Many federal government contracts are subject to unique cost accounting and allowability rules under the cost accounting standards (CAS) and the federal acquisition regulation (FAR). These rules can be complex and confusing, especially to contractors unfamiliar with the voluminous requirements. Additionally, contractors are subject to rigorous audits of their cost accounting practices and policies, particularly by the Defense Contract Audit Agency (DCAA).
Failure to understand and adhere to these requirements can be extremely costly to a government contractor. Compliance with the CAS and the FAR is essential for full cost recovery under a contract, while noncompliance can result in the government’s denial of costs or, worse, criminal and civil liability. Cost accounting issues can often arise in False Claims Act allegations, debarment proceedings and bid protests.
Jackson Kelly has extensive experience assisting contractors with the complexities of CAS and FAR cost accounting rules, including cost allowability, CAS disclosure statements and changes to cost accounting practices. Jackson Kelly has assisted clients in responding to government audits and litigating claims involving disallowed costs and CAS noncompliance. Attorneys introduce clients to, and often work closely with, accounting consultants to ensure full compliance with the government’s rules and regulations.
Defended prime contractor with allegedly underfunded pension liability under CAS 412.
Helped contractor respond to Defense Contracting Audit Agency questions regarding its bonus compensation plan and CAS disclosure statement.
Represented research and development contractor in engagements with DCAA regarding numerous issues, including access to internal audits and independent research and development cost allocations.
Represented contractor in connection with pension issues under CAS 412 related to pension liability after a merger and acquisition of another company.
Represented client with unique issues of direct labor allocation in a research and development contract in the wake of the ATK Thiokol decision by the United States Court of Appeals for the Federal Circuit.
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