ASBCA Decision a Mixed Bag on Cost Allowability Issues
Client Alert | 1 min read | 05.17.17
In Raytheon Co., ASBCA No. 57743, et al., the Board addressed penalties associated with various unallowable costs, finding that salaries of employees engaged in unallowable lobbying activities were “expressly unallowable” as “directly associated costs,” and subject to level 1 penalties, even though “directly associated costs” are, by definition, not expressly unallowable. The Board also found that costs that Raytheon had previously agreed to treat as unallowable, but erroneously included in incurred cost submissions, were not subject to level 1 penalties because they were not expressly unallowable (the Government apparently did not argue that such costs were subject to level 2 penalties). Finally, the Board held that testimony and other credible evidence can be used to demonstrate allowability of consultant costs in the absence of perfect documentation, and that a contractor must prove the CO’s failure to waive penalties for expressly unallowable costs is an arbitrary and capricious abuse of discretion.
Insights
Client Alert | 5 min read | 05.13.25
Californian Autonomous Vehicles Get a Revised Regulatory Load if New DMV Law Passes
On April 25, 2025, the California DMV released a notice of proposed regulations focused on changes to the testing and deployment of light-duty and heavy-duty commercial autonomous vehicles. California previously released draft regulations and asked for public comment, the last round ending August 30, 2024.
Client Alert | 5 min read | 05.13.25
DOJ Reprioritizes Corporate Enforcement with Key Policy Revisions
Client Alert | 3 min read | 05.13.25
DOL Issues Revised Independent Contractor Misclassification Guidance
Client Alert | 3 min read | 05.13.25