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State Slammed For Adopting GAO Recommendation

Client Alert | less than 1 min read | 08.22.07

In Grunley Walsh Int'l v. U.S. (Fed. Cl. Aug. 3, 2007), in which Crowell & Moring represented the successful plaintiff, the Court of Federal Claims held that the Department of State acted arbitrarily when it adopted a GAO recommendation to reverse its own, longstanding interpretation of the total business volume requirement in the Diplomatic Construction Program statute (22 U.S.C. § 4852). The government argued that the court must defer to State's revised interpretation, but the Court refused to do so, because that would "effectively strip this court of any real review in any case where the agency followed a recommendation of the GAO on an interpretation of a statute or regulation."

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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  The CAS Board also rescinded CAS 404 (Capitalization of tangible assets) and CAS 409 (Depreciation of tangible capital assets) but retained certain requirements of CAS 404 and 409, which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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