FAR 52.215-16 AND FAR 52.215-17, Facilities Capital Cost of Money

Applicability: These FAR solicitations/clauses address the allowability/reimbursement of facilities capital cost of money. FAR 52.215-16, Facilities Capital Cost of Money, is included in solicitations expected to result in contracts that are subject to FAR Subpart 31.2 (the cost principles for contracts with commercial organizations). FAR 52.215-17, Waiver of Facilities Capital Cost of Money, is included in the contract if the contractor receiving the award did not propose facilities capital cost of money in its offer.   Key Requirements: The solicitation requirement at FAR 52.215-16 and the contract clause at FAR 52.215-17 work in tandem to address the allowability of cost of money under the awarded contract. FAR 52.215-16 states that facilities capital cost of money will be an allowable cost under the contemplated contract, if … Continue reading

Allowable Legal Costs

By Darrell Oyer, Darrell J. Oyer & Co.:  The U.S. Court of Appeals for the Federal Circuit has affirmed a Civilian Board of Contract Appeals ruling that Boeing Co. (successor in interest to Rockwell International Corp) could recover costs related to its defense of a False Claims Act (FCA) lawsuit [Chu v. Boeing Co., Fed. Cir., No. 2011-1304, -1317] In 1989, a relator brought an FCA lawsuit in U.S. District Court alleging that Rockwell had false claims and statements regarding certain environmental matters.  A jury awarded the plaintiff a $4.1 million judgment that a Circuit Court affirmed. However, the Supreme Court found that the District Court lacked jurisdiction to enter judgment in favor of the relator because the relator was not an original source under … Continue reading