DCAA’s Practices Exposed, Providing Possible Leverage For Contractors

Yesterday, our colleagues James Gallagher and Glenn Sweatt published their client alert discussing a recent and important decision issued by the Armed Services Board of Contract Appeals (ASBCA) in Lockheed Martin Integrated Systems, Inc., ASBCA Nos. 59508 and 59509. The decision exposes what has been in recent years an all-too-familiar practice by the Defense Contract Audit Agency (DCAA) of questioning the allowability of government contractor costs based on meritless arguments and the Defense Contract Management Agency’s (DCMA) related rubber- stamping of the DCCA’s disallowance of costs without proper exercise of its authority. The alert is titled Warning Shot Fired (Finally) at Improper DCAA Cost Disallowance Basis.