Government’s Failure to Challenge Costs in Past Does Not Preclude it From Disallowing Costs in Future; ASBCA No. 59577, Appeal of Technology Systems Inc.

Appeal of the contracting officer’s final decision to disallow certain expenses used to calculate indirect cost rates and some direct costs is denied in part, where the government’s failure to challenge certain costs in prior fiscal years does not preclude it from determining similar costs are unallowable in the future; and granted in part, where the appellant’s testimony and evidence provided sufficient support for some costs questioned by the government.