Contractor’s Accounting of Building Lease Costs Not a Violation of CAS 404; ASBCA 60131, Appeal of Exelis Inc.

The government’s request for reconsideration of the partial dismissal of a government claim due to noncompliant accounting for the costs of a building lease is denied, where the contractor did not consider its leased assets a capital lease, and therefore any errors in reporting its lease costs were not a violation of Cost Accounting Standard 404.