30.201
Contract requirements
FAR 30.201 requires contractors and contracting officers to determine CAS applicability and coverage type for negotiated contracts, referencing specific exemption and coverage rules in 48 CFR 9903.201-1 and 9903.201-2.
Overview
FAR 30.201 outlines the requirements for determining when a contract or subcontract is subject to Cost Accounting Standards (CAS). It references Title 48 CFR 9903.201-1 for rules on CAS exemptions and states that negotiated contracts not exempt under these rules are subject to CAS. Contracts covered by CAS may fall under either full or modified coverage, with the criteria for each detailed in 48 CFR 9903.201-2. This section serves as a gateway to more detailed provisions on CAS applicability, types of coverage, solicitation provisions, contract clauses, waivers, findings, and agency responsibilities, all of which are addressed in subsequent sections of Subpart 30.2.
Key Rules
- CAS Exemption Determination
- Contractors must refer to 48 CFR 9903.201-1 to determine if a contract or subcontract is exempt from CAS.
- CAS Coverage Requirement
- Negotiated contracts not exempt are subject to CAS, which may be either full or modified coverage as defined in 48 CFR 9903.201-2.
Responsibilities
- Contracting Officers: Must ensure proper determination of CAS applicability and include appropriate provisions and clauses in solicitations and contracts.
- Contractors: Must assess whether their contracts are subject to CAS and comply with the applicable coverage requirements.
- Agencies: Oversee compliance and ensure correct application of CAS rules.
Practical Implications
- This section ensures that only eligible contracts are subject to CAS, preventing unnecessary compliance burdens.
- Contractors must be diligent in reviewing exemption criteria and understanding the distinction between full and modified coverage.
- Failure to properly determine CAS applicability can result in noncompliance, contract disputes, or audit findings.