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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.

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Client Alert | 2 min read | 07.15.26

CMMC Phase II Suspension Requires Reconsideration of Such Requirements in Solicitations

As discussed in more detail here, the U.S. Department of War (DoW) recently issued a memorandum (Memo 26-P-1023, dated July 13, 2026) directing the immediate suspension of Cybersecurity Maturity Model Certification (CMMC) Phase II requirements (Level I and II self assessments are still permitted). Significantly, the memo directs that “all pending and future CMMC implementation milestones across DoW solicitations and contracts are held in abeyance until further notice.” Moreover, the DoW issued a memorandum on implementing these requirements (available here), directing agencies to issue amendments removing CMMC Level 2 and 3 requirements from active solicitations “as soon as practicable.” Contractors should monitor the government’s compliance with this requirement and should be prepared, if needed, to file a bid protest to protect their rights....