[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR30.202-7]

[Page 559]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 30_COST ACCOUNTING STANDARDS ADMINISTRATION--Table of Contents
 
                  Subpart 30.2_CAS Program Requirements
 
Sec.  30.202-7  Determinations.

    (a) Adequacy determination. As prescribed by 48 CFR 9903.202-6 (FAR 
appendix), the cognizant auditor shall conduct a review of the 
Disclosure Statement to ascertain whether it is current, accurate, and 
complete and shall report the results to the cognizant ACO, who shall 
determine whether or not it adequately describes the offeror's cost 
accounting practices. If the ACO identifies any areas of inadequacy, the 
ACO shall request a revised Disclosure Statement. If the Disclosure 
Statement is adequate, the ACO shall notify the offeror in writing, with 
copies to the cognizant auditor and contracting officer. The notice of 
adequacy shall state that a disclosed practice shall not, by virtue of 
such disclosure, be considered an approved practice for pricing 
proposals or accumulating and reporting contract performance cost data. 
Generally, the ACO shall furnish the contractor notification of adequacy 
or inadequacy within 30 days after the Disclosure Statement has been 
received by the ACO.
    (b) Compliance determination. After the notification of adequacy, 
the cognizant auditor shall conduct a detailed compliance review to 
ascertain whether or not the disclosed practices comply with Part 31 and 
the CAS and shall advise the ACO of the results. The ACO shall take 
action regarding noncompliance with CAS under FAR 30.602-2. The ACO may 
require a revised Disclosure Statement and adjustment of the prime 
contract price or cost allowance. Noncompliance with part 31 shall be 
processed separately, in accordance with normal administrative 
practices.

[57 FR 39587, Aug. 31, 1992, as amended at 61 FR 18917, Apr. 29, 1996; 
62 FR 40237, July 25, 1997]