Category:Cost Accounting Standards (CAS)

Overview

The Cost Accounting Standards (CAS) consist of 19 separate standards to related to cost accounting and the allocation of costs. The Cost Principles, FAR 31 relate to the cost accounting related to the allowability of costs.

History

In 1968 Congress asked the General Accounting Office (GAO) to study the feasibility of establishing and applying CAS to provide greater uniformity in cost accounting as a basis for negotiating and administering procurement contracts. The GAO concluded it was feasible to apply standards within the government contracting industry. Congress subsequently established the Cost Accounting Standards Board; CAS Board which instituted the Cost Accounting Standards in 1970. The CAS Board was authorized to

(1) promulgate cost accounting standards designed to achieve uniformity and consistency in the cost accounting principles followed by defense contractors and subcontractors under Federal contracts in excess of $100,000 and

(2) establish regulations to require defense contractors and subcontractors, as a condition of contracting, to disclose in writing their cost accounting practices, to follow the disclosed practices consistently and to comply with promulgated cost accounting standards.

In 1980 after the standards were implemented, Congress decided to dissolve it, as it had fulfilled its mission. It was re-established in 1988.

CAS were designed to achieve uniformity and consistency in the measurement, assignment, and allocation of costs. CAS is not an onerous set of Government rules, regulations, and requirements, but a framework in government contractors can establish their own flexible methodologies within that framework.

The Office of Management and Budget within the Office of Federal Procurement Policy (OFPP) is where administratively the Cost Accounting Standards Board is functionally located. To learn more about the Board, it's members, to obtain meeting minutes, or Disclosure Forms, visit http://www.whitehouse.gov/omb/procurement_casb