Government Contracts

Breakwater provides its clients with valuable insight into cost, price, and schedule issues that arise on government contracts.  Our professionals have decades of experience working with both government entities and companies who have secured government contract awards.  Breakwater has assisted in the development of cost analyses, business system reviews, contract audits, Critical Path Schedule Analyses, program management and cost estimating, and are familiar with the extensive rules, regulations, and statutes that govern the procurement ecosystem.  Our professionals are knowledgeable about the Federal Acquisition Regulations (FAR) and Agency FAR supplements, the Cost Accounting Standards (CAS), False Claims Act, and Truthful Cost or Pricing Data, among others.  Breakwater has investigated compliance and contract performance issues, prepared and rebutted cost and schedule claims, issued expert reports, given deposition testimony, developed trial exhibits, and provided expert witness testimony at trial in support of government contract claims.

REAs and Claims

Breakwater personnel have extensive experience developing, reviewing, and testifying on matters involving Requests for Equitable Adjustment (REAs) and claims for changed work, delay, and disruption.  Our professionals understand that timely and cost-effective dispute resolution is key to maintaining strong working relationships with government customers and prime contractors.  Breakwater collaborates with its clients to find the right balance of maintaining critical business relationships while maximizing the recovery of added costs caused by changed work, delay, and disruption. 

Breakwater is involved in all stages of dispute resolution, from the initial development of REAs to reviewing Certified Claims and litigation support for claims before the Armed Services Board of Contract Appeals, Civilian Board of Contract Appeals, and other venues.  Breakwater personnel develop and advise clients on REA and claim pricing strategies, including cost estimating relationships, productivity and efficiency analyses (e.g., Measured Mile, Earned Value), and time-related costs.  Breakwater analyzes and quantifies the impact of delays and resequencing on tasks, contract options, and overall program schedules.  Our professionals also assist clients in identifying and supporting causation between contract changes and their associated cost increases. 

Breakwater’s REAs and claims experience spans numerous industries, including aircraft development and shipbuilding, weapons and radar systems, military logistics, healthcare, base operations support, IT infrastructure modernization and maintenance, and government facility construction.  Our professionals have assisted both subcontractors and prime contractors with REAs and claims stemming from constructive changes, contract terminations, invalid option exercises, deductive changes, and general delay and disruption.

Investigations, False Claims Act, and Defective Pricing

Breakwater has extensive experience assisting clients with investigation and defense of alleged False Claims Act, Truthful Cost or Pricing Data (formerly TINA), and Anti-Kickback Act violations.  Breakwater has investigated numerous allegations of contractor mischarging and overcharging, including through cost-plus-percentage-of-cost contracts, labor mischarging, intentionally inflated subcontract costs, and failing to disclose Price Reduction Clause triggers on General Services Administration (GSA) contracts, among others.

Breakwater personnel are involved in all stages of False Claims Act investigations and litigation.  Our professionals review financial and accounting data, conduct interviews of knowledgeable personnel, assess contractors’ internal controls, and provide expert testimony.  We investigate and analyze False Claims Act and defective pricing allegations related to contractor compliance with FAR Parts 15, 16, and 31, among others.  Our professionals also perform damages analysis in matters involving alleged defective pricing and false claims related to numerous types of government procurements, including GSA schedule contracts.  Breakwater has analyzed extensive data sets to determine whether non-GSA purchasers received more discounted prices than the GSA and calculated the refunds owed to the Government once a contractor has triggered the Price Reduction Clause. 

Government Audit Support, Response, and Rebuttal

Breakwater understands that a good working relationship with government auditors is essential to doing business with the government.  Breakwater provides services to assist clients with timely resolution of audits and audit-related issues.  Breakwater personnel are involved at every stage of cost and DFARS business system audits and have extensive experience with Defense Contract Management Agency (DCMA), Defense Contract Audit Agency (DCAA), and other government audit agencies.  Our professionals assist contractors with gathering support documentation in response to audit requests, interfacing with government auditors, and responding to and rebutting audit findings.  Breakwater personnel have also presented findings to Contracting Officers in support of negotiations.  Breakwater supports numerous types of audits, including but not limited to: incurred costs, pre-award surveys, termination settlement proposals, defective pricing, accounting systems, purchasing systems, estimating systems, and earned value management systems audits.  Breakwater personnel have also helped clients develop and implement Corrective Action Plans in response to Contracting Officer concerns.  

Terminations for Convenience

Breakwater is experienced in government contract terminations for convenience.  Our personnel prepare, review, and analyze termination settlement proposals (TSPs), including providing expert testimony regarding TSPs and termination issues.  We assist clients in developing TSPs that are compliant with FAR Part 49, the termination cost principle at FAR 31.205-42(g), and other cost principles in FAR Part 31.  Our professionals understand the DCAM Chapter 12 and often assist contractors in preparing for and responding to DCAA audits of TSPs.  Breakwater professionals also negotiate with prime contractors, government Termination Contracting Officers, and lower-tier subcontractors. Breakwater has prepared, audited, and negotiated TSPs with values over $1 billion. 

Compliance and Management Consulting

Breakwater offers a variety of services to assist companies in complying with the complex regulatory environment of US government contracting.  From the FAR and agency supplements to the Cost Accounting Standards, Truthful Cost or Pricing Data statute, False Claims Act, and other regulations and statutes, the federal government contracting space can be difficult to navigate.  Our professionals advise clients on developing business structures and internal controls to best comply with all applicable regulations while minimizing the associated costs of compliance.  Breakwater has experience with all facets of cost and pricing-related compliance, including:

  • Drafting policies and procedures to comply with FAR Part 31, FAR Part 15, DFARS Business Systems, and other government rules and regulations;
  • Preparation and review of lower-tier subcontractor cost analyses required by FAR Part 15;
  • Review and analysis of internal controls and advising on risk management strategies for complying with the FAR, CAS, and other regulations;
  • Review of Incurred Cost Submissions;
  • Analyzing the reasonableness of costs incurred in accordance with FAR Part 31 and guidance in the DCAM;
  • Advising on business structures to streamline operations while maintaining compliant systems; and
  • Conducting mock audits of business systems, including Contractor Purchasing System Reviews and accounting system reviews, among other services.

Bid Protests

Breakwater personnel provide cost realism analysis and expert services on bid protests before the GAO and Court of Federal Claims.  Our professionals are well versed in the 100-day GAO bid protest calendar and have extensive experience assisting both protesters and intervenors in the bid protest process.  Breakwater personnel analyze contract pricing models, review pricing in the context of technical proposal volumes, and provide declarations and advice to counsel regarding cost and price protest grounds.  

Prime Contractor – Subcontractor Disputes

Breakwater personnel analyze government contracting issues and damages claimed as a result of breached teaming and subcontract agreements between prime contractors and subcontractors.  Our professionals have calculated and reviewed lost profits claimed by contractors as a result of alleged federal government contract breaches for both plaintiffs and defendants.  Breakwater has also provided expert testimony on government contracting issues in arbitrations and other forums with a focus on explaining government contracting practices to arbitrators and judges who are unfamiliar with the US government contracting environment.

Services Include, But Are Not Limited To:

  • Requests for Equitable Adjustment (REAs) and Claims Development, Review, and Expert Testimony
  • False Claims Act and Defective Pricing Investigation
  • Government Audit Support, Response, and Rebuttal
  • Analysis of Terminations for Convenience Matters


  • Compliance and Management Consulting
  • Bid Protests Analysis and Expert Testimony
  • Prime Contractor – Subcontractor Dispute Analysis and Expert Testimony

Contact Breakwater

If you are interested in retaining Breakwater Forensics to provide forensic analytics, expert witness, and/or business consulting services for you or your company, please provide details of your needs and we will contact you to discuss how we can assist you.