30.201-4
Contract clauses
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.