The determination as to whether a Government contract is CAS-covered (Cost Accounting Standards) is pretty straight-forward. Today we will take a brief look at the requirements for the various levels of CAS coverage.
The first level is full exemption. Small businesses are exempt from CAS. So are negotiated contracts under $650 thousand and negotiated contracts under $7.5 million if the contractor is not performing any other CAS-covered contracts. Contract awards based on adequate price competition, commercial prices, or prices set by law or regulation are also exempt. There are a few other obscure exemptions available.
If a contract does not meet one of the foregoing exemptions, the next determination is whether CAS coverage is full-or modified. The threshold here is $50 million. Contracts in excess of $50 million are automatically covered. Additionally, contracts under $50 million (but more than $650 thousand) are fully covered if, the contractor, in its preceding fiscal year, received more than $50 million in CAS covered awards.
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