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Mandatory Suspension/Debarment Review For "Poorly Performing" Contractors

Client Alert | 1 min read | 03.23.10

In another sign that the government is increasing its focus on suspension and debarment, a February 2010 Department of Homeland Security IG report found that DHS has been reluctant to apply existing procedures against poorly performing contractors and recommended that DHS develop policies to determine whether to refer them to the suspension and debarment official when their contracts have been terminated for default or are being considered for default. DHS management concurred with the recommendation and will now require that contracting officers provide any determination of nonresponsibility to the S/D official when the determination is based in whole or part on the contractor's (1) lack of satisfactory performance record under DHS contracts; (2) lack of satisfactory record of integrity and business ethics; or (3) inability to qualify or ineligibility under applicable laws and regulations.

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  The CAS Board also rescinded CAS 404 (Capitalization of tangible assets) and CAS 409 (Depreciation of tangible capital assets) but retained certain requirements of CAS 404 and 409, which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