The government's motion to dismiss an appeal involving noncompliance with Cost Accounting Standards was denied by the Armed Services Board of Contract Appeals because there was an appealable and justiciable issue regarding whether the contractor's accounting practice complied with CAS 403. The corporate administrative contracting officer made a final determination the contractor was noncompliant with CAS 403. In accordance with FAR 52.230-6, the CACO directed the contractor to correct the noncompliance, submit a proposed change to its accounting practices, report if existing contracts were affected by the noncompliance, and submit a general dollar magnitude proposal calculating the impact of the alleged noncompliant practice. After the contractor submitted a cost impact analysis showing no adverse impact to government contracts, the government contended there was no longer any dispute for the board to decide and moved to dismiss the appeal without prejudice.
(The news featured above is a selection from the news covered in the Government Contracts Report Letter, which is published weekly and distributed to subscribers of the Government Contracts Reporter. )