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ASBCA Reconsiders CAS 418 Definition Of "Homogeneous Cost Pools"

Client Alert | 1 min read | 03.06.07

In a decision published on February 26, 2007, the Armed Services Board of Contract Appeals granted Appellant's motion for reconsideration of the widely criticized decision in AM General LLC, ASBCA Nos. 53610, 54741, 06-1 BCA ¶ 33,190, in which the Board had granted summary judgment to the Government, finding that an overhead cost pool that included some capital facilities used in production of the commercial HUMMER but was allocated to all HUMMER production did not comply with the homogeneity requirements of CAS 418 because those assets did not directly benefit production of the military version of the HUMMER. After considering the additional arguments of the contractor and of the National Defense Industrial Association as amicus curiae (represented by Crowell & Moring), the Board found that the evidence about the "homogeneity" of activities in the pool and the base at issue was insufficient to demonstrate a violation of CAS 418 and that the Government had failed even to address materiality ("a crucial test for determining homogeneity"), and for these reasons vacated its prior decision.

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Client Alert | 3 min read | 09.13.24

SEC Disbands its Climate and ESG Enforcement Task Force

The Securities and Exchange Commission (SEC) has reportedly recently dissolved its Climate and ESG Enforcement Task Force (the Task Force). The Task Force was part of SEC Chair Gary Gensler’s broader push to increase investors’ access to environmental, social, and governance (“ESG”) information about public companies and registered investment companies. The dissolution of the Climate and ESG Enforcement Task Force comes after three years marked by industry resistance and a mixed record in the courts. Prior to the Task Force’s dissolution, the agency removed ESG from its annual Examination Priorities Report, which provides areas of particular focus during SEC examinations. While the Task Force has been dissolved, the SEC is still pursuing a number of its proposed ESG and climate-related rules....