[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: 48CFR30.603-1]



[Page 580-581]

 

            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. 30.603-1  Required changes.



    (a) General. Offerors shall state whether or not the award of a 

contract would require a change to an established cost accounting 

practice affecting existing contracts and subcontracts (see 52.230-1). 

The contracting officer shall notify the CFAO if the offeror states that 

a change in cost accounting practice would be required.

    (b) CFAO responsibilities. Prior to making an equitable adjustment 

under the applicable paragraph(s) that address a required change at 

52.230-2, Cost Accounting Standards; 52.230-3, Disclosure and 

Consistency of Cost Accounting Practices; or 52.230-5, Cost Accounting 

Standards--yEducational Institution, the CFAO shall determine that--

    (1) The cost accounting practice change is required to comply with a 

CAS, or a modification or interpretation thereof, that subsequently 

became applicable to one or more contracts or subcontracts; or

    (2) The former cost accounting practice was in compliance with 

applicable CAS and the change is necessary to remain in compliance.

    (c) Notice and proposal preparation. (1) When the award of a 

contract would require a change to an established cost accounting 

practice, the provision at 52.230-7, Proposal Disclosure--Cost 

Accounting Practice Changes, requires the offeror to--

    (i) Prepare the contract pricing proposal in response to the 

solicitation using the changed cost accounting practice for the period 

of performance for which the practice will be used; and

    (ii) Submit a description of the changed cost accounting practice to 

the contracting officer and the CFAO as pricing support for the 

proposal.

    (2) When a change is required to remain in compliance (for reasons 

other than a contract award) or to comply with a new or modified 

standard, the clause at 52.230-6, Administration of Cost Accounting 

Standards, requires the contractor to--

    (i) Submit a description of the change to the CFAO not less than 60 

days (or other mutually agreeable date) before implementation of the 

change; and

    (ii) Submit rationale to support any contractor written statement 

that the cost impact of the change is immaterial.

    (d) Equitable adjustments for new or modified standards. (1) 

Required changes made to comply with new or modified standards may 

require equitable adjustments, but only to those contracts awarded 

before the effective date of the new or modified standard (see 52.230-2, 

52.230-3, or 52.230-5).

    (2) When a contractor elects to implement a required change to 

comply with a new or modified standard prior to the applicability date 

of the standard, the CFAO shall administer the change as a unilateral 

change (see 30.603-2). Contractors shall not receive an equitable 

adjustment that will result in increased costs in the aggregate



[[Page 581]]



to the Government prior to the applicability date unless the CFAO 

determines that the unilateral change is a desirable change.