[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR30.602]



[Page 580]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 30_COST ACCOUNTING STANDARDS ADMINISTRATION--Table of Contents

 

                     Subpart 30.6_CAS Administration

 

Sec. 30.602  Materiality.



    (a) In determining materiality, the CFAO shall use the criteria in 

48 CFR 9903.305 (FAR Appendix).

    (b) A CFAO determination of materiality--

    (1) May be made before or after a general dollar magnitude proposal 

has been submitted, depending on the particular facts and circumstances; 

and

    (2) Shall be based on adequate documentation.

    (c) When the CFAO determines the cost impact is immaterial, the CFAO 

shall--

    (1) Make no contract adjustments and conclude the cost impact 

process;

    (2) Document the rationale for the determination; and

    (3) In the case of noncompliance issues, inform the contractor 

that--

    (i) The noncompliance should be corrected; and

    (ii) If the noncompliance is not corrected, the Government reserves 

the right to make appropriate contract adjustments should the cost 

impact become material in the future.

    (d) For required, unilateral, and desirable changes, and CAS 

noncompliances, when the amount involved is material, the CFAO shall 

adjust the contract or use another suitable method (see 30.606).