Double Take: The DoD OIG Recommends Attempting to Recoup $43 Million in Purportedly Expressly Unallowable Costs Not Previously Disallowed
Client Alert | 1 min read | 02.13.20
On January 14, 2020, the Department of Defense (DoD) Office of Inspector General (OIG) released a report examining whether Defense Contract Management Agency (DCMA) contracting officer (CO) rejections of recommendations by the Defense Contract Audit Agency (DCAA) to assess penalties on $43 million in unallowable costs identified in 18 DCAA audit reports complied with the Federal Acquisition Regulation (FAR), DoD Instructions, and agency policy. The OIG did not take issue with the fact of the COs’ disagreements, nor did it take a position on the merits of the COs’ determinations. But the OIG did conclude that the COs did not adequately document their reasons for rejecting DCAA’s penalty recommendations. Accordingly, the OIG recommended that DCMA reevaluate the COs’ decisions not to assess penalties on the $43 million, take actions to reclaim any expressly unallowable costs not previously disallowed, and collect from the contractors any penalties due to the Government. DCMA stated that it would review the audit reports and attempt to recoup costs and/or penalties and interest that DCMA COs previously decided not to pursue, as appropriate.
Insights
Client Alert | 5 min read | 05.13.25
Californian Autonomous Vehicles Get a Revised Regulatory Load if New DMV Law Passes
On April 25, 2025, the California DMV released a notice of proposed regulations focused on changes to the testing and deployment of light-duty and heavy-duty commercial autonomous vehicles. California previously released draft regulations and asked for public comment, the last round ending August 30, 2024.
Client Alert | 5 min read | 05.13.25
DOJ Reprioritizes Corporate Enforcement with Key Policy Revisions
Client Alert | 3 min read | 05.13.25
DOL Issues Revised Independent Contractor Misclassification Guidance
Client Alert | 3 min read | 05.13.25