CAS - Price Adjustments

There are 3 situations that may require price adjustments. They are:

• New or revised CAS requiring Cost Accounting Practice changes,

• Voluntary changes to Cost Accounting Practices,

• Non-Compliance with CAS

New or Revised CAS

Once a covered contract is awarded, a new or revised CAS becomes applicable to a fully covered contractor. That Disclosure Statement applies prospectively to all current fully CAS covered contracts.

Once the new or revised standard is effective, the contractor must submit a description of the accounting change and the impact of the change. A General Dollar Magnitude of the change is due within 60 days of the effective date of the change (or another date as agreed upon). The ACO reviews the change and makes a determination of materiality, adequacy adn compliance. Depending on instructions from the ACO, the contractor may be required to submit a Cost Impact Proposal within 60 days. The Cost impact proposal should identify each fully CAS covered contract and subcontracts.