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A Sewer By Any Other Name Would Smell As Foul

Client Alert | 1 min read | 03.24.05

Southwest Marine, Inc. (Feb. 23, 2005), concerned costs incurred by a contractor in defending a private action brought under the Clean Water Act in which the government did not intervene and in which a federal court found that the contractor had violated the act, imposed a penalty for that violation, and then remitted the penalty entirely in recognition of costs incurred by the contractor to correct the violation. The ASBCA acknowledged that there was no FAR provision that expressly made the costs of a private action unallowable, but noted that FAR 31.205-47 would make such costs unallowable if the action had been brought by the government and concluded that the costs incurred in this private action were sufficiently similar to costs incurred in an action brought by the government to make the costs of the private action unallowable as well.

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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  The CAS Board also rescinded CAS 404 (Capitalization of tangible assets) and CAS 409 (Depreciation of tangible capital assets) but retained certain requirements of CAS 404 and 409, which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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