subcontractors. CB&I Project Services Group (CPSG), Mox’s parent company, was the principal subcontractor. The Contract followed a “cost reimbursement” model whereby NNSA would pay Mox for certain allowable costs that Mox incurred in performing the Contract.

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