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Court Re-Affirms Rule On CDA Interest

Client Alert | less than 1 min read | 11.14.06

In Information Int'l Assocs., Inc. (October 31, 2006) the Court of Federal Claims re-affirmed that interest on amounts found due based on a contractor's properly submitted CDA claim begins to run when the claim is submitted, even on costs the contractor does not incur until after claim submission. The Court observed that the CDA "sets a single, red-letter date for interest on all amounts found due by a court without regard to when the contractor incurred the costs" and noted that, when setting the date, "Congress was concerned with fully compensating contractors for additional costs incurred in continuing performance under a contract."

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Client Alert | 1 min read | 07.08.26

CAS Board Publishes Final Rule Rescinding CAS 404, 408, 409, and 4117

As part of its ongoing effort to conform the Cost Accounting Standards (“CAS”) to generally accepted accounting principles (“GAAP”), the CAS Board published a final rule rescinding CAS 408 (Accounting for costs of compensated personal absence) and CAS 411 (Accounting for acquisition costs of material).  The CAS Board also rescinded CAS 404 (Capitalization of tangible assets) and CAS 409 (Depreciation of tangible capital assets) but retained certain requirements of CAS 404 and 409, which will be located in new paragraphs of CAS 405 (Accounting for unallowable costs).  Specifically, the CAS Board retained the requirements currently located at CAS 404-50(d)(1), CAS 409-50(e)(5), CAS 409-50(j)(1), and CAS 409-50(j)(4), which the CAS Board explained are necessary to protect the Government’s interests.  Otherwise, the CAS Board determined that the requirements of CAS 404, 408, 409, and 411 overlapped with GAAP such that GAAP “may be applied reasonably as a substitute for CAS to support contract cost and pricing.”...

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