IR&D Definition Clarified
Client Alert | 1 min read | 03.19.10
In a decision that should resolve finally nearly 40 years of disagreement between contractors and the government about the definition of Independent Research and Development (IR&D), the Federal Circuit has held in ATK Thiokol Inc. v. U.S. (Mar. 19, 2010), that R&D effort must be "specifically required" by the terms of a contract in order to be excluded from the definition of allowable IR&D costs, endorsing the contractors' argument that effort that is "implicitly" required in order to perform the contract or "necessary" to perform but not explicitly required by the contract is allowable IR&D. In addition, and perhaps even more important, the decision acknowledges more generally in its analysis of the distinction between direct and indirect costs that "CAS 402 gives the contractor considerable freedom in the classification of particular costs, so long as the contractor maintains consistency in making that determination."
Insights
Client Alert | 4 min read | 02.20.26
SCOTUS Holds IEEPA Tariffs Unlawful
On February 20, 2026, the Supreme Court issued a pivotal ruling in Trump v. V.O.S. Selections, negating the President’s ability to impose tariffs under IEEPA. The case stemmed from President Trump’s invocation of IEEPA to levy tariffs on imports from Canada, Mexico, China, and other countries, citing national emergencies. Challengers argued—and the Court agreed—that IEEPA does not delegate tariff authority to the President. The power to tariff is vested in Congress by the Constitution and cannot be delegated to the President absent express authority from Congress.
Client Alert | 7 min read | 02.20.26
Section 5949 Proposed Rule Puts the FAR Council's Chips on the Table
Client Alert | 5 min read | 02.20.26
Trump Administration Pursues MFN Pricing for Prescription Drugs
Client Alert | 4 min read | 02.19.26
Proposed NY Legislation May Mean Potential Criminal Charges for Unlicensed Crypto Firms
