Cost and Pricing
Many federal government contracts are subject to special accounting and cost allowability rules under the Federal Acquisition Regulation (FAR) and the Cost Accounting Standards (CAS). Understanding the cost allowability and allocability rules is essential for a company to maximize its legitimate cost recovery while fully complying with the regulations and standards.
Our government contracts attorneys are experienced in handling all aspects of cost and pricing, including counseling on the reasonableness or allowability of costs, advising on compliance with CAS, addressing disclosure of cost or pricing data under the Truth in Negotiations Act (TINA), dealing with indirect cost rates, and litigating these issues before the Board of Contract Appeals or the Court of Federal Claims. Contractors are also subject to increasingly rigorous and comprehensive audits of their accounting practices and policies, particularly by the Defense Contract Audit Agency (DCAA), and we regularly counsel clients on how best to respond to audit findings and concerns.
PRoven Track Record
Our representative matters include:
- Advising clients and providing contractor training on the intricacies of the FAR cost accounting principles and the CAS, including all aspects of cost allowability and allocability, CAS Disclosure Statements, changes in disclosed accounting practices, and incurred cost submissions.
- Representing clients in connection with government and contractor claims relating to disallowed costs, CAS noncompliance, and accounting change cost impacts, including litigating government and contractor cost claims at the boards of contract appeal.