30.201-4 Contract clauses
Source: FAR 30.201-4 on acquisition.gov
FAR 30.201-4 is the clause-selection rule for CAS: if a negotiated contract is CAS-covered, the contracting officer must include the correct 52.230 clause based on coverage type, contractor status, and contract value, and contractors must disclose and consistently follow their cost accounting practices.
Overview
- FAR 30.201-4 prescribes which Cost Accounting Standards (CAS) clauses must be included in negotiated contracts based on the contractor type, contract value, and level of CAS coverage.
- Its purpose is to ensure the correct clause is used so contractors disclose and consistently apply their cost accounting practices, and so agencies can administer CAS compliance effectively.
Key Rules
- FAR 52.230-2, Cost Accounting Standards
- Insert in negotiated contracts subject to full CAS coverage, unless the contract is exempt, qualifies for modified coverage, or a foreign concern clause applies.
- FAR 52.230-3, Disclosure and Consistency of Cost Accounting Practices
- Insert in negotiated contracts over $2.5 million but less than $50 million when the offeror certifies eligibility for and elects modified CAS coverage.
- FAR 52.230-4, Disclosure and Consistency of Cost Accounting Practices—Foreign Concerns
- Insert in negotiated contracts with foreign concerns unless otherwise exempt from CAS; foreign governments and their instrumentalities are excluded.
- FAR 52.230-5, Cost Accounting Standards—Educational Institution
- Insert in negotiated contracts with educational institutions unless exempt, performed by an FFRDC, or another listed exception applies.
- FAR 52.230-6, Administration of Cost Accounting Standards
- Insert whenever any of the CAS clauses above is included; it governs administration and noncompliance procedures.
Responsibilities
- Contracting Officers: Select and include the correct CAS clause(s) based on contract circumstances and required coverage.
- Contractors: Comply with applicable CAS, disclose required cost accounting practices, and apply those practices consistently.
- Agencies: Administer CAS compliance and address failures to comply under FAR 52.230-6.
Practical Implications
- This section matters because using the wrong CAS clause can create compliance gaps, pricing risk, and audit issues.
- Contractors should confirm whether they are exempt, under modified coverage, a foreign concern, or an educational institution before proposal submission and award.
- A common pitfall is overlooking that CAS administration clause 52.230-6 must accompany any of the prescribed CAS clauses.
(a) Cost accounting standards.
(1) The contracting officer shall insert the clause at FAR 52.230-2, Cost Accounting Standards, in negotiated contracts, unless the contract is exempted (see 48 CFR 9903.201-1), the contract is subject to modified coverage (see 48 CFR 9903.201-2), or the clause prescribed in paragraph (c) of this subsection is used.
(2) The clause at FAR 52.230-2 requires the contractor to comply with all CAS specified in 48 CFR 9904, to disclose actual cost accounting practices (applicable to CAS-covered contracts only), and to follow disclosed and established cost accounting practices consistently.
(b) Disclosure and consistency of cost accounting practices.
(1) Insert the clause at FAR 52.230-3, Disclosure and Consistency of Cost Accounting Practices, in negotiated contracts when the contract amount is over $2.5 million, but less than $50 million, and the offeror certifies it is eligible for and elects to use modified CAS coverage (see 48 CFR 9903.201-2), unless the clause prescribed in paragraph (c) of this subsection is used.
(2) The clause at FAR 52.230-3 requires the contractor to comply with 48 CFR 9904.401, 9904.402, 9904.405, and 9904.406 to disclose (if it meets certain requirements) actual cost accounting practices, and to follow consistently its established cost accounting practices.
(c) Disclosure and Consistency of Cost Accounting Practices-Foreign Concerns.
(1) The contracting officer shall insert the clause at FAR 52.230-4, Disclosure and Consistency of Cost Accounting Practices-Foreign Concerns, in negotiated contracts with foreign concerns, unless the contract is otherwise exempt from CAS (see 48 CFR 9903.201-1). Foreign concerns do not include foreign governments or their agents or instrumentalities.
(2) The clause at 52.230-4 requires the contractor to comply with 48 CFR 9904.401 and 48 CFR 9904.402 to disclose (if it meets certain requirements) actual cost accounting practices, and to follow consistently its disclosed and established cost accounting practices.
(d) Administration of cost accounting standards.
(1) The contracting officer shall insert the clause at FAR 52.230-6, Administration of Cost Accounting Standards, in contracts containing any of the clauses prescribed in paragraphs (a), (b), (c), or (e) of this subsection.
(2) The clause at FAR 52.230-6 specifies rules for administering CAS requirements and procedures to be followed in cases of failure to comply.
(e) Cost accounting standards-educational institutions.
(1) The contracting officer shall insert the clause at FAR 52.230-5, Cost Accounting Standards-Educational Institution, in negotiated contracts awarded to educational institutions, unless the contract is exempted (see 48 CFR 9903.201-1), the contract is to be performed by an FFRDC (see 48 CFR 9903.201-2(c)(5)), or the provision at 48 CFR 9903.201-2(c)(6)applies.
(2) The clause at FAR 52.230-5 requires the educational institution to comply with all CAS specified in 48 CFR 9905, to disclose actual cost accounting practices as required by 48 CFR 9903.202-1(f), and to follow disclosed and established cost accounting practices consistently.