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Awards Reinstated After Faulty 'Corrective Action'

Client Alert | less than 1 min read | 04.11.14

In WHR Group, Inc. v. U.S. (Apr. 8, 2008), the Court of Federal Claims set aside an agency's "corrective action" terminating three blanket purchase agreements for employee relocation services because that action was not narrowly tailored to address the flaw in the underlying procurement. While the agency cited a laundry list of reasons for why it believed termination and reprocurement was necessary, Judge Block rejected nearly all of them and, as to the one issue that legitimately raised a concern about the prior evaluation, he concluded that a reevaluation would address the problem without a full resolicitation.

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Client Alert | 1 min read | 07.08.26

CAS Board Publishes Final Rule Rescinding CAS 404, 408, 409, and 4117

As part of its ongoing effort to conform the Cost Accounting Standards (“CAS”) to generally accepted accounting principles (“GAAP”), the CAS Board published a final rule rescinding CAS 408 (Accounting for costs of compensated personal absence) and CAS 411 (Accounting for acquisition costs of material).  The CAS Board also rescinded CAS 404 (Capitalization of tangible assets) and CAS 409 (Depreciation of tangible capital assets) but retained certain requirements of CAS 404 and 409, which will be located in new paragraphs of CAS 405 (Accounting for unallowable costs).  Specifically, the CAS Board retained the requirements currently located at CAS 404-50(d)(1), CAS 409-50(e)(5), CAS 409-50(j)(1), and CAS 409-50(j)(4), which the CAS Board explained are necessary to protect the Government’s interests.  Otherwise, the CAS Board determined that the requirements of CAS 404, 408, 409, and 411 overlapped with GAAP such that GAAP “may be applied reasonably as a substitute for CAS to support contract cost and pricing.”...

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