IAP Worldwide Services Inc. failed to show the government should pay it litigation costs arising out of an agreement with a former Kuwait-based partner to perform military support contracts worth hundreds of millions of dollars, the Armed Services Board of Contract Appeals said.
The US Defense Contract Management Agency demonstrated that the Federal Acquisition Regulation didn’t permit the reimbursement of $12 million because the costs involved a joint venture, Administrative Judge Laura Eyester said in an opinion made public Thursday.
The agreement constituted a joint venture, even though it didn’t have a loss-sharing provision, because under Kuwaiti law, the parties ...