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Prime Pulls Rug Out From Under Subcontractor Appeal

Client Alert | 1 min read | 09.08.14

The ASBCA's dismissal of an appeal in Binghamton Simulator Co. provides a stark reminder that subcontractors generally do not have privity of contract with the government and therefore cannot appeal contracting officer final decisions – even those that directly affect the sub's rights – unless that appeal is in the name of the prime and with the prime's consent and cooperation. The substantive dispute in this appeal related to the extent of government rights in software provided by Binghamton, and Binghamton had a provision in its subcontract that may have required the prime to sponsor the appeal, but the ASBCA held these were irrelevant because the prime refused to confirm its sponsorship of the appeal to the Board.


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  The CAS Board also rescinded CAS 404 (Capitalization of tangible assets) and CAS 409 (Depreciation of tangible capital assets) but retained certain requirements of CAS 404 and 409, which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