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Federal Circuit Remands NAFI Contractor Back to ASBCA for Further Damages Findings

Client Alert | 1 min read | 06.04.14

In SUFI Network Servs., Inc., v. U.S. (May 29, 2014), the Federal Circuit vacated and remanded a $114 million award granted by the Court of Federal Claims to SUFI in its appeal of the ASBCA's damages determinations on several breach of contract claims brought in the aftermath of a telephone services contract with the Air Force's Non-Appropriated Fund Purchasing Office. The court found that the CFC correctly found error in several of the ASBCA's legal and factual findings concerning SUFI's damages, but it ruled that the CFC was not itself permitted to recalculate them under Wunderlich Act review and instructed the ASBCA to reconsider whether SUFI's calculations provided a fair and reasonable approximation of its losses (as the CFC had held) and recompute the lost profits owed.


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  The CAS Board also rescinded CAS 404 (Capitalization of tangible assets) and CAS 409 (Depreciation of tangible capital assets) but retained certain requirements of CAS 404 and 409, which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