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Recovering Unabsorbed Home Office Overhead Using the Eichleay Formula

By Timothy Sullivan on November 20, 2006
Posted in Contract Performance Issues

The Armed Services Board of Contract Appeals recently reiterated the requirements a contractor must meet in order to recover unabsorbed home office overhead using the Eichleay Formula.  In Kato Corporation, ASBCA No. 51462, the Board held that a contractor must establish three elements to successfully maintain a claim for recovery of its…

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