Referral to Cost Cap Adjudication Panel – Circumstances

In Simple Terms

When the Cost Cap Administration finds evidence that a team has broken spending rules, and either no settlement agreement was offered, no settlement was accepted, or a team violated the terms of a settlement they agreed to, the case gets escalated to a special panel (the Cost Cap Adjudication Panel) to make a formal decision on penalties.

• Cases are only referred to the panel when breaches are actually asserted (claimed) by the administration
• A referral happens if no settlement agreement (ABA) was offered or accepted by the team
• If a team previously agreed to settlement terms but then violated them, the case is also referred
• The panel handles the case only after the investigation is complete