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DoD Lightens Contractors' Burden on Voluntary Defective Pricing Disclosures

Client Alert | 1 min read | 05.07.18

On May 4, 2018, the Department of Defense (DoD) issued a final rule (83 FR 19645), effective immediately, amending the Defense Federal Acquisition Regulation Supplement (DFARS) to give DoD contracting officers (COs) more leeway in evaluating contractors’ post-award defective pricing disclosures. To promote voluntary disclosures and reduce paperwork burdens on defense contractors, DoD rejected a proposed requirement to always conduct an audit of a contractor’s voluntary disclosure of defective pricing. Although the proposed rule (80 FR 72699) required DoD COs to request, at a minimum, a limited-scope audit of the affected cost elements, the final rule requires only a discussion between the CO and the Defense Contract Audit Agency (DCAA) to determine whether a limited-scope audit, full-scope audit, or technical assistance is appropriate for the circumstances (i.e., nature or dollar amount of the disclosure). The CO’s discussion with DCAA must cover: (i) the completeness of the contractor’s voluntary disclosure, (ii) the accuracy of the contractor’s cost impact calculation, and (iii) the potential impact on the contractor’s other existing contracts or proposals.


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Client Alert | 6 min read | 07.10.25

Is there a Role Anymore for Supplemental Environmental Projects in Environmental Enforcement Settlements?

Supplemental Environmental Projects (SEPs) are voluntary, environmental or public health projects that parties subject to environmental enforcement proceedings can propose as part of an administrative, civil, or criminal settlement. SEPs are unique and used specifically in environmental enforcement cases in part because (1) many environmental law statutes do not require a showing of harm to prove a violation; thus, redressing harm, outside of equitable relief, is not usually statutorily required; and (2) pollution is a public harm that is hard to redress, both individually and collectively....