30.101
Cost Accounting Standards
Contractors subject to Cost Accounting Standards must disclose and consistently follow their cost accounting practices as required by law and incorporated regulations.
Overview
FAR 30.101 establishes the requirement for certain contractors and subcontractors to comply with Cost Accounting Standards (CAS) as mandated by 41 U.S.C. chapter 15. It requires these entities to disclose their cost accounting practices in writing and to follow them consistently throughout contract performance. The section also clarifies that contracts referencing FAR Part 30 are subject to all CAS policies, procedures, standards, and regulations issued by the Cost Accounting Standards Board (CASB), which are incorporated by reference into this part. This ensures uniformity and transparency in cost accounting for applicable government contracts.
Key Rules
- CAS Compliance Requirement
- Contractors and subcontractors subject to CAS must comply with the standards, disclose their cost accounting practices in writing, and follow those practices consistently.
- Incorporation by Reference
- Contracts referencing FAR Part 30 automatically incorporate all CASB-promulgated standards and regulations, making them enforceable contract requirements.
Responsibilities
- Contracting Officers: Ensure contracts include appropriate CAS clauses and verify contractor compliance.
- Contractors: Disclose cost accounting practices in writing and adhere to CAS requirements.
- Agencies: Oversee and enforce CAS compliance, and reference applicable CASB regulations in contracts.
Practical Implications
- This section ensures cost consistency and transparency in government contracts subject to CAS, reducing the risk of disputes over cost allocation.
- Contractors must be diligent in documenting and following their cost accounting practices to avoid noncompliance.
- Failure to comply can result in contract disputes, penalties, or disallowance of costs.