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No Buyer's Remorse – ASBCA Orders Air Force to Pay for What It Got

Client Alert | 1 min read | 10.09.15

In Honeywell Int'l, Inc. (Sept. 24, 2015), the ASBCA held that the Air Force must pay for two solar arrays that the contractor (represented by C&M) provided under an Energy Savings Performance Contract, even though the Board had earlier determined that certain of the contract's payment terms were "invalid." In finding the Air Force liable under an implied-in-fact contract theory, the Board rejected arguments that the Air Force had never intended to acquire the solar arrays and that the contracting officers had lacked authority to bind the government, explaining that the Air Force, simply by refusing to accept them, could not escape liability for the arrays that were "supplied … as designed, completed on time, and installed as required."


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  The CAS Board also rescinded CAS 404 (Capitalization of tangible assets) and CAS 409 (Depreciation of tangible capital assets) but retained certain requirements of CAS 404 and 409, which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