CAS Offsets Permitted Among Different Contract Types
Apr.14.2006
In an important case of first impression, the Court of Federal Claims in Lockheed Martin Corp. v. United States (Mar. 29, 2006, http://www.uscfc.uscourts.gov/Opinions/Allegra/06/ALLEGRA.LockheedMartn.pdf) has held that the cost impact of a Cost Accounting Standard (CAS) noncompliance is the net of all increased costs and all decreased costs that result from the noncompliance on all CAS-covered contracts. The Court rejected the government's argument that decreased costs paid on fixed-price contracts could not be offset against increased costs paid on cost-reimbursement contracts, finding that it "is -- in a word -- wrong."
For more information, please contact the professional(s) listed below, or your regular Crowell & Moring contact.