Insights

Washington – June 26, 2025: Crowell & Moring has been recommended in eight practice areas in the 18th edition of the Legal 500 United States. In addition, partner Daniel Forman, co-chair of the firm’s Government Contracts Group, has been named to the Legal 500’s “Hall of Fame” for Government Contracts.

Washington – June 24, 2024: Crowell & Moring has been recommended in eight practice areas in the 17th edition of the Legal 500 United States. In addition, partner Daniel Forman, co-chair of the firm’s Government Contracts Group, has been named to the Legal 500’s “Hall of Fame” for Government Contracts.

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  The CAS Board also rescinded CAS 404 (Capitalization of tangible assets) and CAS 409 (Depreciation of tangible capital assets) but retained certain requirements of CAS 404 and 409, which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

On April 30, 2026, President Trump issued an executive order (EO) titled Promoting Efficiency, Accountability, and Performance in Federal Contracting, requiring agencies to “default” to fixed-price contracting to “protect taxpayer dollars, hold contractors accountable, and achieve demonstrable returns on investment.” The EO directs new approval processes for contract awards going forward, modification of certain existing contracts, and amendments to the Federal Acquisition Regulation (FAR).

A recent Armed Services Board of Contract Appeals decision provides useful guidance on when the government may (or may not) waive its defense that a contractor’s claim failed to state a sum certain. In GE Renewables US, LLC, the contractor had submitted a claim to the contracting officer for a determination that the contractor had the right to an economic price adjustment (EPA) due to an inflation-related price increase. Notably, the contractor did not provide the value of its requested adjustment in its claim. The contracting officer denied the claim, and the contractor appealed to the Board.

The federal government awards billions of dollars in grants annually to fund public service, support non-profits, drive research initiatives and fund programs for colleges and universities.  With the Infrastructure Investment and Jobs Act (the “Act”), the Federal Government is poised to launch $1.2 trillion into the economy, providing funding to commercial entities through federal grants over the next 5 years, which will impact the infrastructure of this country for the next generation.  Like government contracts, federal grants have their own myriad of regulatory requirements that each grant recipient must meet and which are flowed down to subrecipients and subcontractors.  

Nicole Owren-Wiest and Erin Rankin continue their discussion of TINA. In this episode, they dive into the definition of cost or pricing data. Spoiler alert: the devil’s in the details. “It All Adds Up” is Crowell & Moring’s podcast covering the latest government contract accounting, cost, and pricing developments.

Nicole Owren-Wiest and Erin Rankin talk TINA. What is the Truthful Cost or Pricing Data Act, formerly known as the Truth in Negotiations Act? When are contractors and subcontractors required to provide certified cost or pricing data? And what does Nicole’s Cookie Monster coffee mug have to do with it? “It All Adds Up” is Crowell & Moring’s podcast covering the latest government contract accounting, cost, and pricing developments.

To set the groundwork for future episodes, Nicole Owren-Wiest and Erin Rankin talk fundamentals: What is the purpose behind the often counter-intuitive and complex government contracts cost and pricing rules? What are the various price analysis techniques available to the world’s largest buyer of goods and services? “It All Adds Up” is Crowell & Moring’s podcast covering the latest government contract accounting, cost, and pricing developments.