[Claim for Reimbursement of Increased Contract Costs]

GAO reviewed a claim forwarded by the Agency for International Development (AID) from an awardee under a cost reimbursement contract for technical services. AID did not dispute the claim, but believed that it might be barred by a 6-year statute of limitations on claims against the United States. The contract provided that final payment to the contractor was contingent on the establishment of final overhead rates. Final overhead rates were negotiated 5 years after the end of the first performance period and almost 8 years after the end of the second. GAO held that, when a right to be either actionable or ripe for a claim is dependent on the occurrence of an event or contingency, the right does not accrue until the event or contingency occurs. GAO stated that the claim for increased overhead costs did not accrue until the final overhead rates were negotiated and that, since the claim was received by GAO within 6 years from the time it accrued, it was not barred by statutory limitation. Accordingly, the voucher may be submitted for payment if otherwise correct.