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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.

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Client Alert | 3 min read | 09.15.25

Senate Finance Committee Looking to Take White River to the Train Station, Confirms DOJ Investigation into Tribal Tax Credits

On August 19, 2025, the U.S. Senate Committee on Finance (“Senate Finance Committee”) sent Paul Atkins, Chairman, U.S. Securities and Exchange Commission (“SEC”) a letter calling on the SEC to investigate White River Energy Corp (“White River”). In the letter, the Senate Finance Committee confirmed a criminal investigation into White River related to the sale of so-called “tribal tax credits” that according to both Congress and the IRS, do not exist. The letter further states that White River allegedly earned millions of dollars selling these credits and has not been forthcoming with investors regarding the existence of the criminal investigation. According to the Senate Finance Committee, White River has failed to file financial disclosure documents with the SEC since March 15, 2024, missing six consecutive reporting periods. The letter instructs White River to disclose the existence of the DOJ criminal tax investigation, and calls on the SEC to take action if White River fails to do so....