Subpart 30.6
CAS Administration
FAR Subpart 30.6 establishes the procedures and responsibilities for administering Cost Accounting Standards (CAS) in federal contracts, ensuring consistent compliance and fair cost practices.
Overview
FAR Subpart 30.6, "CAS Administration," provides detailed procedures and responsibilities for administering Cost Accounting Standards (CAS) requirements in federal contracts. This subpart outlines the roles of contracting officers, the process for handling changes to cost accounting practices, addressing noncompliance, determining materiality, resolving cost impacts, and managing CAS requirements in subcontracts. Its purpose is to ensure consistent application and enforcement of CAS rules, protect the government’s interests, and provide clear guidance for both contractors and government officials throughout the contract lifecycle.
Key Rules
- Responsibility (30.601)
- Assigns primary responsibility for CAS administration to contracting officers and outlines their duties.
- Materiality (30.602)
- Defines how to determine whether a cost accounting change or noncompliance is material to contract costs.
- Changes to Disclosed or Established Cost Accounting Practices (30.603, 30.604)
- Details procedures for processing and approving changes to a contractor’s cost accounting practices.
- Processing Noncompliances (30.605)
- Provides steps for identifying, reporting, and resolving instances where contractors do not comply with CAS.
- Resolving Cost Impacts (30.606)
- Explains how to calculate and settle the financial impact of CAS changes or noncompliance.
- Subcontract Administration (30.607)
- Addresses the flow-down of CAS requirements and administration at the subcontract level.
Responsibilities
- Contracting Officers: Oversee CAS compliance, process changes, resolve noncompliance, and ensure proper subcontract administration.
- Contractors: Disclose and maintain consistent cost accounting practices, report changes, and address noncompliance.
- Agencies: Provide oversight and support to ensure CAS requirements are met.
Practical Implications
- Ensures government contracts are priced and administered fairly and consistently.
- Requires contractors to maintain transparency and consistency in cost accounting.
- Noncompliance or improper changes can result in financial adjustments, penalties, or contract disputes.