Waiver
CAS waivers are rare exceptions that require senior agency approval, thorough justification, and annual reporting to the CAS Board.
Overview
FAR 30.201-5 outlines the process and conditions under which the Cost Accounting Standards (CAS) requirements may be waived for a specific contract or subcontract. The authority to grant such waivers is reserved for the head of the agency and cannot be delegated below the senior contract policymaking level. Waivers may be granted if the contract is under $15 million and the contractor segment is primarily engaged in commercial sales with no other CAS-covered contracts, or if exceptional circumstances exist that justify the waiver. All waiver requests must be thoroughly documented, including justification, risk assessment, and relevant contract details. Agencies must report all waivers granted to the CAS Board annually within 90 days after the fiscal year ends.
Key Rules
- Waiver Authority
- Only the head of the agency can grant a CAS waiver, and this authority cannot be delegated below the senior contract policymaking level.
- Conditions for Waiver
- Waivers may be granted for contracts under $15 million with qualifying commercial contractors, or in exceptional circumstances where agency needs outweigh risks.
- Documentation Requirements
- Waiver requests must include detailed information such as contract value, type, contractor CAS status, item description, risk/benefit analysis, and justification.
- Reporting Requirement
- Agencies must report all waivers granted to the CAS Board annually, within 90 days after the fiscal year ends.
Responsibilities
- Contracting Officers: Prepare and submit waiver requests with all required documentation when applicable.
- Contractors: Provide necessary information to support waiver requests and indicate if they will not accept CAS-covered contracts.
- Agencies: Ensure proper authority is exercised, maintain documentation, and report waivers to the CAS Board.
Practical Implications
- This section ensures CAS waivers are rare, justified, and closely monitored to protect government interests.
- Contractors seeking waivers must be prepared to provide detailed information and justification.
- Failure to follow these procedures can result in noncompliance, contract delays, or denial of the waiver request.