Hello and thank you for joining us for our first seventeen Episodes of Fun with the FAR Season 10!
Our next session will cover: FAR Parts 30 (Cost Accounting Standards Administration), 31 (Contract Cost Principles and Procedures), and 32 (Contract Financing)
As we prepare for our eighteenth episode of Season 10, here are a few FAR Facts for us to think about:
- The Cost Accounting Standards (“CAS”) and the related rules and regulations of the CAS Board can be found at Title 48 CFR Chapter 99 and are included in the FAR via the FAR Appendix. Appendix to the FAR.
- Whether a contract is covered by CAS or exempt is determined at the time of award.
- A list of CAS exemptions is available at 48 C.F.R. 9903.201-1.
- Although it does not happen often, the head of an agency has the authority to waive the applicability for a particular contract or subcontract. FAR 30.201-5(a). Each agency must report to the CAS Board any waivers granted, on a fiscal year basis, not later than 90 days after the close of the Government’s fiscal year. FAR 30.201-5(e).
- A cost will be deemed reimbursable or ”allowable” under a cost reimbursement type contract provided it complies with all of the following 5 requirements:
- Reasonability
- Allocability
- CAS Board standards and/generally accepted accounting principles
- Terms of the contract
- Cost principles at FAR 31.2
FAR 31.201-2.
- The cost allowability rules can be found at FAR 31.2.
- The Government is permitted to make “advanced payments” (i.e., payment made before any performance of work) with certain limitations under a commercial contract (FAR 32.2) and noncommercial contract (FAR 32.4).