30.201-5 Waiver
Source: FAR 30.201-5 on acquisition.gov
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.
(a) The head of the agency-
(1) May waive the applicability of CAS for a particular contract or subcontract under the conditions listed in paragraph (b) of this subsection; and
(2) Must not delegate this waiver authority to any official in the agency below the senior contract policymaking level.
(b) The head of the agency may grant a waiver when one of the following conditions exists:
(1) The contract or subcontract value is less than 15 million, and the head of the agency determines, in writing, that the segment of the contractor or subcontractor that will perform the contract or subcontract-
(i) Is primarily engaged in the sale of commercial products or commercial services; and
(ii) Has no contracts or subcontracts that are subject to CAS.
(2) The head of the agency determines that exceptional circumstances exist whereby a waiver of CAS is necessary to meet the needs of the agency. Exceptional circumstances exist only when the benefits to be derived from waiving the CAS outweigh the risk associated with the waiver. The determination that exceptional circumstances exist must-
(i) Be set forth in writing; and
(ii) Include a statement of the specific circumstances that justify granting the waiver.
(c) When one of the conditions in paragraph (b) of this subsection exists, the request for waiver should include the following:
(1) The amount of the proposed award.
(2) A description of the contract or subcontract type (e.g., firm-fixed-price, cost-reimbursement).
(3) Whether the segment(s) that will perform the contract or subcontract has CAS-covered contracts or subcontracts.
(4) A description of the item(s) being procured.
(5) When the contractor or subcontractor will not accept the contract or subcontract if CAS applies, a statement to that effect.
(6) Whether certified cost or pricing data will be obtained, and if so, a discussion of how the data will be used in negotiating the contract or subcontract price.
(7) The benefits to the Government of waiving CAS.
(8) The potential risk to the Government of waiving CAS.
(9) The date by which the waiver is needed.
(10) Any other information that may be useful in evaluating the request.
(d) When neither of the conditions in paragraph (b) of this subsection exists, the waiver request must be prepared in accordance with 48 CFR 9903.201-5(e) and submitted to the CAS Board.
(e) Each agency must report any waivers granted under paragraph (a) of this subsection to the CAS Board, on a fiscal year basis, not later than 90 days after the close of the Government’s fiscal year.