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Crowell & Moring – In General Atomics Aeronautical Systems, Inc., ASBCA Nos. 61633, 61731, the Armed Services Board of Contract Appeals considered, but declined to answer, the existential question of whether intracompany lease payments are “costs.” The ASBCA denied the Government’s motion for summary judgment, finding that material facts about the contractor’s intracompany lease payments remained in dispute. Further, the ASBCA held that because the Government failed to respond to the contractor’s affirmative defense that the Government’s claim was barred by the statute of limitations, the Government was not entitled to summary judgment.
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