Contractor Avoids Penalties Where Business Costs Related to Economic and Market Planning Activities are Allowable; ASBCA Nos. 57743, Appeals of Raytheon Company

Appeal of penalties levied by the agency in relation to expressly unallowable costs is granted in part, where neither the FAR nor the agency’s agreement with the appellant expressly disallowed aircraft fractional lease costs, where costs incurred to design and build a database were related to allowable economic and market planning activities, and where the appellant provided sufficient evidence its consulting costs were justified; and denied in part, where lobbying costs are expressly unallowable, and the associated employee compensation costs are likewise unallowable.