More Confusion On What Costs Are Allocable To Government Contracts
Client Alert | 1 min read | 01.16.09
In a puzzling decision about what appear to be independent research and development (IR&D) costs associated with creating a new software product, Teknowledge Corp. v. U.S. (Jan. 7, 2009), neither party seems to have cited the relevant allocation and allowability rules in Cost Accounting Standard 420, incorporated by reference in FAR 31.205-18, and the CFC's opinion does not mention them, instead sustaining disallowance of the costs on the ground that they did not "benefit" the government. Under the provisions of CAS 420, IR&D costs of a business unit are generally allocable to the contracts of that business unit, and it is not clear based on the facts as described in the opinion whether the costs at issue were incurred in a commercial business unit, a home office, or a government contracts business unit, so it is impossible to determine whether the costs would have been allocable to and allowable on the contracts of the Government business unit if CAS 420 had been appropriately applied.
Insights
Client Alert | 5 min read | 12.02.25
As we have reported previously, California has enacted a pair of climate-related reporting laws that apply to large entities doing business in California (SB 253 and SB 261, as modified by SB 219). This alert provides an update on only the most recent events; please see previous alerts for a broader overview of the laws’ requirements.
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From ‘Second’ to ‘First:’ Federal Circuit Tackles Obvious Claim Errors
