Cost Accounting Standards Administration
FAR Part 30 provides the framework for administering Cost Accounting Standards, ensuring contractors and agencies maintain consistent, compliant cost accounting practices on applicable federal contracts.
Overview
FAR Part 30 establishes the policies and procedures for administering Cost Accounting Standards (CAS) in federal contracts. It outlines the requirements for determining CAS applicability, the types of coverage, disclosure statement requirements, contract clauses, waivers, and the process for handling changes and noncompliance. The part is organized into subparts covering general CAS rules, program requirements, administration, and reserved sections for future or specialized content. FAR Part 30 is essential for ensuring consistency and transparency in cost accounting practices for contractors subject to CAS, and it provides the framework for both contractors and contracting officers to comply with statutory and regulatory cost accounting requirements.
Key Rules
- CAS Applicability and Coverage
- Details when and how CAS applies to contracts, including thresholds and exemptions.
- Disclosure and Reporting Requirements
- Specifies requirements for submitting and amending Disclosure Statements and handling privileged information.
- Contract Clauses and Waivers
- Outlines mandatory contract clauses and the process for requesting waivers from CAS requirements.
- Administration and Noncompliance
- Provides procedures for processing changes to cost accounting practices, resolving noncompliance, and subcontract administration.
Responsibilities
- Contracting Officers: Determine CAS applicability, include appropriate clauses, review disclosures, and resolve noncompliance.
- Contractors: Submit required Disclosure Statements, comply with CAS, and report changes or noncompliance.
- Agencies: Oversee CAS administration and ensure compliance across contracts.
Practical Implications
- FAR Part 30 ensures uniformity and fairness in cost accounting for government contracts, reducing risk of disputes and audit findings.
- Contractors must be diligent in understanding CAS applicability and maintaining accurate disclosures.
- Common pitfalls include late or incomplete disclosures, failure to update practices, and misunderstanding coverage requirements.