Contract settlement finalized between Byron ammunitions plant, government

bpurser@macon.comMay 8, 2013 

Finalizing the contract settlement between a Byron ammunitions plant and the government after a verbal agreement the previous day proved to be about more than simply crossing the t’s and dotting the i’s.

Attorneys for Pyrotechnic Specialities Inc. and the U.S. Army Contracting Command spent most of the day Wednesday negotiating the written agreement. However, the settlement amount remained capped at $4 million, said John Draughon of Macon, one of the attorneys representing PSI.

About $2 million of the settlement are monies already received by PSI in progress payments made by the Army, Draughon said. The Army had sought to recoup that amount had the dispute gone to trial, he said.

The remaining $2 million is the claim amount that will be reviewed by the Defense Contract Audit Agency, which will make the final determination on the settlement amount, Draughon said.

The settlement averted what could have been a long trial before an administrative law judge for the Armed Services Board of Contract Appeals. The board had agreed to have the case heard in a borrowed federal courtroom in Macon.

The trial was to determine whether PSI was entitled to expenses and losses from what it alleged was the improper termination of Army contracts for the manufacture of “trip” flares and “white star” flares.

PSI contended that it lost the contracts from fallout from an April 2008 federal indictment. Those charges were later dismissed for insufficient evidence. The indictment alleged PSI defrauded the government by relabeling and selling defective “flash bang” or “stun” grenades to the FBI.

PSI manufactures munitions for the government and law enforcement agencies.

To contact writer Becky Purser, call 256-9559.

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