Substantiating Contract Claim Costs— Avoid "Accounting Gymnastics"

In February’s Forecaster, we highlighted the importance of understanding how to identify, quantify, substantiate and present government contract claims. Michael J. Askew, Claim Spotting: What You Don’t Know Will Hurt You!, The Federal Forecaster Vol. 1, No. 2, 2-3 (2005). This article further addresses quantifying and substantiating contract claim costs, and the importance of having an adequate accounting system, by examining the recent case of Benmol Corporation v. Department of Treasury, GSBCA No. 16374-TD, 2005 GSBCA LEXIS 31 (Feb. 15, 2005).

Initially, claims must be submitted in accordance with the requirements of the Contracts Disputes Act of 1978 ("CDA"). While there is no specific language required for a contractor’s submission to be considered a claim, the following requirements must be met: