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Dentons

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The Federal Circuit Summons the Ghost of Disputes Past by Throwing Out a Long-Standing Settlement, Announcing New Limits on a CO’s Authority to Resolve Cost Claims

In a novel decision last week, the Federal Circuit invalidated a years-old cost accounting settlement between the government and a contractor, holding that the parties could not agree to the future treatment of costs in a manner contrary to the FAR. See Sec’y of Def. v. Pratt & Whitney, No. 2023-1337 et al. (Fed. Cir. Dec. 5, 2025).