FAR Part 30: Cost Accounting Standards Administration

In plain English

FAR Part 30 implements the Cost Accounting Standards (CAS) for negotiated contracts and subcontracts, requiring certain contractors to disclose and consistently follow cost accounting practices. It does not apply to sealed bid contracts or contracts with small businesses. The part covers CAS applicability, disclosure requirements, changes to practices, noncompliance, and cost impact resolution.

Key rules

• CAS applies to negotiated contracts unless exempt; sealed bid contracts and contracts with small businesses are exempt. (30.000, 30.201)
• Contracts subject to CAS must include the appropriate solicitation provisions and contract clauses. (30.201-3, 30.201-4)
• Contractors must disclose their cost accounting practices in writing and follow them consistently. (30.101, 30.202-1)
• The cognizant Federal agency official (CFAO) administers CAS, including determining adequacy of disclosure statements and resolving cost impacts. (30.001, 30.601)
• Contractors may make unilateral changes to cost accounting practices, but the Government will not pay increased costs in the aggregate. (30.603-2)
• The CFAO determines materiality of cost impacts using criteria in 48 CFR 9903.305; immaterial impacts result in no contract adjustments. (30.602)
• The CFAO must coordinate with affected contracting officers before resolving cost impacts of at least $100,000. (30.606)

Who does what

In practice

• If you are a small business, CAS generally does not apply to your contracts, so you may not need to comply with CAS or submit disclosure statements.
• If your negotiated contract is CAS-covered, you must disclose your cost accounting practices and follow them consistently; changes may require notification and could affect contract prices.
• Unilateral changes to your cost accounting practices are allowed, but you cannot recover increased costs from the Government.
• The CFAO oversees CAS administration, so you should coordinate with them for any changes or noncompliance issues.

Common pitfalls

• Assuming CAS applies to all contracts: it does not apply to sealed bid contracts or contracts with small businesses.
• Failing to disclose or consistently follow cost accounting practices: this can lead to noncompliance and cost adjustments.
• Making unilateral changes without understanding that the Government will not pay increased costs.
• Not notifying the contracting officer when a contract award would require a change to an established cost accounting practice.

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.