1. Home
  2. |Insights
  3. |Overhead Pool Flunks "Homogeneity" Test Absent "Benefit" To The Government

Overhead Pool Flunks "Homogeneity" Test Absent "Benefit" To The Government

Client Alert | 1 min read | 02.23.06

In AM General LLC (Feb. 2, 2006) the ASBCA decided that a contract awarded pursuant to a partial waiver of the Truth in Negotiations Act was nevertheless fully covered by the requirements of the Cost Accounting Standards and that the contractor's creation of a single overhead pool combining military and commercial production was, in the context of that case, a violation of the homogeneity requirements of CAS 418 on the ground that the military business did not "benefit" from the costs of a facility housing only commercial production activities. Subsequent changes to the regulations have reduced risk that a contractor might be exempt from TINA and not from CAS, but the board's conclusion on the meaning of "homogeneous" cost pools is inconsistent with both the text and the drafting history of CAS 418 and could create significant issues for many contractors.

Insights

Client Alert | 5 min read | 12.12.25

Eleventh Circuit Hears Argument on False Claims Act Qui Tam Constitutionality

On the morning of December 12, 2025, the Eleventh Circuit heard argument in United States ex rel. Zafirov v. Florida Medical Associates, LLC, et al., No. 24-13581 (11th Cir. 2025). This case concerns the constitutionality of the False Claims Act (FCA) qui tam provisions and a groundbreaking September 2024 opinion in which the United States District Court for the Middle District of Florida held that the FCA’s qui tam provisions were unconstitutional under Article II. See United States ex rel. Zafirov v. Fla. Med. Assocs., LLC, 751 F. Supp. 3d 1293 (M.D. Fla. 2024). That decision, penned by District Judge Kathryn Kimball Mizelle, was the first success story for a legal theory that has been gaining steam ever since Justices Thomas, Barrett, and Kavanaugh indicated they would be willing to consider arguments about the constitutionality of the qui tam provisions in U.S. ex rel. Polansky v. Exec. Health Res., 599 U.S. 419 (2023). In her opinion, Judge Mizelle held (1) qui tam relators are officers of the U.S. who must be appointed under the Appointments Clause; and (2) historical practice treating qui tam and similar relators as less than “officers” for constitutional purposes was not enough to save the qui tam provisions from the fundamental Article II infirmity the court identified. That ruling was appealed and, after full briefing, including by the government and a bevy of amici, the litigants stepped up to the plate this morning for oral argument....