We overcame DCAA objections and persuaded DCAA to recommend full payment of the amount of client’s claim.
After we obtained a judgment from the U.S. Court of Federal Claims converting a default termination into one for the convenience of the government, we helped our client through a DCAA audit of the client’s termination settlement proposal in which it sought $4.9 million.
During the almost year-long audit, DCAA questioned every aspect of the client’s costs, including:
- Costs of settling with subcontractors;
- Costs paid to indemnify the surety to complete the project under the performance bond;
- Reasonableness of subcontract prices;
- Reasonableness of personnel salaries; and,
- The purported absence of certified cost or pricing data.
In the end, notwithstanding DCAA’s initial position to question over 80% of the costs claimed, DCAA recommended—and the client received—payment of the full amount originally sought.
