KBR Seeks High Court Review In Iraq War Costs Fight

Law360, New York (July 3, 2014, 6:47 PM EDT) -- KBR Inc. has asked the U.S. Supreme Court to reverse a Federal Circuit decision that empowered the government to disallow many of KBR’s expenses under a food services contract during the Iraq War, saying that the ruling threatens to upset decades of precedent in cost-reimbursement contracting.

KBR sued the government in 2009 over $41 million in unpaid charges for building and operating dining facilities for U.S. troops in Iraq. The Federal Circuit decided in September that the government could disallow a large portion of KBR's claimed costs based on an auditor's later decision that the project was unreasonably expensive, saying that...

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