DFARS Part 230: Cost Accounting Standards Administration

In plain English

DFARS Part 230 implements Cost Accounting Standards (CAS) administration for DoD contracts. It covers contract requirements and specifically the process for obtaining a CAS waiver. For contractors, this part explains who can grant waivers and the conditions that must be met, which can affect whether CAS applies to a contract.

Key rules

• The military departments and the Principal Director, DPCAP may grant CAS waivers that meet the conditions in FAR 30.201-5(b)(1).
• They may also grant CAS waivers that meet the conditions in FAR 30.201-5(b)(2) if the cognizant Federal agency official determines that the property or services cannot reasonably be obtained without the waiver, the price is fair and reasonable without CAS, and there are demonstrated benefits to granting the waiver.
• Waiver requests to the Principal Director, DPCAP must follow the procedures in PGI 230.201-5(a)(1).
• The military departments shall not delegate CAS waiver authority below the individual responsible for issuing contracting policy for the department.
• By November 30th each year, the military departments must report to the Office of the Principal Director, DPCAP (Contract Policy) all waivers granted under FAR 30.201-5(a) during the previous fiscal year for contracts, subcontracts, or modifications expected to have a value of $15 million or more.
• The Principal Director, DPCAP will submit a consolidated report to the CAS Board and the congressional defense committees.

Who does what

In practice

• If you are a DoD contractor seeking relief from CAS requirements, a waiver may be possible, but only if the strict conditions in FAR 30.201-5(b)(1) or (b)(2) are met and the waiver is granted by the military departments or the Principal Director, DPCAP.
• For contracts, subcontracts, or modifications expected to be $15 million or more, the military departments must report any granted waivers annually, which adds transparency and oversight.
• The waiver authority cannot be delegated below the department's contracting policy head, so requests must go through proper channels as described in PGI 230.201-5(a)(1).

Common pitfalls

• Assuming that a CAS waiver is automatic or easy to obtain; the regulation requires specific determinations, such as that the price is fair and reasonable without CAS and that there are demonstrated benefits.
• Submitting a waiver request without following the procedures in PGI 230.201-5(a)(1), which could delay or invalidate the request.
• Overlooking the annual reporting requirement for waivers on contracts expected to be $15 million or more, which could lead to compliance issues for the military department.

Written by AI from this part's codified text (2026-10-04); cited sections are checked against the part. A guide, not legal advice: the regulation text, the solicitation and your contract rule.