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DCAA's Use of a Statistically Invalid Analysis for Testing Compensation Reasonableness

Client Alert | less than 1 min read | 02.03.12

The ASBCA in J.F. Taylor, Inc. (Jan. 18, 2012) rejected DCAA’s disallowance of executive compensation, based primarily on the credibility of differing expert opinions. The board concluded that the standard DCAA analysis relying on a “rule of reason” that permits compensation within 10% of the 50th percentile of an unweighted average of multiple surveys with different sample sizes is statistically invalid, at least in part because the contractor’s expert was credible and the government’s, who had included in his resume what was arguably a mail order PhD from a South African “university,” was not.

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Client Alert | 4 min read | 03.17.26

New Jersey Proposes Sweeping Ban on Data-Driven Pricing

The New Jersey Legislature is considering two bills, that if enacted, would prohibit business entities from using either consumers' personal data or “personalized algorithmic pricing” to set prices for merchandise or services, including groceries. If enacted, the new laws would have broad implications for companies across industries that rely on algorithmic or data-informed pricing strategies. In her recent State Budget Address, New Jersey Governor Mikie Sherrill pledged to sign the proposals into law if they reach her desk....