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Interest Due On Indirect Cost Claims

Client Alert | 1 min read | 10.21.11

In SRI Int'l  (Oct. 5, 2011), the ASBCA addressed for the first time in a comprehensive way the payment of contractor certified claims and Contract Disputes Act interest related to disputes about allowable indirect costs.  In clarifying its original decision holding that the indirect costs at issue were allowable, the Board held that recovery of the principal amount of the contractor’s claim must be accomplished through the normal indirect cost rates, not in a lump sum, and that the contractor is entitled to recover interest on the amount due on the principal amounts actually paid beginning on the date the certified claim was submitted until payment of the indirect costs was made on each contract that was covered by the claim, apparently with that interest to be paid separately to the contractor, leaving it to the parties on remand to determine how that separate payment will be accomplished.


Insights

Client Alert | 4 min read | 07.02.26

A Busy Week for Aviation Regulatory Developments

The week of June 29 brought a flurry of regulatory activity from the Department of Transportation (DOT), the Federal Aviation Administration (FAA), and the Transportation Security Administration (TSA) impacting companies across sectors including airlines, supersonic aircraft manufacturers, drone operators, and owners/operators of critical infrastructure facilities.  A summary of the key developments is below....