Welcome back to the Cost Corner, where we provide practical insight into the complex cost and pricing requirements that apply to Government contractors. The current topic is Federal Acquisition Regulation (FAR) Cost...more
Welcome back to the Cost Corner, where we provide practical insight into the complex cost and pricing requirements that apply to Government contractors. The March 2023 Cost Corner introduced the three principle categories of...more
WHAT: The United States Court of Appeals for the Federal Circuit has reversed Appeals of Raytheon Company, ASBCA Nos. 60061 et al, 21-1 BCA 37,796 (Feb. 1, 2021), which found Raytheon’s policies for tracking potentially...more
Monetary inflation effectively imposes a tax on just about everything we purchase. But for many years, inflation was so muted and gradual that the economy could manage it with minimal disruption or personal hardship....more
WHAT: The U.S. Department of Defense (DOD) is now signaling that it may be more willing to consider requests for equitable adjustment to firm-fixed-price contracts to compensate contractors for the effects of inflation....more
This is the second in a series of articles concerning the audits and investigations related to the contracts and grants awarded, and relief funds provided, in response to the COVID-19 pandemic. This article first discusses...more
On March 23, 2021, The House Small Business, Subcommittee on Contracting and Infrastructure held a remote hearing titled: “The Interaction Between the Paycheck Protection Program and Federal Acquisition Regulations: What It...more
This is the third in a series of posts regarding what we believe will be an onslaught of government investigations and audits of COVID relief funds and contracting. Previously, we identified likely categories of programs,...more
Each year, Congress presents us in Title VIII of the National Defense Authorization Act (NDAA) a potpourri of procurement reforms, changes, and additions. Some are effective immediately, while some are bound for rulemaking...more
The Contract Disputes Act (CDA) governs claims under FAR-based Government contracts. More than forty years after its enactment in 1978, we are apparently still not all in agreement as to when the time for filing a claim has...more
The Defense Contract Management Agency (DCMA) will institute a new Defective Pricing Pilot Team, according to a September 30, 2020, memo issued by Kim Herrington, Acting Principal Director of Defense Pricing and Contracting...more
A recent Federal Circuit decision has sustained an expansive judicial reading of what constitutes an expressly unallowable cost under FAR Part 31. This decision, reached in the context of lobbying expenses, provides the...more
Cough…cough…ahem…cough… Any contractor who has had the misfortune of dealing with the Defense Contract Audit Agency (DCAA) likely knows all too well that the agency is the Will Rogers of costs – it never met a cost it didn’t...more
In 2016, Congress instructed the Department of Defense (DoD) to review its procurement regulations by convening a panel of procurement professionals—from both the public and private sectors. This panel became known as the...more
For DoD acquisitions, the Conference Report for FY 2018 NDAA includes provisions that would streamline the DCAA Incurred Cost Audit process by involving private auditors and increase the TINA threshold. Conference Report...more
Submitting incurred cost submissions and closing out flexibly priced contracts in a timely manner is important for contractors, especially for those who are owed money due to indirect rate overruns, lagging invoices, or fee...more
In an April 2017 decision, the Armed Services Board of Contract Appeals (ASBCA) once again rejected the position of the Defense Contract Audit Agency (DCAA) that a cost or type of cost for which allowability depends on the...more
The passage of the Federal Acquisition Streamlining Act of 1994 and the Clinger-Cohen Act of 1996 saw the dawning of a new era in procurement policy, pursuant to which sweeping changes to the procurement laws and regulations...more
The last three years have seen a run of Contract Disputes Act (CDA) statute of limitations (SOL) cases involving contractor incurred cost proposals (ICP). The sledding has been more difficult for contractors after the Federal...more
More Small Business Subcontracting Plan Changes: SBA Proposes to Allow Subcontracting Plan Credit for Small Business Subcontractors at any Tier - Following recent proposed changes to the FAR’s small business...more
On August 26, 2015, the Department of Defense (“DOD”) issued a White Paper announcing that, beginning in FY 2017, all defense contractors will be required to notify DOD before undertaking any new Independent Research and...more
The Government Contracts Quarterly Update is published by BakerHostetler’s Government Contracts Practice team to inform our clients and friends of the latest developments in federal government contracting. ...more
In January, President Obama signed the National Defense Authorization Act for Fiscal Year 2013 (“NDAA”), which includes numerous new procurement policies directed at contractors and how they bid on and perform government...more