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 | 4 min read | 05.13.24
Harmonizing AI with EEO Requirements: OFCCP’s Blueprint for Federal Contractors
Now more than ever, federal contractors find themselves at the intersection of innovation and regulation, particularly in the realm of Artificial Intelligence (AI). AI is now incorporated into a broad range of business systems, including those with the potential to inform contractor employment decisions. For that reason, the Office of Federal Contract Compliance Programs (OFCCP) has issued new guidance entitled “Artificial Intelligence and Equal Employment Opportunity for Federal Contractors” (the “AI Guide”). OFCCP issued the AI Guide in accordance with President Biden’s Executive Order 14110 (regarding the “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence”), which we reported on here. The AI Guide provides answers to commonly asked questions about the use of AI in the Equal Employment Opportunity (EEO) context. The AI Guide also offers “Promising Practices,” which highlight a number of important considerations for federal contractors. Focusing on federal contractors’ obligations and attendant risks when utilizing AI to assist in employment-related decisions, the AI Guide also provides recommendations for ensuring compliance with EEO requirements while harnessing the efficiencies of AI.
Client Alert | 2 min read | 05.09.24
Client Alert | 12 min read | 05.09.24
Client Alert | 5 min read | 05.08.24
