30.001 Definitions
Source: FAR 30.001 on acquisition.gov
FAR 30.001 defines essential terms for Cost Accounting Standards administration, ensuring all parties interpret and apply CAS requirements consistently.
Overview
FAR 30.001 provides definitions for key terms used throughout Part 30, which governs Cost Accounting Standards (CAS) administration in federal contracting. These definitions clarify the meaning of terms such as "affected CAS-covered contract or subcontract," "Cognizant Federal agency official (CFAO)," "desirable change," "fixed-price" and "flexibly-priced" contracts, "noncompliance," "required change," and "unilateral change." Understanding these definitions is essential for contractors and contracting officers to ensure proper application of CAS rules, determine contract types, and manage changes in cost accounting practices.
Key Rules
- Affected CAS-covered contract or subcontract
- Defines when a contract or subcontract is impacted by changes or noncompliance in cost accounting practices.
- Cognizant Federal agency official (CFAO)
- Identifies the official responsible for CAS administration.
- Contract Types
- Clarifies what constitutes fixed-price and flexibly-priced contracts for CAS purposes.
- Change Classifications
- Distinguishes between desirable, required, and unilateral changes in cost accounting practices.
- Noncompliance
- Specifies what constitutes noncompliance with CAS or disclosed practices.
Responsibilities
- Contracting Officers: Must use these definitions to interpret and apply CAS requirements accurately.
- Contractors: Must understand these terms to ensure compliance with CAS, especially when making changes to cost accounting practices or determining contract types.
- Agencies: Must assign a CFAO and ensure proper oversight of CAS-covered contracts.
Practical Implications
- This section ensures all parties have a common understanding of critical CAS-related terms, reducing misinterpretation and compliance risks.
- Accurate application of these definitions is vital for contract administration, especially when handling cost accounting changes or addressing noncompliance.
- Misunderstanding these terms can lead to improper contract classification, reporting errors, or disputes over cost allowability.
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-
(1) Used one cost accounting practice to estimate costs and a changed cost accounting practice to accumulate and report costs under the contract or subcontract; or
(2) Used a noncompliant practice for purposes of estimating or accumulating and reporting costs under the contract or subcontract.
Cognizant Federal agency official (CFAO) means the contracting officer assigned by the cognizant Federal agency to administer the CAS.
Desirable change means a compliant 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-
(1) Fixed-price contracts and subcontracts described at 16.202, 16.203 (except when price adjustments are based on actual costs of labor or material, described at 16.203-1(a)(2)), and 16.207;
(2) Fixed-price incentive contracts and subcontracts where the price is not adjusted based on actual costs incurred (subpart 16.4);
(3) Orders issued under indefinite-delivery contracts and subcontracts where final payment is not based on actual costs incurred (subpart 16.5); and
(4) The fixed-hourly rate portion of time-and-materials and labor-hours contracts and subcontracts (subpart 16.6).
Flexibly-priced contracts and subcontracts means-
(1) Fixed-price contracts and subcontracts described at 16.203-1(a)(2), 16.204, 16.205, and 16.206;
(2) Cost-reimbursement contracts and subcontracts (subpart 16.3);
(3) Incentive contracts and subcontracts where the price may be adjusted based on actual costs incurred (subpart 16.4);
(4) Orders issued under indefinite-delivery contracts and subcontracts where final payment is based on actual costs incurred (subpart 16.5); and
(5) The materials portion of time-and-materials contracts and subcontracts (subpart 16.6).
Noncompliance means a failure in estimating, accumulating, or reporting costs to-
(1) Comply with applicable CAS; or
(2) Consistently follow disclosed or established cost accounting practices.
Required change means-
(1) A change in cost accounting practice that a contractor is required to make in order to comply with applicable Standards, modifications or interpretations thereto, that subsequently becomes applicable to an existing CAS-covered contract or subcontract due to the receipt of another CAS-covered contract or subcontract; or
(2) A prospective change to a disclosed or established cost accounting practice when the CFAO determines that the former practice was in compliance with applicable CAS and the change is necessary for the contractor to remain in compliance.
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.