Cost Accounting Standards

Cost Accounting Standards. The Contractor shall comply with all applicable Cost Accounting Standards (CAS) promulgated by the Cost Accounting Standards Board (CASB), 48 CFR Chapter 99, and shall follow cost accounting practices that are consistent, adequate, and in accordance with CAS requirements. This includes full CAS coverage requiring compliance with all nineteen (19) standards for contracts subject to 48 CFR 9903.201-2(a), or modified CAS coverage requiring compliance with CAS 401 (Consistency in Estimating, Accumulating, and Reporting Costs), CAS 402 (Consistency in Allocating Costs Incurred for the Same Purpose), CAS 405 (Accounting for Unallowable Costs), and CAS 406 (Cost Accounting Period) for contracts subject to modified coverage under 48 CFR 9903.201-2(b). The Contractor shall submit a Disclosure Statement (DS-1 or DS-2) as required and shall notify the Contracting Officer and the cognizant Federal agency official in writing of any cost accounting practice changes or CAS noncompliances within sixty (60) days. Any failure to comply with CAS requirements may result in contract price adjustments, withholding of payments, or other contractual remedies.