DCAA Redux: Government Loses Another Challenge to Contractor Executive Compensation Cost Reasonableness

In what appears to be a welcome trend for contractors, the ASBCA has once again rejected as “deficient” DCAA’s argument that a contractor’s executive compensation was unreasonable. Earlier this year, in J. F. Taylor, Inc., ASBCA Nos. 56105, 56322 (Jan. 18, 2012), the Board dealt a significant blow to DCAA’s standard application of a 10% range of reasonableness to compensation comparisons, finding...