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GAO Sides With COFC In Continued Battle Over Hubzone Set-Aside Priority

Client Alert | less than 1 min read | 05.21.10

GAO in DGR Assocs., Inc.(May 14, 2010), relied on "unambiguous" statutory language instead of a contrary 2009 opinion letter from DoJ's Office of Legal Counsel to hold that a procuring agency must first consider whether the conditions for a HUBZone set-aside exist before proceeding with an 8(a) set-aside. With this decision, GAO falls into line with (and cites with approval) the recent Court of Federal Claims decision, Mission Critical Solution v. U.S (Mar. 2, 2010), appeal docketed (Fed. Cir. Apr. 2, 2010), to the effect that set-asides to HUBZone contractors are mandatory whenever the criteria in 15 U.S.C. 657a are met.

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  The CAS Board also rescinded CAS 404 (Capitalization of tangible assets) and CAS 409 (Depreciation of tangible capital assets) but retained certain requirements of CAS 404 and 409, which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