854
Federal Acquisition Regulation
(b) In addition, the contracting officer
shall incorporate the cost principles and procedures in Subpart 31.2 and agency supplements by reference in contracts with
commercial organizations as the basis for(1) Determining reimbursable costs under
(i) cost-reimbursement contracts and costreimbursement subcontracts under these
contracts performed by commercial organizations and (ii) the cost-reimbursement portion of time-and-materials contracts except
when material is priced on a basis other than
at cost (see 16.601 (c) (3)) ;
(2) Negotiating indirect cost rates (see
Subpart 42.7) ;
(3) Proposing, negotiating, or determining
costs under terminated contracts (see 49.103
and 49.113);
(4) ~ revision of fixed-price incentive
contra~~ l)ee 16.204 and 16.403);
(5) Price redetermination of price redetermination contracts (see 16.205 and 16.206) ;
and
(6) Pricing changes and other contract
modifications.
[FAC 97-2, 62 FR51224, 9/30/97, effective
10/10/97; Final rule, 72 FR 6881, 2/13/2007,
effective 2/12/2007]
31. 104 Contracts with educational
institutions.
This category includes all contracts and
contract modifications for research and development, training, and other work performed by educational institutions.
(a) The contracting officer shall incorporate the cost principles and procedures in
Subpart 31.3 by reference in cost-reimbursement contracts with educational institutions
as the basis fo (1) Determining reimbursable costs under
the contracts and cost-reimbursement subcontracts thereunder performed by educational institutions;
(2) Negotiating indirect cost rates; and
(3) Settling costs of cost-reimbursement
terminated contracts (see Subpart 49.3 and
49.109-7}.
(b) The cost principles in this subpart are
to be used as a guide in evaluating costs in
FAR 31.104
connection with negotiating fixed-price contracts and termination settlements.
31. 105 Construction and architectengineer contracts.
(a) This category includes all contracts
and contract modifications negotiated on the
basis of cost with organizations other than
educational institutions (see 31.104), State
and local governments (see 31.107), and
nonprofit organizations except those exempted under . OMB Circular A-122 (See
31.108) for construction management or construction, alteration or repair of buildings,
bridges, roads, or other kinds of real property. It also includes architect-engineer contracts related to construction projects. It
does not include contracts for vessels, aircraft, or other kinds of personal property.
(b) Except as otherwise provided in (d)
below, the t ost principles and procedures in
Subpart 31.2 shall be used in the pricing of
contracts and contract modifications in this
category if cost analysis is performed as required by 15.404-l(c).
(c) In addition, the contracting officer
shall incorporate the cost principles and procedures in Subpart 31.2 (as modified by (d)
below) by reference in contracts in this category as the basis for(1) Determining reimbursable costs under
cost-reimbursement contracts, including
cost-reimbursement
subcontracts
thereunder;
(2) Negotiating indirect cost rates;
(3) Proposing, negotiating, or determining
costs under terminated contracts;
(4) Price revision of fixed-price incentive
contracts; and
(5) Pricing changes and other contract
modifications.
(d) Except as otherwise provided in this
paragraph (d), the allowability of costs for
construction and architect-engineer contracts shall be determined in accordance
with Subpart 31.2.
(1) Because of widely varying factors such
as the nature, size, duration, and location of
the construction project, advance agreements as set forth in 31.109, for such items
as home office overhead, partners' compen©2015 CCH Incorporated. All Rights Reserved.
902
Federal Acquisition Regulation
the excess is unallowable under any other
Government contract.
[FAC 974, 63 FR 9048, 2/23/98, effective
4/24/98]
[FAC 97-19, 65 FR 46052, 7/26/2000, effective 9/25/2000; FAC 2001-14, 68 FR
28091, 5/22/2003, effective 6/23/2003]
SUBPART 3-1.3-CONTRACTS WITH
EDUCATIONAL INSTITUTIONS
31.205·49 Goodwill.
Goodwill, an unidentifiable intangible asset, originates under the purchase method of
accounting for a business combination when
the price paid by the acquiring company
exceeds the sum of the identifiable individual assets acquired less liabilities assumed,
based upon their fair values. The excess is
commonly referred to as goodwill. Goodwill
may arise from the acquisition of a company
as a whole or a portion thereof. Any costs for
amortization, expensing, write-off, or writedown of goodwill (however represented) are
unallowable.
[FAC 84-3, 49 FR 26743, 6/29/84, effective
10/1/84]
31.205·50 [Reserved]
[Reserved, FAC 90-39, 61 FR 31612,
6/20/96, effective 8/19/96]
31.205·51 Costs of alcoholic
beverages.
Costs of alcoholic
unallowable.
beverages · are
[FAC 84-15, 51FR12302, 4/9/86, effective
4/7/86]
31.205·52 Asset valuations resulting
from business combinations.
(a) For tangible capital assets, when the
purchase method of accounting for a business combination is used, whether or not the
contract or subcontract is subject to CAS,
the allowable depreciation and cost of money
shall be based on the capitalized asset values
measured and assigned in accordance with
48 CFR 9904.40~50(d), if allocable, reasonable, and not otherwise unallowable.
(b) For intangible capital assets, when the
purchase method of accounting for a business combination is used, allowable amortization and cost of money shall be limited to
the total of the amounts that would have
been allowed had the combination not taken
place.
FAR 31.205-49
31.301 Purpose.
This subpart provides the principles for
determining the cost of research and development, training, and other work performed
by educational institutions under contracts
with the Government.
31.302 General.
Office of Management and Budget (OMB)
Circular No. A-21 Cost PrincipJesJor Educational lnstirutions, Reviseo, provides principles for determining the costs applicable to
research and development, training, and
other work performed by educational institutions under contracts with the Government.
31.303 Requirements.
(a) Contracts that refer to this Subpart
31.3 for determining allowable · costs under
contracts with educational institutions shall
be deemed to refer to, and shall have the
allowability of costs determined by the contracting officer in accordance with, the revision of OMB Circular A-21 in effect on the
date of the contract.
(b) Agencies are not expected to place
additional restrictions on individual items of
cost.
SUBPART 31.4-(RESERVEDJ
SUBPART 31.5-CRESERVEDJ
SUBPART 31.6-CONTRACTS WITH
STATE, LOCAL, AND FEDERALLY
RECOGNIZED INDIAN TRIBAL
GOVERNMENTS
31.601 Purpose.
This subpart provides the principles for
determining allowable cost of contracts and
subcontracts with State, local, and federally
recognized Indian tribal governments.
31.602 General.
Office of Management and Budget (OMB)
Circular No. A-87, Cost Principles for State
and Local Governments, Revised, sets forth
the principles for determining the allowable
©2015 CCH Incorporated. All Rights Reserved.
· .part 30 ( 48 CFR Part 30)
!U]ation
relative to issues raised in the public
=nts. The preambles are printed in
>:ogical order to provide an adminisillstory.
~ 90-12, 57 FR 39587, 8/31/92, effec' 31/92; Final rule, 62 FR 40236,
~7. effective 6/30/97; FAC 97-4, 63 FR
~/ 23/98, effective 4/24/98; FAC
3, 79 FR 24192, 4/29/2014, effective
~1 4 ]
)2 Cost A~cou.,ting Standards
:f Publicati~
·
:es of the CASB Standards and Regu; are printed in title 48 of the Code of
:I Regulations, Chapter 99, and may be
ed by writing the Superintendent of
:ients, U.S. Government Printing Of;\"ashington, DC 20402, or by calling
ashington, DC, ordering desk at (202)
{)0.
,- 90-12, 57 FR 39587, 8/31/92, effec~ 31/ 92; Final rule, 62 FR 40236,
: -;-. effective 6/30/97]
~-SPART 30.2-CAS PROGRAM
REQUIREMENTS
O1 Contract requirements.
e 48 CFR 9903.201-1 (FAR Appendix),
foes the rules for determining whether
posed contract or subcontract is ex:rom CAS. Negotiated contracts not
.pt in accordance with 48 CFR
:.>':11-l(b) shall be subject to CAS. A
:o\·ered contract may be subject to ei:tll or modified coverage. The rules for
::llning whether full or modified cover.pplies are in 48 CFR 9903.201-2 (FAR
adix).
_\C 90-12, 57 FR 39587, 8/31/92, effec::-131/92; FAC 90-38, 61 FR 18914,
'%, effective 4/29/96; Final rule, 62 FR
?. 7/ 25/97, effective 6/30/97]
!O1·1 CAS applicability.
:> 48
CFR 9903.201-1 (FAR Appendix).
.\C 90-38, 61 FR 18914, 4/29/96, effec4/29/96; Final rule, 62 FR 40236,
97, effective 6/30/97]
!O1·2 Types of CAS coverage.
e 48 CFR 9903.201-2 (FAR Appendix) .
2015 CCH Incorporated. All Rights Reserved.
[FAC 90-38, 61 FR 18914, 4/29/96, effective 4/29/96; Final rule, 62 FR 40236,
7/25/97; effective 6/30/97]
~0.201-3
Solicitation provisions.
(a) The contracting officer shall insert the
provision at 52.230-1, Cost Accountiiig Standards Notices and Certification, in solicitations for proposed contracts subject to CAS
as specified in 48 CFR 9903.201 (FAR
Appendix).
(b) If an award to an educational institution is contemplated prior to July 1, 1997, the
contracting officer shall illsert the basic provision set forth .at 52.230-1 With its Alternate
I, unless the contract is to be performed by a
Federally Funded Research and Developmen t Center (FFRDC) (see 48 CFR
9903.201-2(c) (5) (FAR Appendix)), or the
provision at 48 CFR 9903.201-2(c) (6) (FAR
Appendix) applies.
·
(c) Insert the provision at 52.230-7, Proposal Disclosure-Cost Accounting Practice
Changes, in solicitations for contracts subject to CAS as specified in 48 CFR 9903.201
(FAR Appendix) .
·
[FAC 90-38, 61 FR 18914, 4/29/96, effective 4/29/96; Final rule, 62 FR 40236,
7/25/97, effective 6/30/97; FAC 2005-01, 70
FR 11743, 3/9/2005, effective 4/8/2005]
30.201 ·4 Contract clauses.
(a) Cost Accounting Standards.
(1) The contracting officer shall insert the
clause· at FAR 52.230-2, Cost Accounting
Standards, in negotiated contracts, unless
the . contract is exempted (see 48 CFR
9903.201-1 (FAR Appendix)), the contract.is
subject to modified coverage (see 48 CFR
9903.201-2 (FAR Appendix)) , or the clause
prescribed in paragraph (c) of this subsection is used.
831
(1) Insert the clause at FAR 52.230-3, Disclosure and Consistency of Cost Accounting
Practices, in negotiated contracts when the
contract amount is over $700,000, but less
than $50 million, and the offeror certifies it is
eligible for and elects to use modified CAS
coverage (see 48 CFR 9903.201-2 (FAR Appendix)), unless the clause prescribed in
paragraph (c) of this subsection is used.
(2) The clause at FAR 52.230-3 requires
the contractor to comply with 48 CFR
9904.401, 9904.402, 9904.405, and 9904.406
(FAR Appendix) to disclose (if it meets certain requirements) actual cost accounting
practices, and·to follow consistently its established cost accounting practices. .
(c) Disclosure and Consistency of Cost Accounting Practices-Foreign Concerns.
(1) 'The. contracting officer shall insert the
clause at 52.230-4, Disclosure and Consistency of Cost Accounting Practices-Foreign Concerns, in negotiated contracts .with
foreign .concerns, unle's s the contract is' otherwise .exempt from CAS (see 48 CFR
9903.201-1) . Foreign concerns do.not.include
foreign governments or their agents or
instrumentalities.
·
(2) The clause at 52.230-4 requires the
contractor to comply with 48 CFR 9904.401
and 48 CFR 9904.402 to disclose (if it meets
certain requirements) actual cost accounting
practices, and to follow consistently its disclosed and established cost accounting
practices.
(d) Administration of Cost Accounting
Standards.
(l)·Tue contracting officer shall insert the
clause at FAR 52.230-6, Administration of
Cost Accounting Standards, in contracts containing any of the clauses prescribed in
paragraphs (a), (b), (c) , or (e) of this
subsection.
.(2) The clause at FAR 52.230-6 specifies
(2) The clause at FAR 52.230-2 requires
the contractor to comply with all CAS specified in 48 CFR 9904 (FAR Appendix), to
disclose actual cost accounting practices ·(applicable to CAxovered contracts only), and
to follow disclosed and established cost accounting practices consistently.
rules for administering CAS requirements
and procedures to be followed in cases of
failure to comply.
(b) Disclosure and consistency· of cost accounting practices.
(1) The contracting officer shall insert the
elause at FAR 52.230-5, Cost Accounting
(e) Cost Accounting Standards-Educational Institutions.
FAR 30.201-4
832
Federal Acquisition Regulation
Standards-= ducational Institution, in nego(2) The head of the agency determines
tiated contracts awarded to educational insti- that exceptional circumstances exist
tutions; unless the contract is exempted (see whereby a waiver of .CAS is necessary to
48 CFR 9903.201-1 (FAR Appendix)), the meet the needs of the agency. Exceptional
contract is to be performed by an FFRDC circumstances exist only when the benefits
(se.e 48 CFR 9903.201-2(c)(5) (FAR Appen- to be derived from waiving the CAS outdix)), or the provision at 48 CFR weigh the risk associated with the waiver.
9903.201-2(c)(6) (FARAppendix) applies. ~e dete~ation that exceptional circum(2) The clause at 52.230-5 requires the stances exist musteducational institution to comply with all
(i) Be set forth in writing; and
CAS specified in 48 CFR 9905 (FAR Appen(ii) Include a statement of the specific cirdix), to disclose actual cost accounting prac- cumstances that justify granting the waiver.
tices as required by 48 CFR 9903.202-1 (f)
(c) When one of the conditions in para(FAR Appendix), and to follow disclosed and
established cost accounting practices graph (b) of this subsection exists, the request for waiver should ~nclude the
consistently.
following:
[FAC 90-38, 61 FR 18914, 4/29/96, effec(1) The amount of the proposed award.
tive 4/29/96; Final rule, 62 FR 40236,
7/ 25/97, effective 6/30/97; FAC 97-18, 65
(2) A description of the contract or subFR 36014, 6/6/2000, effective 6/6/2000, :fi- contract type (e.g., firm-fixed-price, costnalized without change, FAC 97-22, 66 FR reimbursement) .
2135, 1/10/2001; FAC 2005-27, 73 FR 54011,
(3) Whether the segment(s) that will per54013, 9/17/2008, effective 10/17/2008;
form
the contract or subcontract has CASFAC 2005-36, 74 FR 40467, 8/11/2009, effeccovered
contracts or subcontracts.
tive 8/11/2009; FAC 2005-42, 75 FR 34283,
(4) A description of the item(s) being
6/16/2010, effective 6/16/2010; FAC
2005-50, 76 FR 14570, 3/16/2011, effective procured.
3/ 16/2011; FAC 2005-59, 77 FR 27550,
(5) When the contractor or subcontractor
5/10/2012, effective 5/10/2012]
will not accept the contract or subcontract if
CAS applies, a statement to that effect
30.201-5 Waiver.
(6) Whether certified cost or pricing data
(a) The head of the agencywill be obtained, and if so, a discussiori of
(1) May waive the applicability of CAS for how the data will be used in negotiating the
a particular contract or subcontract under contract or subcontract price.
the conditions listed in paragraph (b) of this
(7) The benefits to the Government of
subsection; and
waiving CAS.
(2) Must not delegate this waiver author(8) The potential risk to the Government
ity to any official in the agency below the
of waiving CAS.
senior contract policymaking level.
(9) The date by which the waiver is
(b) The head of the agency may grant a
waiver when one of the following conditions needed.
exists:
(10) Any other information that may be
(1) The contract or subcontract value is useful in evaluating the request.
less than $15,000,000, and the head of the
(d) When neither of the conditions in paragency determines, in writing, that the seg- agraph (b) of this subsection exists, the
ment of the contractor or subcontractor that waiver request must be prepared in accorwill perform the contract or subcontractdance with 48 CFR 9903.201-5(e) (FAR Ap(!) Is primarily engaged in the sale of pendix) and submitted to the CAS Board.
commercial items; and
(e) Each agency must report any waivers
(ii) Has no contracts or subcontracts that granted under paragraph (a) of this subsecare subject to CAS.
tion to the CAS Board, on a fiscal year basis..
FAR 30.201-5
©2015 CCH Incorporated. All Rights ReserveC..
---·=J
832
Federal Acquisition Regulation
Standards-Educational Institution, in negotiated contracts awarded to educational institutions, unless the contract is exempted (see
48 CFR 9903.201-1 (FAR Appendix)), the
contract is to be perlormed by an FFRDC
(se.e 48 CFR 9903.201-2(c) (5) (FAR Appendix)), or the provision at 48 CFR
9903.201-2(c) (6) (FAR Appendix) applies.
(2) The clause at 52.230..5 requires the
educational institution to comply with all
CAS specified in 48 CFR 9905 (FAR Appendix), to disclose actual cost accounting practices as required by 48 CFR 9903.202-1 (t)
(FAR Appendix) , and to follow disclosed and
established cost accounting practices
consistently.
[FAC 90-38, 61 FR 18914, 4/29/96, effective 4/29/96; Final rule, 62 FR 40236,
7/25/97, effective 6/30/97; FAC 97-18, 65
FR 36014, 6/6/2000, effective 6/6/2000, finalized without change, FAC 97-22, 66 FR
2135, 1/10/2001; FAC 2005-27, 73 FR 54011,
54013, 9/17/2008, effective 10/17/2008;
FAC 2005-36, 74 FR 40467, 8/11/2009, effective 8/11/2009; FAC 2005-42, 75 FR 34283,
6/16/2010, effective 6/16/2010; FAC
2005-50, 76 FR 14570, 3/16/2011, effective
3/16/2011; FAC 2005-59, 77 FR 27550,
5/10/2012, effective 5/10/2012]
30.201-5 Waiver.
(a) The head of the agency(1) May waive the applicability of CAS for
a particular contract or subcontract under
the conditions listed in paragraph (b) of this
subsection; and
(2) Must not delegate this waiver authority to any official in the agency below the
senior contract policymaking level.
(b) The head of the agency may grant a
waiver when one of the following conditions
exists:
(1) The contract or subcontract value is
less than $15,000,000, and the head of the
agency determines, in writing, that the segment of the contractor or subcontractor that
will perlorm the contract or subcontract(i) Is primarily engaged in the sale of
commercial items; and
(ii) Has no contracts or subcontracts that
are subject to CAS.
FAR 30.201-5
(2) The head of the agency determines
that exceptional circumstances exist
whereby a waiver of CAS is necessary to
meet the needs of the agency. Exceptional
circumstances exist only when the benefits
to be derived from waiving the CAS outweigh the risk associated with the waiver.
e determination ·that exceptional circumstances exist must(i) Be set forth in writing; and
(ii) Include a statement of the specific circumstances that justify granting the waiver.
(c) When one of the conditions in paragraph (b) of this subsection exists, the request for waiver should include the
following:
(1) The amount of the proposed award.
(2) A description of the contract or subcontract type (e.g., firm-fixed-price, costreimbursement) .
(3) Whether the segment(s) that will perform the contract or subcontract has CAScovered contracts or subcontracts.
(4) A description of the item(s) being
procured.
(5) When the contractor or subcontractor
will not accept the contract or subcontract if
CAS applies, a statement to that effect
(6) Whether certified cost or pricing data
will be obtained, and if so, a discussion of
how the data will be used in negotiating the
contract or subcontract price.
(7) The benefits to the Government of
waiving CAS.
(8) The potential risk to the Government
of waiving CAS.
(9) The date by which the waiver is
needed.
(10) Any other information that may be
useful in evaluating the request.
(d) When neither of the conditions in paragraph (b) of this subsection exists, the
waiver request must be prepared in accordance with 48 CFR 9903.201-5(e) (FAR Appendix) and submitted to the CAS Board.
(e) Each agency must report any waivers
granted under paragraph (a) of this subsection to the CAS Board, on a fiscal year basi·
©2015 CCH Incorporated. All Rights Reserve<L
1
1680
Federal Acquisition Regulation
52.230-5 Cost Accounting
Standards-Educational Institution.
As prescribed in 30.201-4(e), insert the
following clause:
COST ACCOUNTING STANDARDS. EDUCATIONAL INSTITUTION (MAY 2014)
(a) Unless the contract is exempt under
48 CFR 9903.201-1 and 9903.201-2, the provisions of 48 CFR Part 9903 are incorporated
herein by reference and the Contractor, in
connection with this contract, shall(1) (GAS-covered contracts only). If a business unit of an educational institution required to submit a Disclosure Statement,
disclose in writing the Contractor's cost accounting practices as required by 48 CFR
9903.202-1 through 9903.202-5, including
methods of distinguishing direct costs from
indirect costs and the basis used for accumulating and allocating indirect costs. The practices disclosed for this contract shall be the
same as the practices currently disclosed
and applied on all other contracts and subcontracts being performed by the Contractor
and which contain a Cost Accounting Standards (CAS) clause. If the Contractor has
notified the Contracting Officer that the Disclosure Statement contains trade secrets,
and commercial or financial information
which is privileged and confidential, the Disclosure Statement shall be protected and
shall not be released outside of the
Government.
(2) Follow consistently the Contractor's
cost accounting practices in accumulating
and reporting contract performance cost
data concerning this contract. If any change
in cost- accounting practices is made for the
purposes of any contract or subcontract subject to CAS requirements, the change must
be applied prospectively to this contract and
the Disclosure Statement, if required, must
be amended accordingly. If an accounting
principle change mandated under Office of
Management and Budget (OMB) Circular
A-21, Cost Principles for Educational Institutions, requires that a change in the Contractor's cost accounting practices be made after
the date of this contract award, the change
must be applied prospectively to this contract and the Disclosure Statement, if re-
FAR 52.230-5
quired, must be amended accordingly. If the
contract price or cost allowance of this contract is affected by such changes, adjustment
shall be made in accordance with subparagraph (a) (4) .or (a) (5) of this clause, as
appropriate.
(3) Comply with all CAS, including any
modifications and interpretations indicated
thereto contained in 48 CFR Part 9905 in
effect on the date of award of this contract
.or, if the Contractor has submitted certified
cost or pricing data, on the date of final
agreement on price as shown on the Contractor's signed certificate of current cost or
pricing data. The Contractor shall also comply with any CAS (or modifications to CAS)
which hereafter become applicable to a contract- or subcontract of the Contractor. Such
compliance shall be required prospectively
from the date. of applicability to ~chcontract or subcontract.
(4) (i) Agree to an equitable adjustme t as
provided in the Changes clause of this contract if the contract cost is affected by a
change which, pursuant to subparagraph
(a) (3) of this clause, the Contractor is required to make to the Contractor's established cost accounting practices.
(ii) Negotiate with the Contracting Officer
to determine the terms and conditions under
which a change may be made to a cost accounting practice, other than a change made
under other provisions of subparagraph
(a) (4) of this clause; provided that no agreement may be made under this provision that
will increase costs paid by the United States.
(iii) When the parties agree to a change to
a cost accounting practice, other than a
change under subdivision (a) (4) (i) or
(a) (4) (iv) of this clause, negotiate an equitable adjustment as provided in the Changes
clause of this contract.
(iv) Agree to an equitable adjustment as
provided in the Changes clause of this contract, if the contract cost is materially affected by an OMB Circular A-21 accounting
principle amendment which, on becoming
effective after the date of contract award,
requires the Contractor to make a change to
the Contractor's established cost accounting
practices.
©2015 CCH Incorporated. All Rights Reserved.
Part 52 ( 48 CFR Part 52)
1681
·on
sl be amended accordingly. If the
!
.ce or cost allowance of this con~~ted by such changes'. adjustment
made in accordance with subparaor (a)(5) of this clause, as
.1
tn .
mply with all CAS, _inclu~in? any
dons and interpretations mdicat~d
oontairted in 48 CFR P~ 9905 m
the date of award of this contract
: Contractor has submitted certified
.oricing data, on the date of final
on price as shown on the Consigned certificate of current cost or
i ata. The Contractor shall also comanv CAS (or modifications to CAS)
.ere~er become applicable to a con-ubcontract of the Contractor. Such
~ce shall be required prospectively
.e date of applicability to such consubcontract.
Agree to an equitable adjustment as
-d in the Changes clause of this con. the contract cost is affected by a
· which, pursuant to subpara~aph
of this clause, the Contractor ·is reto make to the Contractor's estabcost accounting practices.
:nt
-egotiate with the Contra~~ng Officer
·nnine the terms and conditions unde:a change may be made to a cost acng practice, other than a change made
other provisions of subparagraph
of this clause; provided that no agreemay be made under this pr?vision tha:
crease costs paid by the Umted States.
When the parties agree to a change o
.t accounting practice, other ~an a
::re under subdivision (a)(4) (i) or
~(iv) of this clause, negotiate an equita:l.justment as provided in the Changt-5
e of this contract.
) Agree to an equitable adjustment 25ded in the Changes clause of this conif the contract cost is materially aid by an OMB Circular A-21 accoun~~
:iple amendment which, on becomm:tive after the date of contract aware...
ires the Contractor to make a change tc
::ontractor's established cost accounting
tices.
l2015 CCH Incorporated. All Rights ReserveC.
(5) Agree to an adjustment of the contract 9903.201-2 is subject to other types of CAS
price or cost allowance, as appropriate, if the coverage, the substance of the applicable
Contractor or a subcontractor fails to comply clause set forth in 48 CFR 9903.201-4 shall
with an applicable Cost Accounting Stan- be inserted;
dard, or to follow any cost accounting prac(2) this requirement shall apply only to
tice consistently and such failure results in negotiated subcontracts in excess of
any increased costs paid by the United $700,000; and
States. Such adjustment shall provide for re(3) The requirement shall not apply to
covery of the increased costs to the United
States, together with interest thereon com- negotiated subcontracts otherwise exempt
puted at the annual rate established under from the requirement to include a CAS
section 6621 of the Internal Revenue Code of clause as specified in 48 CFR 9903.201-1.
1986 (26 U.S.C. 6621) for such period, from
(End of clause)
the time the payment by the United States
[FAC 90-38, 61 FR 18914, 4/29/96, effecwas made to the time the adjustment is eftive
4/29/96; FAC 97-4, 63 FR 9048, 2/23/98,
fected. In no case shall the Government recover costs greater than the increased cost effective 4/24/98; FAC 2005-27, 73 FR 53994,
to the Government, in the aggregate, on-the 9/17 /2008, effective 10/17 /2008; FAC
relevant contracts subject to the price adjust- 2005-36, 74 FR 40467, 8/11/2009, effective
ment, unless the Contractor made a change 8/11/2009; FAC 2005-45, 75 1 FR 53135,
in its cost accounting practices of which it 8/30/2010, effective \10/1?2010; FAC
was aware or should have been aware at the 2005-59, 77 FR 27550, 5/1612012, effective
time of price negotiations and which it failed 5/10/2012; FAC 2005-73, 79 FR 24192,
4/29/2014, effective 5/29/2014]
to disclose to the Government.
(b) If the parties fail to agree whether the 52.230·6 Administration of Cost
Contractor or a subcontractor has complied Accounting Standards.
with an applicable CAS or a CAS rule or
As prescribed in 30.201-4(d)(l), insert the
regulation in 48 CFR Part 9903, and as to any following clause:
cost adjustment demanded by the United
States, such failure to agree will constitute a ADMINISTRATION OF COST ACCOUNTING
STANDARDS (JUL2010)
dispute under 41 U.S.C. chapter 71, <:;ontract
Disputes.
For the purpose of administering the Cost
(c) The Contractor shall permit any au- Accounting Standards (CAS) requirements
thorized representatives of the Government under this contract, the Contractor shall take
to examine and make copies of any docu- the steps outlined in paragraphs (b) through
ments, papers, or records relating to compli- (i) and (k) through (n) of this clause:
ance with the requirements of this clause.
(a) Definitions. As used in this clause(d) The Contractor sliall include in all ne- A/fected CAS-covered contract or subcontract
gotiated subcontracts which the Contractor means a contract or subcontract subject to
enters into, the substance of this clause, ex- CAS rules and regulations for which a Concept paragraph (b) , and shall require such tractor or subcontractorinclusion in all other subcontracts, of any
(1) Used one cost accounting practice to
tier, including the obligation to comply with estimate costs and a changed cost accountall applicable CAS in effect on the subcon- ing practice to accumulate and report costs
tractor's award date or, if the subcontractor under the contract or subcontract; or
has submitted certified cost or pricing data,
(2) Used a noncompliant practice for puron the date of final agreement on price as
shown on the subcontractor's signed Certifi- poses of estimatlli.g or accumulating and recate of Current Cost or Pricing Data, except porting costs under the· contract or
subcontract.
that(1) If the subcontract is awarded to a business unit which pursuant to 48 CFR
Cognizant Federal agency official (CFAOJ
means the Contracting Officer assigned by
FAR . 52.230-6