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New Push Toward Project Labor Agreements For Federal Construction Work

Client Alert | 1 min read | 04.20.10

On April 13, 2010, the FAR Councils issued a final rule implementing an executive order that encourages federal agencies to use project labor agreements--defined as pre-hire collective bargaining agreements with one or more labor unions that establish the terms and conditions of employment for a specific project--for federal construction contracts, when the total cost to the government is $25 million or more. If an agency determines that such agreements would "[a]dvance the Federal Government's interest in achieving economy and efficiency in Federal procurement producing labor-management stability, and ensuring compliance with laws and regulations governing safety and health, equal employment opportunity, labor and employment standards, and other matters," it must insert a solicitation and/or contract provision requiring prime contractors and subcontractors (if engaged in construction services) to negotiate a project labor agreement with one or more labor unions for the term of the construction 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  The CAS Board also rescinded CAS 404 (Capitalization of tangible assets) and CAS 409 (Depreciation of tangible capital assets) but retained certain requirements of CAS 404 and 409, which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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