Parsons Global Servs., Inc. v. McHugh, No. 11-1201 (Fed. Cir. 2012)
Annotate this Case
In 2004, the Army awarded Parsons the prime contract for work in Iraq. The contract incorporated Federal Acquisition Regulations (FAR), for reimbursement of sub-contractor costs. Parsons entered into a subcontract with Odell for health care facilities and medical equipment. After the Army terminated task orders for convenience, Odell attempted to collect reimbursement above the amount determined by the Defense Contract Audit Agency as its provisional indirect cost. Settlement for termination of the prime contract did not address the issue. Following an audit, Parsons submitted Odell’s revised invoice to the termination contract officer, who stated that it would not settle directly with Odell under FAR 49.108-8 because it was not in the best interest of the government. Parsons submitted a sponsored Certified Claim under the Contract Disputes Act on behalf of Odell to the Procurement Contracting Officer, who denied the claim. The Armed Services Board of Contract Appeal held that the request was routine and, under 48 C.F.R. (FAR) 2.101, needed to be in dispute to constitute a claim over which it had jurisdiction. The Federal Circuit affirmed. Parsons made no argument that its request was in dispute. The record did not indicate that the PCO ever received a proper request for payment.
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.