Federal Circuit Clarifies ‘Accrual’ of Claims under Contract Disputes Act
Timeliness is critical when submitting claims to the government, or any contracting party, for that matter — public or private, writes for Bass, Berry & Sims PLC. But, as a ruling in Kellogg Brown & Root Services, Inc. v. Murphy demonstrates, the law does not compel contractors to bring claims prematurely. The key is recognizing when the claim has ripened and the clock has begun to tick.
Dobbs writes that Kellogg Brown & Root Services filed a claim with the Army to recover costs associated with a subcontractor’s work on a dining facility in Iraq. The Army denied the claim and KBR appealed to the Armed Services Board of Contract Appeals. On the Army’s motion, the Board dismissed the claim, finding the six-year statute of limitations under the Contracts Dispute Act (CDA) had expired.
