Question

Discuss the Cost Accounting Standards Board - FAR Part 30 and its value to Federal Contracting

Answer 1

CAS Board FAR part 30 specifies the policies and procedures for implementing the Cost Accounting Standard Board(CASB) Rules and regulations to negotiated contracts and subcontracts.

Definition- "CAS covered Contract or Subcontract relates to the Cost Accounting rules and regulations with Contractor and Subcontractor."

(CFAO) Cognizant Federal Agency Official refers to the Contracting Officer selected by the Cognizant Federal Agency to control the CAS.

"Desirable Change" means an unilateral change to a Cost Accounting Practices that CAFO finds desirable and not detrimental to the govt.

"Fixed Price Contracts and Subcontracts" defines

• Fixed Price Contracts and Subcontracts are defined at 16.202 and 16.203 except when prices are adjusted according to the actual cost of labour and Material.
• Fixed Price Incentive Contracts and Subcontracts where the price is not adjusted according to actual cost spend.
• Orders issued under indefinite delivery Contracts and Subcontracts where the final payment not depend on the actual cost spend.

Flexible Price Contracts and Subcontracts includes-

• Fixed Price Contracts and Subcontracts.
• Cost reimbursement Subcontracts and Contracts.
• Incentive Contracts and Subcontracts where the price may be based on the actual cost spend.
• Orders issued under Identified Delivery Contracts and Subcontracts where final payment is based on the cost spend.

Non-Compliance means a failure in accumulating, estimating costs to-

• Comply with the Applicable costs.
• Consistently follow disclosed or Cost Accounting Practices.

Required Change means-

• A Change in the Cost Accounting Practices that a Contractor is required to make an order in comply with the Applicable Modifications, Interpretition that consecutively becomes applicable to to the existing CAS covered Contract or subcontract.
• A Prospective Change in the Cost Accounting Practices when the CAFO determines that the formal practice was complaince with the applicable CAS and necessary change for contractor to in complaince.