Acquisition Letters (ALs) are issued under the authorities of the Senior Procurement Executives of DOE and NNSA. ALs are intended for use by procurement professionals of DOE and NNSA, primarily Contracting Officers, and other officials involved in the acquisition process. Only DOE and NNSA Contracting Officers make definitive interpretations of how ALs affect DOE and NNSA contracts and related procedures. ALs are effective upon issuance and until rescinded.

Allowability of Contractor Litigation Defense and Settlement Costs

AL 2014-03

01/6/2014

What is the purpose of this AL/FAL?

The purpose of this AL/FAL 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, 566 F.3d 1037 (Fed. Cir. 2009)(“Tecom”). The guidance applies to legal costs related to allegations of discrimination where the discrimination is prohibited by 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).