Cost reimbursement contractors burdened with numerous unaudited outstanding Incurred Cost Submissions (ICS) received good news recently because the interpretation of the Federal Statute of Limitations (SOL) has changed. As explained below, the new interpretation significantly affects Incurred Cost Submissions and audits for the most part, to the contractor’s advantage.
Per the SOL, either party to a Federal contract has six years from the “accrual of the claim” to present the claim to the other party. FAR Part 33.201 defines “accrual of the claim” to be the date when all events, that fix the alleged liability of …read more
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