The subject Acquisition Letter's purpose is to provide guidance to Contracting Officers on allowability of contractor litigation defense and settlement costs in light of Secretary of the Army v. Tecom. The guidance applies to legal costs related to allegations of discrimination where the discrimination is prohibited by the terms of the contract, such as those covered by FAR 52.222-26 (Equal Opportunity), FAR 52.222-35 (Equal Opportunity for Veterans), and FAR 52.222-36 (Affirmative Action for Workers With Disabilities).