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ASBCA Confirms the “Goldilocks Principle” in Government Contract Appeals

A letter from the contracting officer unequivocally directing the contractor to exclude specific costs from its cost submissions as unallowable may not be an appealable final decision. Contractors should seek...more

Federal Circuit Revives Key Case Addressing Contractor’s Ability to Include Offsets in Measurement of CAS Change Impacts

Case remanded to Court of Federal Claims to clarify whether CAS Impact Calculation involving multiple unilateral changes may include contractor “offsets” Federal Circuit revives the question of whether the FAR 33.606...more

DoD Memorandum Discusses Contractor Reimbursement for COVID-19 Expenses

Newly published DoD Guidance for Contracting Officer Assessment of Other COVID-19 Related Impacts and Costs provides answers on how contractors can seek reimbursement for cost and delay impacts associated with their response...more

Up-to-the-Moment Status of COVID-19 Guidance on Contract Performance Impacts

As government contractors scramble to tackle contract performance changes and disruptions proximately caused by COVID-19, guidance suggests that federal agencies may act equitably. Federal procurement agencies seem inclined...more

Federal Circuit Decision Addressing Salary Costs Associated with Lobbying Activities Has Broad Implications

On Oct. 18, 2019, the Court of Appeals for the Federal Circuit issued its decision in Raytheon Co. v. Sec. of Def., holding that salary costs associated with lobbying activities are expressly unallowable, and therefore...more

Unique Facts Entitle Contractor to Recover Under Mutual Mistake Theory

Latent errors in a data set provided by the Government led the ASBCA to hold the Government responsible for contractor-incurred costs. To obtain relief pursuant to the mutual mistake of fact theory, contractors must...more

Section 809 Panel Recommendations: Overhaul Audit Practices and Increase Reliance on Private-Sector Accounting Rules

This third installment of Pillsbury’s Section 809 alerts focuses on recommendations to modernize and streamline the Department of Defense’s (DoD’s) appropriations, auditing and accounting practices. The Section 809 Panel...more

Changes to Audit and Truth in Negotiations Act in FY 2018 NDAA

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

Warning Shot Fired (Finally) at Improper DCAA Cost Disallowance Basis

For a number of years, contractors have been required to expend substantial sums challenging baseless legal theories initiated by the Defense Contract Audit Agency (DCAA) and rubber-stamped by the Defense Contract Management...more

Proposed Rule For Independent Research & Development (“IR&D”) Costs Raises Concerns

On November 4, 2016, the Department of Defense (“DOD”) issued a proposed rule that would amend the Defense Federal Acquisition Regulation Supplement (“DFARS”) to require DOD Contracting Officers to adjust offerors’ proposed...more

GSA Issues Notice Concerning Trade Agreements Act and “Made in America” Compliance

On May 5, 2016—without advance warning—thousands of U.S. General Services Administration (GSA) Multiple Award Schedule (MAS) contract holders received a notice requiring them to verify—within one week—the country of origin...more

An Evolving Landscape: Timeliness of government disallowance of expenses contained in incurred cost proposals may depend on...

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

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