Too Late: Another Government Claim Barred by CDA Statute of Limitations
Client Alert | 1 min read | 06.09.14
In Laguna Constr. (May 29, 2014), the ASBCA barred the government's claim under the CDA statute of limitations when DCAA had issued a report, more than six years prior, finding that the contractor's subcontract management system was "inadequate" and resulted in "a significant risk . . . relative to allocability, allowability, and reasonableness of subcontract costs billed to the U.S. Government." Even though that report did not identify any specific government claim, the Board found that the government knew or should have known of the basis for its specific claim "no later than" the date that DCAA provided the report to the ACO with its general criticisms, emphasizing that the "events fixing liability should have been known when they occurred unless they can be reasonably found to have been either concealed or 'inherently unknowable' at that time," the latest in a string of decisions interpreting the CDA statute of limitations as to government cost claims (discussed here, here, here, here, here, and here).
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On May 7, 2026, the Department of War issued the long-awaited Proposed Rule to implement Section 847 of the FY 2020 National Defense Authorization Act (NDAA) regarding Foreign Ownership, Control or Influence (FOCI) requirements for contractors. The proposed rule would expand the applicability of FOCI reviews, requiring contractors and subcontractors on unclassified “covered contracts” — defense contracts and subcontracts valued in excess of $5 million that are not for commercial products and services — to submit FOCI disclosures to the Defense Counterintelligence and Security Agency (DCSA) for FOCI risk assessment (and as applicable, mitigation) as part of contract award. This would effectively require DCSA assessment and adjudication of FOCI considerations prior to contract award. Thus, both cleared and uncleared defense contractors would be subject to the rigorous DCSA disclosure requirements, scrutiny, and FOCI mitigation. Crowell discussed the Section 847 requirements in a prior alert.
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