FAR -- Part 30 Cost Accounting Standards Administration

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FAR -- Part 30
Cost Accounting Standards Administration

(FAC 2005-83)
(1 October 2015)

30.000 -- Scope of Part.

This part describes policies and procedures for applying the Cost Accounting Standards Board (CASB) rules and regulations (48 CFR Chapter 99 (FAR Appendix)) to negotiated contracts and subcontracts. This part does not apply to sealed bid contracts or to any contract with a small business concern (see 48 CFR 9903.201-1(b) (FAR Appendix) for these and other exemptions).

30.001 – Definitions,

As used in this part--

“Affected CAS-covered contract or subcontract” means a contract or subcontract subject to Cost Accounting Standards (CAS) rules and regulations for which a contractor or subcontractor--

“Cognizant Federal agency official (CFAO)” means the contracting officer assigned by the cognizant Federal agency to administer the CAS.

“Desirable change” means a unilateral change to a contractor's established or disclosed cost accounting practices that the CFAO finds is desirable and not detrimental to the Government and is, therefore, not subject to the no increased cost prohibition provisions of CAS-covered contracts and subcontracts affected by the change.

“Fixed-price contracts and subcontracts” means--

“Flexibly-priced contracts and subcontracts” means--

“Noncompliance” means a failure in estimating, accumulating, or reporting costs to--

“Required change” means—

“Unilateral change” means a change in cost accounting practice from one compliant practice to another compliant practice that a contractor with a CAS-covered contract(s) or subcontract(s) elects to make that has not been deemed a desirable change by the CFAO and for which the Government will pay no aggregate increased costs.

Subpart 30.1 -- General

30.101 -- Cost Accounting Standards.

(a) 41 U.S.C. chapter 15, Cost Accounting Standards, requires certain contractors and subcontractors to comply with Cost Accounting Standards (CAS) and to disclose in writing and follow consistently their cost accounting practices.

(b) Contracts that refer to this Part 30 for the purpose of applying the policies, procedures, standards and regulations promulgated by the CASB pursuant to 41 U.S.C. chapter 15, shall be deemed to refer to the CAS, and any other regulations promulgated by the CASB (see 48 CFR Chapter 99), all of which are hereby incorporated in this Part 30.

(c) The appendix to the FAR loose-leaf edition contains --

(d) The preambles are not regulatory but are intended to explain why the Standards and related Rules and Regulations were written, and to provide rationale for positions taken relative to issues raised in the public comments. The preambles are printed in chronological order to provide an administrative history.

30.102 -- Cost Accounting Standards Board Publication.

Copies of the CASB Standards and Regulations are printed in title 48 of the Code of Federal Regulations, Chapter 99, and may be obtained by writing the --
Superintendent of Documents
U.S. Government Publishing Office
Washington, DC 20402
or by calling the Washington, DC, ordering desk at area code (202) 512-1800.

Subpart 30.2 -- CAS Program Requirements

30.201 -- Contract Requirements.

Title 48 CFR 9903.201-1 (FAR Appendix) describes the rules for determining whether a proposed contract or subcontract is exempt from CAS. Negotiated contracts not exempt in accordance with 48 CFR 9903.201-1(b) shall be subject to CAS. A CAS-covered contract may be subject to either full or modified coverage. The rules for determining whether full or modified coverage applies are in 48 CFR 9903.201-2 (FAR Appendix).

30.201-1 -- CAS Applicability.

See 48 CFR 9903.201-1 (FAR Appendix).

30.201-2 -- Types of CAS Coverage.

See 48 CFR 9903.201-2 (FAR Appendix).

30.201-3 -- Solicitation Provisions.

(a) The contracting officer shall insert the provision at 52.230-1, Cost Accounting Standards Notices and Certification, in solicitations for proposed contracts subject to CAS as specified in 48 CFR 9903.201 (FAR Appendix).

(b) If an award to an educational institution is contemplated prior to July 1, 1997, the contracting officer shall insert the basic provision set forth at 52.230-1 with its Alternate I, unless the contract is to be performed by a Federally Funded Research and Development Center (FFRDC) (see 48 CFR 9903.201-2(c)(5) (FAR Appendix)), or the provision at 48 CFR 9903.201-2(c)(6) (FAR Appendix) applies.

(c) Insert the provision at FAR 52.230-7, Proposal Disclosure--Cost Accounting Practice Changes, in solicitations for contracts subject to CAS as specified in 48 CFR 9903.201 (FAR Appendix).

30.201-4 -- Contract Clauses.

(a) Cost Accounting Standards.

(b) Disclosure and Consistency of Cost Accounting Practices.

(c) Disclosure and Consistency of Cost Accounting Practices--Foreign Concerns.

(d) Administration of Cost Accounting Standards.

(e) Cost Accounting Standards -- Educational Institutions.

30.201-5 -- Waiver.

(a) The head of the agency--

(b) The head of the agency may grant a waiver when one of the following conditions exists:

(c) When one of the conditions in paragraph (b) of this subsection exists, the request for waiver should include the following:

(d) When neither of the conditions in paragraph (b) of this subsection exists, the waiver request must be prepared in accordance with 48 CFR 9903.201-5(e) (FAR Appendix) and submitted to the CAS Board.

(e) Each agency must report any waivers granted under paragraph (a) of this subsection to the CAS Board, on a fiscal year basis, not later than 90 days after the close of the Government's fiscal year.

30.201-6 -- Findings.

See 48 CFR 9903.201-6 (FAR Appendix).

30.201-7 -- Cognizant Federal Agency Responsibilities.

See 48 CFR 9903.201-7 (FAR Appendix).

30.202 -- Disclosure Requirements.

30.202-1 -- General Requirements.

See 48 CFR 9903.202-1 (FAR Appendix).

30.202-2 -- Impracticality of Submission.

See 48 CFR 9903.202-2 (FAR Appendix).

30.202-3 -- Amendments and Revisions.

See 48 CFR 9903.202-3 (FAR Appendix).

30.202-4 -- Privileged and Confidential Information.

See 48 CFR 9903.202-4 (FAR Appendix).

30.202-5 -- Filing Disclosure Statements.

See 48 CFR 9903.202-5 (FAR Appendix).

30.202-6 -- Responsibilities.

(a) The contracting officer is responsible for determining when a proposed contract may require CAS coverage and for including the appropriate notice in the solicitation. The contracting officer must then ensure that the offeror has made the required solicitation certifications and that required Disclosure Statements are submitted. (Also see 48 CFR 9903.201-3 and 9903.202 (FAR Appendix).)

(b) The contracting officer shall not award a CAS-covered contract until the cognizant Federal agency official (CFAO) has made a written determination that a required Disclosure Statement is adequate unless, in order to protect the Government’s interest, the agency head, on a nondelegable basis, authorizes award without obtaining submission of the required Disclosure Statement (see 48 CFR 9903.202-2). In this event, the contractor shall submit the required Disclosure Statement and the CFAO shall make a determination of adequacy as soon as possible after the award.

(c) The cognizant auditor is responsible for conducting reviews of Disclosure Statements for adequacy and compliance.

(d) The CFAO is responsible for issuing determinations of adequacy and compliance of the Disclosure Statement.

30.202-7 -- Determinations.

(a) Adequacy determination.

(b) Compliance determination.

30.202-8 -- Subcontractor Disclosure Statements.

(a) When the Government requires determinations of adequacy of subcontractor disclosure statements, the CFAO for the subcontractor shall provide this determination to the CFAO for the contractor or next higher-tier subcontractor. The higher tier CFAO shall not change the determination of the lower-tier CFAO.

(b) Any determination that it is impractical to secure a subcontractor’s Disclosure Statement must be made in accordance with 48 CFR 9903.202-2 (FAR Appendix).

Subpart 30.3 -- CAS Rules and Regulations [Reserved]

Subpart 30.4 -- Cost Accounting Standards [Reserved]

Subpart 30.5 -- Cost Accounting Standards for Educational Institutions [Reserved]

Subpart 30.6 -- CAS Administration

30.601 -- Responsibility.

(a) The CFAO shall perform CAS administration for all contracts and subcontracts in a business unit even when the contracting officer retains other administration functions. The CFAO shall make all CAS- related required determinations and findings (see Subpart 1.7) for all CAS-covered contracts and subcontracts, including--

(b) Within 30 days after the award of any new contract subject to CAS, the contracting officer making the award shall request the CFAO to perform administration for CAS matters (see Subpart 42.2). For subcontract awards, the contractor awarding the subcontract must follow the procedures at 52.230-6(l), (m), and (n).

(c) In performing CAS administration, the CFAO shall request and consider the advice of the auditor as appropriate (see 1.602-2).

30.602 -- Materiality.

(a) In determining materiality, the CFAO shall use the criteria in 48 CFR 9903.305 (FAR Appendix).

(b) A CFAO determination of materiality--

(c) When the CFAO determines the cost impact is immaterial, the CFAO shall--

(d) For required, unilateral, and desirable changes, and CAS noncompliances, when the amount involved is material, the CFAO shall follow the applicable provisions in 30.603, 30.604, 30.606, and 30.606.

30.603 -- Changes to Disclosed or Established Cost Accounting Practices.

30.603-1 – Required Changes.

(a) General. Offerors shall state whether or not the award of a contract would require a change to an established cost accounting practice affecting existing contracts and subcontracts (see 52.230-1). The contracting officer shall notify the CFAO if the offeror states that a change in cost accounting practice would be required.

(b) CFAO responsibilities. Prior to making an equitable adjustment under the applicable paragraph(s) that address a required change at 52.230-2, Cost Accounting Standards; 52.230-3, Disclosure and Consistency of Cost Accounting Practices; or 52.230-5, Cost Accounting Standards--Educational Institution, the CFAO shall determine that--

(c) Notice and proposal preparation.

(d) Equitable adjustments for new or modified standards.

30.603-2 – Unilateral and Desirable Changes.

(a) Unilateral changes.

(b) Desirable changes.

(c) Notice and proposal preparation.

(d) Retroactive changes.

(e) Contractor accounting changes due to external restructuring activities. The requirements for contract price and cost adjustments do not apply to compliant cost accounting practice changes that are directly associated with external restructuring activities that are subject to and meet the requirements of 10 U.S.C. 2325. However, the disclosure requirements in 52.230-6(b) shall be followed.

30.604 – Processing Changes to Disclosed or Established Cost Accounting Practices.

(a) Scope. This section applies to required, unilateral, and desirable changes in cost accounting practices.

(b) Procedures. Upon receipt of the contractor's notification and description of the change in cost accounting practice, the CFAO, should review the proposed change concurrently for adequacy and compliance. The CFAO shall--

(c) Evaluating requests for desirable changes.

(d) General dollar magnitude proposal. The GDM proposal--

(e) General dollar magnitude proposal content. The GDM proposal--

(f) General dollar magnitude proposal evaluation. The CFAO shall promptly evaluate the GDM proposal. If the cost impact is immaterial, the CFAO shall notify the contractor in writing and conclude the cost-impact process with no contract adjustments. Otherwise, the CFAO shall—

(g) Detailed cost-impact proposal. If the contractor is required to submit a DCI proposal, the CFAO shall promptly evaluate the DCI proposal and follow the procedures at 30.606 to negotiate and resolve the cost impact. The DCI proposal—

(h) Calculating cost impacts. The cost impact calculation shall--

(i) Remedies. If the contractor does not submit the accounting change description or the proposals required in paragraph (d) or (g) of this section within the specified time, or any extension granted by the CFAO, the CFAO shall--

30.605 – Processing Noncompliances.

(a) General. Prior to making any contract price or cost adjustments under the applicable paragraph(s) addressing noncompliance at 52.230-2, 52.230-3, or 52.230-5, the CFAO shall determine that--

(b) Notice and determination.

(c) Correcting noncompliances.

(d) General dollar magnitude proposal content. The GDM proposal--

(e) General dollar magnitude proposal evaluation. The CFAO shall promptly evaluate the GDM proposal. If the cost impact is immaterial, the CFAO shall follow the requirements in paragraph (b)(4) of this section. Otherwise, the CFAO shall--

(f) Detailed cost-impact proposal. If the contractor is required to submit a DCI proposal, the CFAO shall promptly evaluate the DCI proposal and follow the procedures at 30.606 to negotiate and resolve the cost impact. The DCI proposal—

(g) Interest. The CFAO shall--

(h) Calculating cost impacts. The cost impact calculation shall--

(i) Remedies. If the contractor does not correct the noncompliance or submit the proposal required in paragraph (d) or (f) of this section within the specified time, or any extension granted by the CFAO, the CFAO shall follow the procedures at 30.604(i).

30.606 – Resolving Cost Impacts.

(a) General.

(b) Negotiations. The CFAO shall--

(c) Contract adjustments.

(d) Alternate methods.

30.607 – Subcontracting Administration.

When a negotiated CAS price adjustment or a determination of noncompliance is required at the subcontract level, the CFAO for the subcontractor shall furnish a copy of the negotiation memorandum or the determination to the CFAO for the contractor of the next higher-tier subcontractor. The CFAO of the contractor or the next higher-tier subcontractor shall not change the determination of the CFAO for the lower-tier subcontractor. If the subcontractor refuses to submit a GDM or DCI proposal, remedies are made at the prime contractor level.


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