KEARFOTT GUIDANCE & NAVIGATION CORP. v. RUMSFELD

No. 02-1039.

320 F.3d 1369 (2003)

KEARFOTT GUIDANCE & NAVIGATION CORPORATION, Appellant, v. Donald H. RUMSFELD, Secretary of Defense, Appellee.

United States Court of Appeals, Federal Circuit.

February 25, 2003.


Attorney(s) appearing for the Case

Stephen D. Knight, Smith, Pachter, McWhorter & Allen, P.L.C., of Vienna, VA, argued for appellant. Of counsel on the brief was Samuel Paige, Paige & Paige, of Holliswood, Queens, NY.

Brian A. Mizoguchi, Trial Attorney, Commercial Litigation Branch, Civil Division, Department of Justice, of Washington, DC, argued for appellee. With him on the brief were Robert D. McCallum, Jr., Assistant Attorney General; David M. Cohen, Director; and Bryant G. Snee, Assistant Director. Of counsel on the brief were Thomas S. Tyler, Defense Contract Management Agency, of Bratenahl, OH; and Paul C. Mitchell, Office of Counsel DCAA, Department of Defense, of Ft. Belvoir, VA.

Gregory A. Smith, Piper Marbury Rudnick & Wolfe LLP, of Washington, DC, for amicus curiae DynCorp Information Systems, LLC. Of counsel on the brief was William J. Crowley.

Carter G. Phillips, Sidley Austin Brown & Wood LLP, of Washington, DC, for amicus curiae BAE Systems Information and Electronic Systems Integration, Inc. With him on the brief was Howard J. Stanislawski.

Before CLEVENGER, Circuit Judge, ARCHER, Senior Circuit Judge, and BRYSON, Circuit Judge.


BRYSON, Circuit Judge.

This appeal from the Armed Services Board of Contract Appeals involves a technical question as to the application of the 1990 version of a section of the Federal Acquisition Regulation ("FAR") to a government contract. The question is whether the contractor can base its claim for payment under the contract on a "stepped-up" valuation of its assets that was premised on use of the purchase method of accounting to value the assets of the corporation...

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