Title 48 – FEDERAL ACQUISITION REGULATIONS SYSTEM Chapter 99 – COST ACCOUNTING STANDARDS BOARD, OFFICE OF FEDERAL Subchapter B. 48 CFR, Pt TITLE FEDERAL ACQUISITION REGULATIONS SYSTEM AND COST ACCOUNTING STANDARDS PART COST ACCOUNTING. interpretations indicated thereto contained in 48 CFR , in effect on the date of award of this subcontract or, if the Seller has submitted cost or pricing data.

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A change in the contractor’s cost accounting period is a change in accounting practices for which an adjustment in the contract price may be required in accordance with paragraph a 4 ii or iii of the contract clause set out at The determination of the amount paid or a change in the amount paid for a unit of goods and services is not a cost accounting practice.

This requirement shall apply only to negotiated subcontracts in excess of the Truth in Negotiations Act TINA dfr, as cffr for inflation 41 U.


No transfer of these projects and no further work in this area is planned. Consistent application of this Standard will improve the measurement and assignment of costs to cost objectives. This coverage applies to business units that receive negotiated contracts in excess of the Truth in Negotiations Act TINA threshold, as adjusted for inflation 41 U. The appropriate method of depreciation should be selected as follows:.

Hours of operation, number of operations performed, number of units produced, or number of miles traveled. It does require that unallowable costs be given appropriate consideration in any cost accounting determinations governing the content of allocation bases used for distributing indirect costs to cost objectives. Contractors are cautioned that the determination of the allowability of cost items will remain a responsibility of the contracting officers pursuant to the provisions of the applicable procurement regulations.

Following receipt of the contracting officer’s decision, the contractor must clearly identify the disallowed direct labor and direct material costs in his accounting records and reports covering any subsequent submission which includes such costs. The contractor computes pension cost using the unit credit method. Depreciable spare parts which are required for the operation of such tangible capital assets shall be accounted for over the service life of the assets.

However, the gain to be recognized for contract costing purposes shall be limited to the difference between the original acquisition cost of the asset and its undepreciated balance. Contractor capitalizes the building at its fair value.


The offeror further certifies that the practices used in estimating costs in pricing this proposal are consistent with the cost accounting practices disclosed in the Disclosure Statement. Negotiated contracts awarded to an FFRDC operated by an educational institution are subject to the full or modified CAS coverage prescribed in paragraphs a and b of this subsection.

Forms may be obtained from the cognizant Federal agency cognizant ACO or cognizant Federal agency official authorized to act in that capacity or from the looseleaf version of the Federal Acquisition Regulation.

Modifying his practice so as to comply with the definition of production unit in This Standard is effective as of April 17, The cost accounting practices used by the contractor, however, must be followed consistently and the method used to reallocate such costs, of course, must provide an equitable distribution to all final cost objectives.

Production under standing or unlimited work orders, continuous flow processes and the like, not identified with contracts or customer orders are to be treated as final cost objectives awarded after the date on which a business unit must first allocate its costs in compliance with the requirements of this Standard.

As a result of the merger of operations, the combined segment decides to allocate the cost of the manufacturing overhead pool to all final cost objectives, using a direct labor dollars base.

An employee who terminates after September 30 and before July 1 receives no vacation pay. It typically establishes policy for, and provides guidance to the segments in their operations. Where such gain or loss is not material, the amount may be included in an appropriate indirect cost pool.

It also includes a prospective change to a disclosed or established cost accounting practice when the cognizant Federal agency official determines that the former practice was in compliance with applicable CAS and the change is necessary for the contractor to remain in compliance.

However, this provision shall not preclude revisions to an allocation rate during a cost accounting period based on revised estimates of period totals. The official records of the Board shall be documented with supporting justification for class or category exemptions and individual waivers. The Standard also provides criteria for the allocation of home office expenses received by a segment to the cost objectives of that segment.

The allocation of centralized service functions shall be governed by a hierarchy of preferable allocation techniques which represent beneficial or causal relationships. Company D has no liability for vacation pay at January 1 or at December The Standard does not require such cost identification for purposes which are not relevant to the determination of Government contract cost.


48 CFR Part – COST ACCOUNTING STANDARDS | US Law | LII / Legal Information Institute

The amount of detail required may vary considerably depending on the percentage factors used, the data presented in justification or lack thereof, and the significance of each situation. If the subcontract is awarded to a business unit which pursuant to Internal agency policies and procedures shall provide for the designation of the agency office s or officials responsible for administering CAS under the agency’s CAS-covered contracts at each contractor business unit and the delegation of necessary contracting authority to agency individuals authorized to administer the terms and conditions of CAS-covered contracts, e.

If the other terms of the plan are such that in accordance with this Standard, Company E must recognize its vacation costs on the accrual basis, then in accordance with The Contractor shall also comply with any CAS or modifications to CAS which hereafter become applicable to a contract or subcontract of the Contractor. Thereafter, any covered contract awarded in the same cost accounting period must also be subject to full CAS coverage. The terms include Government-owned contractor-operated GOCO facilities, and joint ventures and subsidiaries domestic and foreign in which the organization has a majority ownership.

On similar assembly lines under similar conditions, the original complement cft small tools was expensed because the complement was replaced annually as a result of loss, pilferage, breakage, and physical wear and tear.

From the data obtained, mortality tables can be constructed to determine average asset life. This waiver authority is not available unless the cognizant Federal agency and the educational institution have established a disclosure statement due date pursuant to a written agreement executed prior to January 1,and award is made prior to 99004 established disclosure statement due date.

Full coverage requires that the business unit comply with all of the CAS specified in part that are in effect on the date of the contract award and with any CAS that become applicable because of later award of a CAS-covered contract.

Costs identified specifically with a contract are direct costs of that contract. This procedure is in compliance with the requirements of this Standard. Contractor B’s department is not a production unit as defined in Unit G does not usually supply such equipment.

The use of alternative forms has been approved for the contractors of the following countries:. Public Law — 41 U.