No PRB Cost Adjustment For Segment Closings
Client Alert | 1 min read | 06.02.10
In related decisions filed on April 29, the Court of Federal Claims effectively precluded contractors from recovering any costs for unfunded post-retirement benefits (primarily retiree medical and life insurance) in connection with business segment closings, absent a specific contract provision promising to indemnify the contractor for the unfunded liability. In Raytheon v. U.S., the court held that benefits covered by so-called 401(h) subaccounts in the contractor's pension plan (a relatively uncommon situation) are not "pension benefits" and, therefore, are not subject to the segment-closing provisions of CAS 413; in Gen. Elec. Co. v. U.S., the court held that pay-as-you-go benefit plans covering retired employees and dependents (by far the more common situation) are not subject to the provisions of CAS 413 requiring "segment closing" adjustments for pension costs.
Insights
Client Alert | 2 min read | 12.19.25
GAO Cautions Agencies—Over-Redact at Your Own Peril
Bid protest practitioners in recent years have witnessed agencies’ increasing efforts to limit the production of documents and information in response to Government Accountability Office (GAO) bid protests—often will little pushback from GAO. This practice has underscored the notable difference in the scope of bid protest records before GAO versus the Court of Federal Claims. However, in Tiger Natural Gas, Inc., B-423744, Dec. 10, 2025, 2025 CPD ¶ __, GAO made clear that there are limits to the scope of redactions, and GAO will sustain a protest where there is insufficient evidence that the agency’s actions were reasonable.
Client Alert | 7 min read | 12.19.25
In Bid to Ban “Woke AI,” White House Imposes Transparency Requirements on Contractors
Client Alert | 5 min read | 12.19.25
Navigating California’s Evolving Microplastics Landscape in 2026
Client Alert | 19 min read | 12.18.25
2025 GAO Bid Protest Annual Report: Where Have All the Protests Gone?
