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On September 30, the Office of the Undersecretary of Defense for Acquisition and Sustainment issued a memorandum titled “Delegation of Defective Pricing Authority to the Defense Contract Management Agency,” describing DCMA’s new, enhanced role in TINA audits and subsequent disputes. The memo states that DCMA has created a “Defective Pricing Pilot Team,” which will “provide support” to PCOs and DCAA auditors in connection with defective pricing matters. According to the memo: “Effective immediately” PCOs may delegate to DCMA traditional PCO functions under FAR 15.407-1(b), (d), and (e), to DCMA, and DCMA will take “all actions” to resolve defective pricing issues on such matters, including, inter alia, “issu[ing] contracting officer final decisions” and “litigat[ing] any appeal or case that results from delegated DCMA defective pricing actions.” While it remains to be seen how DoD customers will implement this delegation of authority, contractors facing defective pricing allegations should be aware that DCMA may play an increasingly visible role in negotiating and litigating TINA disputes going forward.

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Photo of Steve McBrady Steve McBrady

Steve McBrady is a partner and co-chair of Crowell & Moring’s Government Contracts Group. He also serves as a member of the firm’s Finance and Strategic Growth Committees, where he has played a leading role in expanding client service offerings throughout the U.S.…

Steve McBrady is a partner and co-chair of Crowell & Moring’s Government Contracts Group. He also serves as a member of the firm’s Finance and Strategic Growth Committees, where he has played a leading role in expanding client service offerings throughout the U.S., Europe, Asia, and the Middle East.

In recent years, Steve has received the National Law Journal’s “Winning Litigator” award as a lawyer who has “tackled some of the most widely watched cases of the year,” as well as the “D.C. Trailblazer” award, recognizing lawyers who have “made significant marks on the practice.” In 2018, he was named “Government Contracts MVP” by Law360.

Photo of Brian Tully McLaughlin Brian Tully McLaughlin

Brian Tully McLaughlin is a partner in the Government Contracts Group in Washington, D.C. and co-chair of the False Claims Act Practice. Tully’s practice focuses on False Claims Act investigations and litigation, particularly trial and appellate work, as well as litigation of a…

Brian Tully McLaughlin is a partner in the Government Contracts Group in Washington, D.C. and co-chair of the False Claims Act Practice. Tully’s practice focuses on False Claims Act investigations and litigation, particularly trial and appellate work, as well as litigation of a variety of complex claims, disputes, and recovery matters. Tully’s False Claims Act experience spans procurement fraud, healthcare fraud, defense industry fraud, and more. He conducts internal investigations and represents clients in government investigations who are facing fraud or False Claims Act allegations. Tully has successfully litigated False Claims Act cases through trial and appeal, both those brought by whistleblowers / qui tam relators and the Department of Justice alike. He also focuses on affirmative claims recovery matters, analyzing potential claims and changes, counseling clients, and representing government contractors, including subcontractors, in claims and disputes proceedings before administrative boards of contract appeals and the Court of Federal Claims, as well as in international arbitration. His claims recovery experience includes unprecedented damages and fee awards. Tully has appeared and tried cases before judges and juries in federal district courts, state courts, and administrative boards of contract appeals, and he has argued successful appeals before the D.C. Circuit, the Federal Circuit, and the Fourth and Seventh Circuits.

Photo of Nicole Owren-Wiest Nicole Owren-Wiest

Nicole Owren-Wiest is a partner and member of the Steering Committee of Crowell & Moring’s Government Contracts Group in the firm’s Washington, D.C. office. Nicole is nationally ranked by Chambers USA in Government Contracts and a recognized leader in two of the most…

Nicole Owren-Wiest is a partner and member of the Steering Committee of Crowell & Moring’s Government Contracts Group in the firm’s Washington, D.C. office. Nicole is nationally ranked by Chambers USA in Government Contracts and a recognized leader in two of the most complex areas in government contracting: accounting, cost, and pricing, and intellectual property/data rights. With over 20 years’ experience, Nicole has a broad counseling and dispute-resolution practice and leads the Group’s cost accounting practice, which focuses on helping clients navigate the government’s complex cost and pricing rules, including the FAR Part 31 cost principles, the Cost Accounting Standards (CAS), and Truth in Negotiations Act/Truthful Cost or Pricing Data (defective pricing).

Photo of Skye Mathieson Skye Mathieson

Skye Mathieson is a partner in the Government Contracts Group in Crowell & Moring’s Washington, D.C. office. He works with and advises clients from diverse industries on a wide array of matters, including contract performance disputes (CDA claims and equitable adjustments), cost allowability…

Skye Mathieson is a partner in the Government Contracts Group in Crowell & Moring’s Washington, D.C. office. He works with and advises clients from diverse industries on a wide array of matters, including contract performance disputes (CDA claims and equitable adjustments), cost allowability issues, defective pricing, fiscal law questions, prime-sub disputes, bid protests, internal investigations, and responding to DCAA audits. Prior to joining Crowell & Moring, Skye spent several years as a trial attorney at the procurement litigation division of the Air Force Headquarters for Legal Operations, where he pioneered the seminal “Laguna Defense” that is now widely raised and litigated at the Boards of Contract Appeals.

Skye has extensive experience litigating cases before the Armed Services Board of Contract Appeals (ASBCA), the Civilian Board of Contract Appeals (CBCA), the Government Accountability Office (GAO), and the Small Business Administration (SBA). Through this litigation, Skye has gained valuable experience in a wide variety of industries, such as aerospace (fighter jets, satellites, refueling tankers, simulators, and counter-measures), information technology and software development, construction, healthcare services, intelligence gathering, battlefield services and logistics, scrap disposal, base maintenance and repair contracts, and many others.

Skye also has experience counseling and litigating on a broad range of legal issues, including defective pricing, cost disallowances, contract terminations, unique commercial item issues, constructive changes, differing site conditions, statute of limitations problems, CDA jurisdictional hurdles, contract fraud, Government superior knowledge, unabsorbed overhead and Eichleay damages, CICA stays and overrides, and small business issues.

Having advocated and litigated on behalf of both the government and contractors, Skye has unique insights into both parties’ perspectives that he leverages when exploring and negotiating settlements or other avenues for alternative dispute resolution (ADR). Where settlements are not possible, Skye embraces opportunities for courtroom advocacy. He has significant trial experience examining both expert and fact witnesses on both direct and cross examination, as well as taking and defending depositions, drafting hearing briefs and dispositive motions, and managing millions of pages of document production.

Skye is an active member of the government contracts community. He is the editor-in-chief of the BCA Bar Journal, a quarterly publication of the Boards of Contract Appeals Bar Association, which allows him to work alongside judges, government attorneys, and in-house counsel in the production of each issue. He is also a member of the ABA Section of Public Contract Law.

Photo of Charles Baek Charles Baek

Charles Baek is a counsel in Crowell & Moring’s Washington, D.C. office, where he practices in the Government Contracts Group.

Charles represents government contractors in both litigation and counseling matters. His practice focuses on contract claims/disputes under the Contract Disputes Act (CDA), litigation…

Charles Baek is a counsel in Crowell & Moring’s Washington, D.C. office, where he practices in the Government Contracts Group.

Charles represents government contractors in both litigation and counseling matters. His practice focuses on contract claims/disputes under the Contract Disputes Act (CDA), litigation before the Armed Services Board of Contract Appeals (ASBCA), federal regulatory and ethics compliance and due diligence, bid protests before the Government Accountability Office (GAO), and False Claims Act (FCA) investigations. His practice also includes state contracting due diligence and litigation before the Court of Federal Claims.