30.201-1
CAS applicability
CAS applicability is determined by a statutory threshold that is periodically adjusted for inflation, and contracting professionals must reference the current amount to ensure compliance.
Overview
FAR 30.201-1 outlines the applicability of the Cost Accounting Standards (CAS) to federal contracts. It directs contracting professionals to 48 CFR 9903.201-1 for detailed rules and clarifies that the threshold for determining whether CAS applies is set by statute (10 U.S.C. 3702(a)(1)(A)), and is subject to periodic inflation adjustments as specified in 41 U.S.C. 1908. This section is crucial for determining when a contract must comply with CAS requirements, which impact cost accounting practices and reporting obligations for contractors.
Key Rules
- Reference to CAS Applicability Rules
- Contracting professionals must consult 48 CFR 9903.201-1 for the full details on CAS applicability.
- CAS Threshold Determination
- The threshold for CAS applicability is tied to a statutory amount, which is periodically adjusted for inflation, ensuring that only contracts above a certain value are subject to CAS.
Responsibilities
- Contracting Officers: Must determine if a contract meets the CAS applicability threshold and ensure compliance with referenced regulations.
- Contractors: Must be aware of the current CAS threshold and comply with CAS requirements if their contract meets or exceeds it.
- Agencies: Should monitor and communicate threshold updates and ensure proper application of CAS rules.
Practical Implications
- This section exists to clarify when CAS applies, helping avoid misapplication or oversight.
- It impacts contract structuring, cost accounting, and compliance planning for both contractors and agencies.
- Common pitfalls include using outdated thresholds or failing to check for inflation adjustments.