Agencies Finalize Rule Governing Allowability of Contractor Whistleblower Costs

The Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) have issued a final rule adopting, with some changes, an interim rule that establishes when a federal defense contractor or subcontractor can recover the amount of legal costs incurred in successfully defending against an employee’s whistleblower action. Specifically, the rule amends the Federal Acquisition Regulation (FAR) to implement the section of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2013 that addresses the allowability of such legal expenses. The interim rule was published on September 30, 2013.