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ASBCA Decision a Mixed Bag on Cost Allowability Issues

Client Alert | 1 min read | 05.17.17

In Raytheon Co., ASBCA No. 57743, et al., the Board addressed penalties associated with various unallowable costs, finding that salaries of employees engaged in unallowable lobbying activities were “expressly unallowable” as “directly associated costs,” and subject to level 1 penalties, even though “directly associated costs” are, by definition, not expressly unallowable. The Board also found that costs that Raytheon had previously agreed to treat as unallowable, but erroneously included in incurred cost submissions, were not subject to level 1 penalties because they were not expressly unallowable (the Government apparently did not argue that such costs were subject to level 2 penalties). Finally, the Board held that testimony and other credible evidence can be used to demonstrate allowability of consultant costs in the absence of perfect documentation, and that a contractor must prove the CO’s failure to waive penalties for expressly unallowable costs is an arbitrary and capricious abuse of discretion.

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Client Alert | 6 min read | 12.09.24

Eleven States Sue Asset Managers Alleging ESG Conspiracy to Restrict Coal Production

On November 27, 2024, a group of eleven state attorneys general (the “AGs”) sued three of the world’s largest asset managers (the “Asset Managers”), accusing them of anticompetitive stock acquisitions, deceptive asset management practices, and an antitrust conspiracy to restrict coal output. The states seek declaratory and injunctive relief including divestitures, as well as fines under state laws, although the allegations could provide a basis for follow-on private treble damages claims under the antitrust laws....