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Customary Commercial Practice Deserves Respect

Client Alert | less than 1 min read | 10.03.12

In Verizon Wireless (Sept. 17, 2012), GAO sustained a solicitation protest in a FAR Subpart 8.4 procurement for a blanket purchase agreement for wireless telecommunications devices and services off the Federal Supply Schedule when the agency had selected contract terms and conditions that were inconsistent with customary commercial practice in the industry. GAO concluded that the agency had failed to conduct the necessary market research to realize that the disputed terms were irregular and, thus, had failed to prepare the mandatory, documented determination of why it was necessary to deviate from normal commercial practice.


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  The CAS Board also rescinded CAS 404 (Capitalization of tangible assets) and CAS 409 (Depreciation of tangible capital assets) but retained certain requirements of CAS 404 and 409, which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