This is the only cost principle that expressly addresses joint ventures. The principle disallows the costs of litigation between co-venturers unless the disputed agreement or actions are incurred as a result of compliance with specific terms and conditions of the contract or written instructions from the CO. Disallowed costs include not only outside lawyers and consultants but also the directly associated in-house management, accounting, administrative and clerical personnel costs.
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To discuss your needs, contact Bill Lennett, Principal, at 1-925-362-0712 or email him at
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