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ORANDUM FOR REGIONAL DIRECTORS, DCAA DIRECTOR, FIELD DETACHMENT, DCAA SUBJECT: Audit Guidance on Revised FAR Part 30, Cost Accounting Standards Administration, and Related Contract Clause and Solicitation Provisions SUMMARY This memorandum provides audit guidance on the recent amendments to FAR Part 30, Cost Accounting Standards (CAS) Administration, and the related contract clause at FAR 52.230-6, Administration of Cost Accounting Standards, as well as the new solicitation provision added at FA.
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BELVOIR FAQ
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Standard cost accounting uses ratios called efficiencies that compare the labor and materials actually used to produce a good with those that the same goods would have required under "standard" conditions. As long as actual and standard conditions are similar, few problems arise.
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Cost accounting practice, as used in this part, means any disclosed or established accounting method or technique which is used for allocation of cost to cost objectives, assignment of cost to cost accounting periods, or measurement of cost.
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A change in cost accounting practice occurs when. there is a change in the method or technique for: 1. Determining whether a cost is directly or indirectly. Cost Accounting Changes and Cost Impact Statements - CMS cms.gov https://.cms.gov › Medicare-Contracting › Downloads cms.gov https://.cms.gov › Medicare-Contracting › Downloads
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CAS is applicable to negotiated contracts greater than $2M, unless the contract meets one of the following CAS exemptions: Contract is less than $7.5M and the contractor is not currently performing under any CAS Covered contracts of $7.5M or greater at the time of award. Contract is awarded to a small business.
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Modified, rather, than full, CAS coverage may be applied to a covered contract of less than $50 million awarded to a business unit that received less than $50 million in net CAS-covered awards in the immediately preceding cost accounting period.
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