Rare Decision about Pricing Interorganizational Transfers
Client Alert | 1 min read | 02.14.17
In rare litigation over the pricing of items transferred between a contractor’s commonly controlled subdivisions, C&M successfully appealed a Contracting Officer’s refusal to pay commercial prices for materials a contractor had transferred between its business units. In A-T Solutions, Inc. (ATS), ASBCA No. 59338, the Board found that ATS was permitted to transfer at price under FAR 31.205-26(e) because it had demonstrated an “established practice” of pricing interorganizational transfers at other than cost for commercial work, as evidenced by records and the testimony of ATS’ witnesses and accounting expert. The Board rejected the Government’s argument that ATS’ internal transfers lacked “economic substance,” holding that FAR 31.205-26(e) does not impose any “economic substance” requirement and that ATS’ internal transfers were adequately recorded at price, notwithstanding limitations in the detail provided by ATS’ accounting software.
Contacts
Insights
Client Alert | 8 min read | 06.03.26
ICC Releases New 2026 Arbitration Rules: Key Changes Effective 1 June 2026
The International Chamber of Commerce (ICC) has released its revised 2026 Arbitration Rules (the 2026 Rules), which entered into force on 1 June 2026. The revisions represent a significant update to the 2021 ICC Rules (the 2021 Rules) and reflect a clear institutional focus on efficiency, procedural flexibility, and expedited dispute resolution.
Client Alert | 3 min read | 06.03.26
Important EU Court Judgment Clarifies Rules on Interest Due in Cartel Damages Cases
Client Alert | 2 min read | 06.02.26
SBA OHA Confirms That the Submission Date for a Proposal with Pricing Controls Size Determination
Client Alert | 5 min read | 06.01.26
California Court Upholds Insurer’s Duty to Defend After Covered Claim Is Dismissed

