[Code of Federal Regulations]

[Title 32, Volume 1]

[Revised as of July 1, 2006]

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

[CITE: 32CFR37.570]



[Page 236-237]

 

                       TITLE 32--NATIONAL DEFENSE

 

              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE

 

PART 37_TECHNOLOGY INVESTMENT AGREEMENTS--Table of Contents

 

                 Subpart E_Pre-Award Business Evaluation

 

Sec.  37.570  What must I do if a CAS-covered participant accounts 

differently for its own and the Federal Government shares of project costs?



    (a) If a participant has Federal procurement contracts that are 

subject to the Cost Accounting Standards (CAS) in part 30 of the Federal 

Acquisition Regulation (FAR) and the associated FAR Appendix (48 CFR 

part 30 and 48 CFR 9903.201-1, respectively), you must alert the 

participant during the pre-award negotiations to the potential for a CAS 

violation, as well as the cognizant administrative contracting officer 

(ACO) for the participant's procurement contracts, if you learn that the 

participant plans to account differently for its own share and the 

Federal Government's share of project costs under the TIA. This may 

arise, for example, if a for-profit firm or other organization subject 

to the FAR cost principles in 48 CFR parts 31 and 231 proposes to 

charge:

    (1) Its share of project costs as independent research and 

development (IR&D) costs to enable recovery of the costs through Federal 

Government procurement contracts, as allowed under the FAR cost 

principles; and

    (2) The Federal Government's share to the project, rather than as 

IR&D costs.

    (b) The reason for alerting the participant and the ACO is that the 

inconsistent charging of the two shares could cause a noncompliance with 

Cost Accounting Standard (CAS) 402. Noncompliance with CAS 402 is a 

potential issue only for a participant that has CAS-covered Federal 

procurement contracts (note that CAS requirements do not apply to a for-

profit participant's TIAs).

    (c) For for-profit participants with CAS-covered procurement 

contracts, the cognizant ACO in most cases will be an individual within 

the Defense Contract Management Agency (DCMA). You can identify a 

cognizant ACO at



[[Page 237]]



the DCMA by querying the contract administration team locator that 

matches contractors with their ACOs (currently on the World Wide Web at 

http://alerts.dcmdw.dcma.mil/support, a site that also can be accessed 

through the DCMA home page at http://www.dcma.mil).