B&P Costs Don't Include Sub Costs Or Profit
Client Alert | less than 1 min read | 07.30.04
In Gentex Corp. v. U.S. (June 10, 2004), the Court of Federal Claims decided two issues of first impression for the court adversely to the contractor: (1) even when a solicitation specifically requests teams to respond, the B&P costs of teammates of the prime are not recoverable unless they are in a joint venture or in some other way are prime contractors themselves and (2) profit is not recoverable on the contractor's costs.
Insights
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On June 17, 2026, the U.S. Department of Justice’s (DOJ( National Security Division (NSD) announced that it had issued a declination for Robert Bosch GmbH (Bosch) relating to potential violations of the Export Control Reform Act, 50 U.S.C. § 4819 (ECRA). Specifically, the DOJ declined to criminally prosecute Bosch’s violations of the Export Administration Regulations’ (EAR) Foreign Direct Product Rule (FDPR), which apparently resulted from two Bosch subsidiaries’ export of products and software manufactured with equipment that was the direct product of U.S. software or technology to Huawei Technologies Co., Ltd. and its “Entity List” affiliates, including Huawei Tech. Investment Co., Ltd., Hong Kong (collectively, Huawei). The same day, the U.S. Department of Commerce Bureau of Industry and Security (BIS) announced a parallel civil administrative settlement with Bosch.
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