Overview
FAR 30.101 establishes the statutory requirement for specific contractors to comply with Cost Accounting Standards (CAS) and mandates the written disclosure and consistent application of their cost accounting practices. It formally incorporates the Cost Accounting Standards Board (CASB) regulations (48 CFR Chapter 99) into the Federal Acquisition Regulation.
Key Rules
- Statutory Authority: Compliance is rooted in 41 U.S.C. chapter 15, which governs the establishment and enforcement of CAS.
- Disclosure Requirement: Covered contractors and subcontractors must disclose their cost accounting practices in writing.
- Consistency Mandate: Contractors are legally required to follow their disclosed practices consistently across all covered contracts.
- Regulatory Incorporation: Any reference to FAR Part 30 inherently includes all CASB regulations and standards found in 48 CFR Chapter 99.
Practical Implications
- Contractors must maintain rigorous accounting systems that can be formally audited for consistency against their written Disclosure Statements.
- Failure to adhere to disclosed practices or CAS requirements can lead to contract price adjustments and interest charges for any increased costs paid by the government.