Practices  |  Government Contracts

Cost Accounting and Cost Allowability

Overview

Many contracts with the federal government are subject to special cost accounting and allowability rules under the Federal Acquisition Regulation (FAR) and the Cost Accounting Standards (CAS).  Understanding the rules for determining the allowability and allocability of costs to government contracts is critical to maximizing legitimate cost recovery and complying with the myriad cost allowability and allocability requirements imposed by these regulations and standards.  Government contractors are also subject to increasingly rigorous and comprehensive audits of their accounting practices and policies, particularly by the Defense Contract Audit Agency (DCAA). 

Our Government Contracts attorneys are experts in cost accounting matters and are routinely called upon by clients of all sizes to assist with cost allowability and allocability rules and to counsel clients in how best to respond to audit findings and concerns.  We regularly work with our clients to resolve cost accounting and related disputes before litigation occurs.  Our expertise includes: 

  • 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 DCAA audits and audits by other federal agencies and Inspectors General, including preparing responses to auditor questions, findings, document requests, and audit reports, and advising clients on DCAA requests for contractor internal audit reports.
  • Advising clients on compliance with Department of Defense business systems rules, Defense Contract Management Agency (DCMA) Contractor Purchasing System Reviews, and DCAA business systems audits.
  • 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.
  • Preparing termination settlement proposals in convenience terminations and counseling clients on the special cost accounting rules related to terminations.
  • Advising clients and litigating claims relating to executive compensation issues, including the successful representation of J.F. Taylor in its appeal of a government claim for allegedly unreasonable executive compensation.  See J.F. Taylor, Inc.,ASBCA 56105, January 18, 2012, 12-1 BCA ¶ 34920.
  • Assisting clients in responding to allegations of defective cost or pricing data and advising clients regarding the Truth in Negotiations Act.
  • Advising clients regarding pension accounting rules under CAS, including segment closing adjustments.
  • Analyzing cost accounting issues that may arise in other contexts, such as allegations under the False Claims Act (FCA), debarment proceedings, and bid protests.

Our People

Name Position Telephone Email
Rachel A. AlexanderPartner202.719.7371Download vCard
Rand L. AllenPartner202.719.7329Download vCard
Attison L. Barnes, IIIPartner202.719.7385Download vCard
Todd A. BrombergPartner202.719.7357Download vCard
Kathryn BucherPartner202.719.7530Download vCard
Jon W. BurdPartner202.719.7172Download vCard
Ralph J. CacciaPartner202.719.7242Download vCard
Philip J. DavisPartner202.719.7044Download vCard
Scott A. FelderPartner202.719.7029Download vCard
J. Ryan Frazee *Associate202.719.3751Download vCard
Tracye Winfrey HowardPartner202.719.7452Download vCard
Paul F. KhouryPartner202.719.7346Download vCard
Samantha S. LeeAssociate202.719.7551Download vCard
Eric W. LeonardPartner202.719.7185Download vCard
Margaret E. Matavich *Associate202.719.3756Download vCard
Kevin J. MaynardPartner202.719.3143Download vCard
Scott M. McCalebPartner202.719.3193Download vCard
John A. McCulloughConsulting Counsel202.719.7254Download vCard
Christopher M. MillsOf Counsel202.719.4740Download vCard
Erin K. NordConsulting Counsel202.719.7183Download vCard
Richard B. O'Keeffe, Jr.Of Counsel202.719.7396Download vCard
Nicole J. Owren-WiestPartner202.719.7430Download vCard
George E. Petel *Associate202.719.3759Download vCard
Dorthula H. Powell-WoodsonPartner202.719.7150Download vCard
John R. PrairiePartner202.719.7167Download vCard
William A. Roberts, IIIPartner202.719.4955Download vCard
Tyler E. RobinsonAssociate202.719.7497Download vCard
Nina Rustgi *Associate202.719.3761Download vCard
Kara M. SacilottoPartner202.719.7107Download vCard
Craig SmithAssociate202.719.7297Download vCard
Mark B. SweetPartner202.719.4649Download vCard
Kay TatumPartner202.719.7368Download vCard
Roderick L. ThomasPartner202.719.7035Download vCard
Jillian VolkmarAssociate202.719.7527Download vCard
Brian WalshAssociate202.719.7469Download vCard
Gary S. WardAssociate202.719.7571Download vCard
Tara L. WardAssociate202.719.7495Download vCard
Jennifer S. ZuckerPartner202.719.7277Download vCard

*Not admitted to the DC bar. Supervised by the principals of the firm.

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