Government Improperly Disallowed Costs that Were Never Accrued or Charged; ASBCA No. 60190, Appeal of Northrop Grumman Corporation

Appeal of the government’s final decision disallowing costs related to the contractor’s post-retirement benefits plan is sustained, where the contractor used a methodology that was not compliant with the FAR, but did not accrue, incur, or charge the government for these costs, and therefore the contractor will never claim and the government will never  pay the disallowed costs.