Profit Recoverable in Commercial Item Termination
Client Alert | less than 1 min read | 01.05.15
In SWR, Inc. (Dec. 15), the ASBCA ruled that the termination for convenience of a commercial item contract, before any services had been ordered, still entitled the contractor to "fair compensation" under a more expansive interpretation of "reasonable charges" than the board had previously endorsed, including start-up costs, travel expenses, wages, forfeited deposits, lease mitigation charges, settlement expenses, attorney fees, and other operating expenses. With one dissent, the board also held that contractors are entitled to a reasonable profit on all termination-related charges, despite the lack of express allowance for profit in the standard Commercial Items terms.
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Client Alert | 5 min read | 12.23.25
An ITAR-ly Critical Reminder of Cybersecurity Requirements: DOJ Settles with Swiss Automation, Inc.
Earlier this month, the Department of Justice (DOJ) announced that Swiss Automation Inc., an Illinois-based precision machining company, agreed to pay $421,234 to resolve allegations that it violated the False Claims Act (FCA) by inadequately protecting technical drawings for parts delivered to Department of Defense (DoD) prime contractors. This settlement reflects DOJ's persistent emphasis on cybersecurity compliance across all levels of the defense industrial base, reaching beyond prime contractors to encompass subcontractors and smaller suppliers. The settlement is also a reminder to all contractors not to overlook the often confusing relationship between Controlled Unclassified Information (CUI) and export-controlled information.
Client Alert | 10 min read | 12.23.25
Client Alert | 2 min read | 12.23.25
Record-Setting False Claims Act Settlement Highlights DOJ Commitment to Customs Enforcement
Client Alert | 22 min read | 12.23.25
