Contractor Litigation Costs Policies; Policies, Terms of Law Firm Engagement, and Allowability of Costs

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The Department of Energy today publishes an interim Acquisition Letter for public comment that has been issued to contracting officers who are responsible for the administration of management and operating contracts. The letter sets forth interim policies regarding two contract clauses that are prescribed by the Department of Energy Acquisition Regulation. The letter sets forth a statement of policy with regard to the terms of engagement that should be a condition of any authorization to a current or former management and operating contractor to engage a law firm to defend a lawsuit. The letter also sets forth policies for a contracting officer's consideration in determining whether particular litigation costs are reasonable and therefore allowable.