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Chance to Change Pricing Generally Required After Corrective Action

Client Alert | 1 min read | 10.27.11

The GAO in Power Connector, Inc. (Aug. 15, 2011), reiterated that, when an agency changes a solicitation evaluation criteria in a material way as part of corrective action, it must allow offerors in the next round of proposals to alter their price – even when the change has no obvious relationship to pricing – because the offeror may have submitted a more competitive price had it known that its proposal would be less competitive in another evaluation area.  In response to agency concerns about the protestor having an unfair advantage in the recompetition as a result of learning of other offerors’ pricing during its debriefing, GAO instructed that the proper remedy was to level the playing field by disclosing all prices to all offerors, rather than to forbid price changes.

For further analysis, click here for related blog post by James Peyster.

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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  The CAS Board also rescinded CAS 404 (Capitalization of tangible assets) and CAS 409 (Depreciation of tangible capital assets) but retained certain requirements of CAS 404 and 409, which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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