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DCAA Executive Compensation Calculation Rejected (Again)

Client Alert | less than 1 min read | 06.21.12

In Metron, Inc., decided on June 4 by the ASBCA, DCAA's flawed methodology for assessing the reasonableness of executive compensation paid by government contractors was rejected for the second time this year by the Board. The board found that Metron appropriately based its compensation decisions on data in a single survey that was most relevant to Metron's business, found that other survey data that DCAA relied on was not relevant to Metron's compensation costs, and rejected all of the "adjustments" that DCAA had made to the relevant survey data because the adjustments were based on speculation and assumptions that were not supported by factual evidence.


Insights

Client Alert | 4 min read | 03.25.26

NAIC Intensifies AI Regulatory Focus: What Health Insurance Payors Need to Know

The National Association of Insurance Commissioners (NAIC) is intensifying its oversight of how insurers use AI — and the pace of regulatory activity shows no signs of slowing. Over the past several months, the NAIC has published a formal Issue Brief staking out its position on federal AI legislation, launched a multistate AI Evaluation Tool pilot aimed at examining insurers’ AI governance programs, and continued to expand adoption of its AI Model Bulletin across state lines. These developments continue a trend towards enhancing regulation; the NAIC adopted AI Principles in 2020 and a Model Bulletin in 2023 clarifying that existing insurance laws apply to AI systems and establishing expectations for governance, documentation, testing, and third-party oversight. That Model Bulletin has now been adopted in approximately 24 states....