1. Home
  2. |Insights
  3. |CAS Price Adjustments Limited To "Affected" Contracts

CAS Price Adjustments Limited To "Affected" Contracts

Client Alert | 1 min read | 06.16.10

In Donley v. Lockheed Martin Corp. (June 10, 2010) (litigated by Crowell & Moring), the Federal Circuit affirmed the ASBCA's decision that a CAS-covered contract that was completely repriced with full disclosure after a change in accounting was not "affected" by the change and was not subject to price adjustment to reflect the impact of the change -- an argument that could also preclude price adjustments on task orders that are negotiated without reliance on cost accounting information under CAS-covered IDIQ contracts. The Court rejected the Justice Department's arguments that the repriced contract was "affected" by the change either because it had been modified rather than completely terminated and re-awarded or because the PCO's agreement to a new price constituted an impermissible "waiver" of the ACO's exclusive right to determine the impact of an accounting change.

Insights

Client Alert | 4 min read | 08.25.26

DOJ Signals Increased Antitrust Scrutiny of Algorithmic Pricing in Willow Bridge Decision

Algorithmic pricing tools commonly used by businesses to increase efficiency and profits are under increasing antitrust scrutiny. This summer, federal regulators, state attorneys general, and state legislatures grappled with competing businesses providing nonpublic, competitively sensitive data to common algorithmic platforms. The Third Circuit deepened an emerging circuit split with the Ninth Circuit on algorithmic pricing liability, reviving antitrust claims against Atlantic City casino-hotels in a decision with direct implications for any company that uses a common pricing platform. See Crowell’s recent client alert. And New Jersey enacted two landmark laws—the FAIR Act and the Fair Price Protection Act—directly regulating algorithmic rent-setting and surveillance pricing. See Crowell’s recent client alert....