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When does the government require CAS compliance?

A contract can either be exempt from CAS coverage or CAS coverage applies and a disclosure statement must be submitted.  Reasons that the government may exempt a contract or subcontract from CAS coverage include size of the business unit; dollar amount of contract award; small business concern; acquisition of commercial items; method of pricing or foreign contractor or performance.

 

A disclosure statement is required for any business unit that receives a contract in excess of $50M or for any company which, together with its segments, received net CAS-covered contract awards exceeding $50M in the contractor’s previous accounting period.  The government reviews the disclosure statement for adequacy and compliance.

 

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