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FAR and DFARS › DFARS Part 230: Cost Accounting Standards Administration › Subpart 230.2

DFARS 230.201-5 Waiver.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section sets out who may grant waivers from the Cost Accounting Standards (CAS) within the Department of Defense, and the conditions those waivers must meet. It also requires the military departments to report certain waivers annually. It matters because it tells contractors which DoD officials can approve CAS waivers and what must be shown for a waiver to be granted.

Applies to: Military departments and DoD officials involved in granting CAS waivers

What it requires

  • Follow the procedures at PGI 230.201-5(a)(1) when submitting waiver requests to the Principal Director, DPCAP
  • Military departments must not delegate CAS waiver authority below the individual responsible for issuing contracting policy for the department
  • By November 30th each year, 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

Key terms: CAS waivers · FAR 30.201-5(b)(1) · FAR 30.201-5(b)(2) · PGI 230.201-5 · CAS Board

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a)(1)(A) The military departments and the Principal Director, Defense Pricing, Contracting, and Acquisition Policy (DPCAP), Office of the Under Secretary of Defense (Acquisition and Sustainment)—

(1) May grant CAS waivers that meet the conditions in FAR 30.201-5(b)(1); and

(2) May grant CAS waivers that meet the conditions in FAR 30.201-5(b)(2), provided the cognizant Federal agency official granting the waiver determines that—

(i) The property or services cannot reasonably be obtained under the contract, subcontract, or modification, as applicable, without granting the waiver;

(ii) The price can be determined to be fair and reasonable without the application of the Cost Accounting Standards; and

(iii) There are demonstrated benefits to granting the waiver.

(B) Follow the procedures at PGI 230.201-5(a)(1) for submitting waiver requests to the Principal Director, DPCAP.

(2) The military departments shall not delegate CAS waiver authority below the individual responsible for issuing contracting policy for the department.

(e) By November 30th of each year, the military departments shall provide a report to the Office of the Principal Director, DPCAP (Contract Policy) of all waivers granted under FAR 30.201-5(a), during the previous fiscal year, for any contract, subcontract, or modification expected to have a value of $15 million or more. See PGI 230.201-5(e) for format and guidance for the report. The Principal Director, DPCAP, will submit a consolidated report to the CAS Board and the congressional defense committees.

Sections it refers to

← 230.201 Contract requirements.

Rule changes for DFARS Part 230

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 230.201-5 Waiver · SpendQuery