In the present case, the contractor challenged DCAA's methodology for determining reasonable executive compensation based on four discrete arguments. The first argument contended that the Government's methodology was fatally flawed as a matter of basic statistical analysis. The Board found that the contractor's first argument was sufficient to prove its case so it did not need to address the contractor's other arguments.
The Government didn't help itself in this case either. In its decision, the Board wrote:
The government made no effort at the hearing or in its brief, to respond to the statistical arguments made by appellant and thus we are left with unrebutted evidence that the methodology used by DCAA was fatally flawed statistically and therefore unreasonable. Moreover, the government effort to support its own methodology was supplanted by an expert witness of questionable judgment. Consequently, we conclude that there are statistical flaws in the government methodology for determining reasonable compensation and that the computations performed by (the contractor's expert) to overcome those flaws are reasonable.