Payment is of great concern to small businesses and government contractors.
Various contracts with the federal government are subject to unprecedented cost allowability and accounting leads under the Cost Accounting Standards (CAS) and the Federal Acquisition Regulation (FAR). Understanding the principles for allowability and allocability of costs on government contracts is vital in real cost recovery which are constrained by these regulations and standards. Contractors are also at risk to logically exhaustive audits of their accounting practices and courses of action, particularly by the Defense Contract Audit Agency (DCAA). We generally work with our clients to reason cost accounting and related issues before litigation begins.
Because the Federal Government is a sovereign entity (holds ruling power), it has the right to terminate a contract if there is no longer a need for the product or service. In this case, the contractor would be legally qualified to compensation for costs acquired.
Call Malyszek & Malyszek with your questions about cost recovery. We are here to help you and your business.