[Code of Federal Regulations]

[Title 48, Volume 7]

[Revised as of October 1, 2005]

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

[CITE: 48CFR9903.201-5]



[Page 275-276]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

     CHAPTER 99--COST ACCOUNTING STANDARDS BOARD, OFFICE OF FEDERAL 

           PROCUREMENT POLICY, OFFICE OF MANAGEMENT AND BUDGET

 

PART 9903_CONTRACT COVERAGE--Table of Contents

 

                 Subpart 9903.2_CAS Program Requirements

 

Sec. 9903.201-5  Waiver



    (a) The head of an executive agency may waive the applicability of 

the Cost Accounting Standards for a contract or subcontract with a value 

of less than $15 million, if that official determines, in writing, that 

the business unit of the contractor or subcontractor that will perform 

the work--

    (1) Is primarily engaged in the sale of commercial items; and

    (2) Would not otherwise be subject to the Cost Accounting Standards 

under this Chapter.

    (b) The head of an executive agency may waive the applicability of 

the Cost Accounting Standards for a contract or subcontract under 

exceptional circumstances when necessary to meet the needs of the 

agency. A determination to waive the applicability of the Cost 

Accounting Standards by the agency head shall be set forth in writing, 

and shall include a statement of the circumstances justifying the 

waiver.

    (c) The head of an executive agency may not delegate the authority 

under paragraphs (a) and (b) of this section, to any official below the 

senior policymaking level in the agency.

    (d) The head of each executive agency shall report the waivers 

granted under paragraphs (a) and (b) of this section, for that agency, 

to the Cost Accounting Standards Board, on an annual basis, not later 

than 90 days after the close of the Government's fiscal year.

    (e) Upon request of an agency head or his designee, the Cost 

Accounting Standards Board may waive all or any part of the requirements 

of 9903.201-4(a), Cost Accounting Standards, or 9903.201-4(c), 

Disclosure and Consistency of Cost Accounting Practices, with respect to 

a contract subject to the Cost Accounting Standards. Any request for a 

waiver shall describe the proposed contract or subcontract for which the 

waiver is sought and shall contain--

    (1) An unequivocal statement that the proposed contractor or 

subcontractor refuses to accept a contract containing all or a specified 

part of a CAS clause and the specific reason for that refusal;

    (2) A statement as to whether the proposed contractor or 

subcontractor has accepted any prime contract or subcontract containing 

a CAS clause;

    (3) The amount of the proposed award and the sum of all awards by 

the agency requesting the waiver to the proposed contractor or 

subcontractor in each of the preceding 3 years;

    (4) A statement that no other source is available to satisfy the 

agency's needs on a timely basis;



[[Page 276]]



    (5) A statement of alternative methods considered for fulfilling the 

need and the agency's reasons for rejecting them;

    (6) A statement of steps being taken by the agency to establish 

other sources of supply for future contracts for the products or 

services for which a waiver is being requested; and

    (7) Any other information that may be useful in evaluating the 

request.

    (f) Except as provided by the Cost Accounting Standards Board, the 

authority in paragraph (e) of this section shall not be delegated.



[65 FR 36770, June 9, 2000]