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A Rose and a Thorn: Federal Circuit Permits Contractor to Add New Claim to Pending Complaint, but Enforces Notice Provision to Bar Recovery

Client Alert | 1 min read | 02.26.15

In K-Con Building Systems Inc. v. United States, the Federal Circuit held that a contractor could amend its COFC complaint to add new, denied claims related to the appeal if the new claims either requested different remedies (e.g., additional compensation, remission of funds, non-monetary relief) or asserted legal grounds for relief that were materially different from the claims under appeal. This holding may prove helpful to contractors at the COFC who identify additional bases for recovery/remedies after filing their complaint; however, the Court also denied recovery because the contractor's two-year delay before notifying the government of the alleged "changes" failed to provide the adequate notice required by the Changes Clause, distinguishing the facts in K-Con from those in prior cases where notice provisions were not strictly enforced.

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Client Alert | 1 min read | 07.08.26

CAS Board Publishes Final Rule Rescinding CAS 404, 408, 409, and 4117

As part of its ongoing effort to conform the Cost Accounting Standards (“CAS”) to generally accepted accounting principles (“GAAP”), the CAS Board published a final rule rescinding CAS 408 (Accounting for costs of compensated personal absence) and CAS 411 (Accounting for acquisition costs of material).  The CAS Board also rescinded CAS 404 (Capitalization of tangible assets) and CAS 409 (Depreciation of tangible capital assets) but retained certain requirements of CAS 404 and 409, which will be located in new paragraphs of CAS 405 (Accounting for unallowable costs).  Specifically, the CAS Board retained the requirements currently located at CAS 404-50(d)(1), CAS 409-50(e)(5), CAS 409-50(j)(1), and CAS 409-50(j)(4), which the CAS Board explained are necessary to protect the Government’s interests.  Otherwise, the CAS Board determined that the requirements of CAS 404, 408, 409, and 411 overlapped with GAAP such that GAAP “may be applied reasonably as a substitute for CAS to support contract cost and pricing.”...

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