Kearfott Guidance & Navigation Corporation v. Donald H. Rumsfeld, Secretary of Defense

BRYSON, Circuit Judge.

This appeal from the Armed Services Board of Contract Appeals involves a technical question as to the application of the 1990 version of a section of the Federal Acquisition Regulation (“FAR”) to a government contract. The question is whether the contractor can base its claim for payment under the contract on a “stepped-up” valuation of its assets that was premised on use of the purchase method of accounting to value the assets of the corporation that emerged from a business combination. The Board held that the FAR provision in question prohibited the contractor from…