Cost Related To Pensions from Closed Segements

CBS CORPORATION v. THE UNITED STATES, COFC No. 01-79 C, December 08, 2009.

 Segment Closing Date under Original CAS 413, NAVSEA contract. Judge Firestone grants summary judgment for plaintiff holding that segment closed when contractor stopped performing on government contract and stopped incurring any direct labor charges.

CBS CORPORATION v. THE UNITED STATES, COFC No. 01-79 C, December 08, 2009.

Court’s synopsis-Government’s Segment Closing Payment under the Allowable Cost and Payment Clause Where the Segment Closing Calculation Involves a Pension Deficit and a Portion of the Pension Deficit is Transferred from the Segment Seller to Segment Buyer; Allowable Cost and Payment Clause, FAR 52.216-7; Allowability Clause, FAR 31.201-2; Generally Accepted Accounting Principles (“GAAP”) Judge Firestone grants and denies in part both parties motions for summary  judgment noting that “the government is not liable to CBS for pension costs attributable to the pension deficit transferred to Northrop Grumman and CBS is not entitled to payment for that transferred deficit.”

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This entry was posted on Wednesday, December 16th, 2009 at 12:33 pm.