30.603
Changes to disclosed or established cost accounting practices
FAR 30.603 requires contractors to properly disclose, justify, and obtain approval for any changes to cost accounting practices to ensure CAS compliance and transparency.
Overview
FAR 30.603 addresses the requirements and procedures for making changes to disclosed or established cost accounting practices under the Cost Accounting Standards (CAS). This section outlines when changes are required, the distinction between unilateral and desirable changes, and the responsibilities of contractors and contracting officers in managing such changes. The regulation ensures that any modifications to cost accounting practices are properly disclosed, justified, and approved to maintain consistency and compliance with CAS requirements.
Key Rules
- Required Changes (30.603-1)
- Contractors must implement changes to cost accounting practices when required by new or modified CAS rules, regulations, or interpretations.
- Unilateral and Desirable Changes (30.603-2)
- Contractors may propose unilateral changes to their cost accounting practices, but these must be reviewed and approved by the contracting officer. Desirable changes, which benefit both the government and contractor, are encouraged but must also follow proper procedures.
Responsibilities
- Contracting Officers: Review, approve, and document changes to cost accounting practices; ensure compliance with CAS; communicate requirements to contractors.
- Contractors: Disclose and justify any changes to cost accounting practices; submit required documentation; implement changes as required by CAS or as approved.
- Agencies: Oversee CAS administration and ensure proper implementation of changes.
Practical Implications
- This section exists to maintain transparency and consistency in cost accounting, preventing manipulation or inconsistency in cost allocation.
- Contractors must be diligent in tracking regulatory changes and in documenting any changes to their accounting practices.
- Failure to comply can result in noncompliance findings, cost disallowances, or contract disputes.