Cost Accounting Standards Board Publishes Final Rule Clarifying Exemption

On February 28, 2018, the Cost Accounting Standards (CAS) Board published a final rule revising the exemption from CAS for firm-fixed-price contracts and subcontracts awarded on the basis of adequate price competition without submission of cost and pricing data. The rule clarifies that this exemption applies to firm-fixed-price agreements awarded on the basis of adequate price competition without submission of certified cost or pricing data.

When the exception was originally passed in 2000, the term "cost or pricing data" indicated certified cost or pricing data. However in 2010, a change was made to the FAR that defined the term to include cost or pricing data without certification. This new rule clarifies the intent of the exception. (83 Fed. Reg. 8,634, 02/28/2018).