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 | 4 min read | 01.07.26
On December 17, 2025, the U.S. Food and Drug Administration (FDA) issued a request for information (RFI) on a proposal designed to help the FDA engage more directly with innovative, venture-backed companies focused on biotechnology, medical devices, AI, and regulatory technology.[i]The RFI includes 19 questions, with responses due by 2:00 p.m. ET on January 18, 2026.
Client Alert | 3 min read | 01.07.26
CMMC for AI? Defense Policy Law Imposes AI Security Framework and Requirements on Contractors
Client Alert | 3 min read | 01.07.26
New Year, Same CIPA Uncertainty – When Will the Appellate Courts Enter the Chat?
Client Alert | 11 min read | 01.07.26
