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Agencies May Not Rely On Flawed DCAA Audits

Client Alert | less than 1 min read | 02.04.10

In McKissak+Delcan JV II (Jan. 13, 2010), GAO for what may be the first time rejected a DCAA determination that the offeror’s accounting system was inadequate and sustained the protest because the agency had improperly relied on DCAA’s determination in rejecting the offeror’s proposal. Adequacy of business systems is an element of an agency’s responsibility determination when evaluating proposals, and bid protests are likely the only viable forum for contractors to contest findings of system inadequacies.

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Client Alert | 2 min read | 09.08.26

IRS Takes Aim: Proposed Rule Threatens Tax-Exempt Status of Private Schools

On September 4, 2026, the IRS published a notice of proposed rulemaking (NPRM) titled “Racial Nondiscrimination in Private Schools” (REG-119986-25). The proposed rule would extend the prohibition against racial discrimination in private schools to policies and practices that are intended to serve “remedial or diversity-related objectives,” such as those commonly associated with diversity, equity, and inclusion (DEI) initiatives. Under the proposed rule, any private primary or secondary school, college, professional or trade school, or university, would lose its tax-exempt status if it adopts, maintains, or enforces any policy or practice that considers race, color, or national or ethnic origin in the administration of any admissions policy, scholarship or loan program, athletic program, or other school-administered program. Comments are due November 3, 2026, and, if finalized, the proposed rule would go into effect on May 31, 2027. ...