DOD Bid And Proposal Guidance — Is It Right?

Law360, New York (December 19, 2011, 12:41 PM EST) -- Cost Accounting Standard 402 has long provided that bid and proposal (B&P) costs incurred pursuant to a specific requirement of an existing contract may be distinguished from B&P generally and treated as direct costs of the requiring contract. As CAS 402-61 states:

The circumstances are different because the costs of preparing proposals specifically required by the provisions of an existing contract relate only to that contract while other proposal costs relate to all work of the contractor.

Given this long-established prescription, the Nov. 10, 2011, memorandum...
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