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Expert Analysis

Pushing Back On DCAA Audits: Part 3

Law360, New York ( September 2, 2014, 4:07 PM EDT) -- One of the more significant mechanisms the Federal Acquisition Regulation provides to ensure compliance with the cost principles are penalties for contractors seeking reimbursement of certain unallowable costs. However, the FAR and case law set a high standard for the application of penalties, which may only be imposed when certain conditions are met. However, contractors undergoing Defense Contract Audit Agency audits often see recommendations to the administrative contracting officer ("ACO") for significant penalties that go far beyond these limits....

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