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Overhead Pool Flunks "Homogeneity" Test Absent "Benefit" To The Government

Client Alert | 1 min read | 02.23.06

In AM General LLC (Feb. 2, 2006) the ASBCA decided that a contract awarded pursuant to a partial waiver of the Truth in Negotiations Act was nevertheless fully covered by the requirements of the Cost Accounting Standards and that the contractor's creation of a single overhead pool combining military and commercial production was, in the context of that case, a violation of the homogeneity requirements of CAS 418 on the ground that the military business did not "benefit" from the costs of a facility housing only commercial production activities. Subsequent changes to the regulations have reduced risk that a contractor might be exempt from TINA and not from CAS, but the board's conclusion on the meaning of "homogeneous" cost pools is inconsistent with both the text and the drafting history of CAS 418 and could create significant issues for many contractors.

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Client Alert | 4 min read | 05.13.24

Harmonizing AI with EEO Requirements: OFCCP’s Blueprint for Federal Contractors

Now more than ever, federal contractors find themselves at the intersection of innovation and regulation, particularly in the realm of Artificial Intelligence (AI).  AI is now incorporated into a broad range of business systems, including those with the potential to inform contractor employment decisions.  For that reason, the Office of Federal Contract Compliance Programs (OFCCP) has issued new guidance entitled “Artificial Intelligence and Equal Employment Opportunity for Federal Contractors” (the “AI Guide”).  OFCCP issued the AI Guide in accordance with President Biden’s Executive Order 14110 (regarding the “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence”), which we reported on here.  The AI Guide provides answers to commonly asked questions about the use of AI in the Equal Employment Opportunity (EEO) context.  The AI Guide also offers “Promising Practices,” which highlight a number of important considerations for federal contractors.  Focusing on federal contractors’ obligations and attendant risks when utilizing AI to assist in employment-related decisions, the AI Guide also provides recommendations for ensuring compliance with EEO requirements while harnessing the efficiencies of AI....

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