Northrop Grumman Computing Sys., Inc. v. United States

In 2001, U.S. Immigrations and Customs Enforcement awarded Northrop a contract for lease and support of Oakley network monitoring software for one base year and three option years at about $900,000 per year. To obtain Oakley’s software, Northrop was required to pay $2,899,710, so Northrup assigned its payment rights to ESCgov for $3,296,093. ESCgov assigned its rights to Citizens, but the government was not notified. In 2005, ICE decided not to exercise the first option. Northrop sent the contracting officer a “Contract Disputes Act Claim for not Exercising Option,” citing the Contract Disputes Act, 41 U.S.C. 601. The letter did not mention the two assignments. The CO denied Northrop’s claim. The Court of Federal Claims dismissed, holding that Northrop had not supplied the CO “adequate notice” because it failed to reference potential application of the Anti-Assignment Act and Severin doctrine. While the matter was pending, Northrop filed a second claim, including documents on the financing arrangements. The CO determined that Northrop’s second claim was the same claim and declined to issue a final decision. The Claims Court again held that it lacked jurisdiction. The Federal Circuit consolidated the cases and reversed, finding that the first letter constituted a valid claim. View "Northrop Grumman Computing Sys., Inc. v. United States" on Justia Law