Rare Decision about Pricing Interorganizational Transfers
Client Alert | 1 min read | 02.14.17
In rare litigation over the pricing of items transferred between a contractor’s commonly controlled subdivisions, C&M successfully appealed a Contracting Officer’s refusal to pay commercial prices for materials a contractor had transferred between its business units. In A-T Solutions, Inc. (ATS), ASBCA No. 59338, the Board found that ATS was permitted to transfer at price under FAR 31.205-26(e) because it had demonstrated an “established practice” of pricing interorganizational transfers at other than cost for commercial work, as evidenced by records and the testimony of ATS’ witnesses and accounting expert. The Board rejected the Government’s argument that ATS’ internal transfers lacked “economic substance,” holding that FAR 31.205-26(e) does not impose any “economic substance” requirement and that ATS’ internal transfers were adequately recorded at price, notwithstanding limitations in the detail provided by ATS’ accounting software.
Insights
Client Alert | 4 min read | 07.02.25
Merger consent orders are back at the FTC, and the FTC’s most recent action showcases how the current leadership is analyzing divestiture proposals. Last week, the FTC approved a proposed consent agreement in Alimentation Couche-Tard Inc.’s (ACT) acquisition of retail fuel outlets from Giant Eagle, Inc. that paired standard retail divestitures with a “prior notice” requirement that ACT notify the agency of future acquisitions in certain markets regardless of size. This FTC has signaled greater acceptance of remedies than the prior administration, and this most recent consent puts that on display, with Commissioner Meador providing merging parties guidance on designing effective remedies.
Client Alert | 4 min read | 07.02.25
Client Alert | 3 min read | 07.02.25
USPTO's Upcoming Changes to the Accelerated Examination Program
