The rules governing allowability of legal costs when a contractor has been charged with some form of wrongdoing is fairly well established. Generally, if the case is resolved by something other than complete vindication, the associated legal (and other related) costs will probably be questionable. FAR 31.205-47 describes it this way.
New Regulation Formalizes Ombudsman Practice and Identity for IDIQ Contracts
An ‘ombudsman’ is an official charged with addressing and/or investigating the interests of individuals’ or companies’
