Contract disputes frequently arise in regard to cost allocation, allowing most commercial contracts to include clauses based on cost accounting information. Moreover, by implementing explicit instructions in writing at the time the contract is signed may reduce any disputes that may arise. All contracts with US government agencies must comply with cost accounting standards issued by (CASB) The Cost Accounting Standards Board. (Pearson Chp. 15 pg. 559) There are two main ways that the US government reimburses most contractors: the contractor is paid a set price without analysis of actual contract cost data, or the contractor is paid after analysis of actual contact cost data. These standards are created to attain uniformity and consistency…show more content… Records show that the Guard failed to get a legal review for the program, did not conduct any marketing research, and neglected to negotiate the contractor’s fee. (USA Today Feb 2014) Hensen is currently an employee of the company Docupak, making this contract a national recruiting scandal. In addition, Hensen negotiated her job with Docupak while still employed by the National Guard. A ruling from the Montana National Guard ethics committee cleared Hensen for the job with Docupak. Docupak is a full-service marketing firm with a proven history of success for their clients, some of their services include: sponsorships, conference support, awards, and printing. (www.docupak.com) Docupak has thorough experience with military recruiting and retention programs, also administering the Recruiting Assistance Program. The program paid bonuses to soldiers and others for recruiting during the worst wars in Iraq and Afghanistan. (USA Today Feb 2014) This scandal involved thousands of soldiers who fraudulently obtained as much as $100 million in bonuses. Subsequent contracts with Docupak paid out $459 million in bonuses for signing up 150,000
