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Enhanced Requirements for Cost-Reimbursement Contracting

Client Alert | 1 min read | 03.16.11

As required by the FY 2009 DOD Authorization Act, the Federal Acquisition Regulation has been amended effective March 16, 2011 (76 Fed. Reg. 14543), to add new provisions controlling the Government's decision to award cost-reimbursement contracts. The enhanced regulations focus on the Government's internal processes, but the provisions most likely to affect contractors directly are the requirement for appointment of a qualified contracting officer's representative (COR) or contracting officer's technical representative (COTR) prior to award of cost-reimbursement contracts and assignment on a non-delegable basis to the cognizant federal agency official (CFAO -- generally the ACO for DOD contractors) of responsibility for determining the adequacy of the contractor's accounting system during the entire period of contract performance, with no express limit in the regulation as to the type of contract covered by that provision.

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Client Alert | 8 min read | 10.01.25

BIS Issues “Affiliates Rule” to Dramatically Expand Applicability of Entity and Military End-User Lists

On September 29, 2025, the U.S. Department of Commerce Bureau of Industry and Security (BIS) announced a sweeping Interim Final Rule (IFR), (the “Affiliates Rule”) expanding which entities qualify as Entity List or Military End-User entities, thereby subjecting those entities to elevated export control restrictions under the Export Administration Regulations (EAR). U.S. export restrictions applicable to entities on the Entity List, Military End-User (MEU) List, and Specially Designated Nationals and Blocked Persons (SDN List) now apply to foreign affiliates that are, in the aggregate, owned 50% or more by one or more of the aforementioned entities. An entity that becomes subject to these restrictions because of its ownership structure will be subject to the most restrictive controls that attach to any of its parent entities, regardless of ownership stakes....