Contractor Can’t Duck Penalty for Including Unallowable Legal Costs Related to Resolution of Government Investigation into Alleged Overbilling; ASBCA No. 61583, Appeal of Energy Matter Conversion Corporation

The government’s motion for summary judgment on a contractor’s appeal of penalties for including expressly unallowable costs in its final indirect cost rate proposals is granted, where legal fees associated with Department of Justice and Navy investigations into the contractor’s alleged overbilling were expressly unallowable, because the investigations were resolved with a compromise settlement and could have led to disbarment.