FAR 30.201-1—CAS applicability.
Plain-English Summary
FAR 30.201-1 addresses when Cost Accounting Standards (CAS) may apply at the contract level and points readers to the detailed CAS applicability rules in 48 CFR 9903.201-1. Its main practical function is to establish the threshold used to make a tentative CAS applicability determination for a contract, rather than to restate the full CAS coverage framework. The section also ties that threshold to the statutory amount in 10 U.S.C. 3702(a)(1)(A), as adjusted for inflation under 41 U.S.C. 1908, which means the dollar trigger can change over time. In practice, this section matters because contracting officers must know when to evaluate a procurement for possible CAS coverage, and contractors must understand when CAS-related certifications, disclosures, or compliance obligations may be triggered. The section is short, but it is important because it connects the FAR to the CAS Board rules and to the inflation-adjusted statutory threshold used for contract-level applicability determinations.
Key Rules
CAS rules are in 9903.201-1
Paragraph (a) directs users to 48 CFR 9903.201-1 for the substantive rules on CAS applicability. FAR 30.201-1 itself does not define all CAS coverage categories; it serves as a cross-reference to the controlling CAS regulation.
Threshold governs tentative applicability
Paragraph (b) states that the contract-level threshold for determining tentative CAS applicability is the amount specified in 10 U.S.C. 3702(a)(1)(A), as adjusted for inflation. This means the initial question is whether the contract amount meets or exceeds the current statutory threshold.
Inflation adjustment applies
The threshold is not fixed permanently; it must be updated in accordance with 41 U.S.C. 1908. Users must rely on the current adjusted dollar amount, not an outdated figure from prior years.
Tentative applicability only
The section speaks to tentative applicability at the contract level, not final CAS coverage by itself. Other CAS rules, exemptions, and contract characteristics still have to be reviewed before concluding that CAS applies.
Responsibilities
Contracting Officer
Determine whether the contract amount reaches the current CAS threshold and, if so, evaluate tentative CAS applicability by consulting 48 CFR 9903.201-1 and related CAS provisions. Ensure the correct inflation-adjusted threshold is used and that the acquisition file reflects the basis for the determination.
Contractor
Assess whether a proposed contract may trigger CAS coverage and be prepared to provide cost accounting information, certifications, or disclosures as required under the CAS rules. Contractors should verify whether the current threshold and any exemptions affect their pricing and accounting obligations.
Agency
Apply the current statutory and regulatory threshold consistently across acquisitions and keep procurement personnel informed of updates to the inflation-adjusted amount. Agencies should ensure internal guidance aligns with the FAR and CAS Board rules.
CAS Board / Regulatory Authorities
Maintain the detailed CAS applicability framework in 48 CFR 9903.201-1 and implement the statutory threshold adjustment mechanism. These authorities define the substantive coverage rules that FAR 30.201-1 incorporates by reference.
Practical Implications
This section is a trigger point, not a full CAS analysis. A contract may meet the dollar threshold and still be exempt or otherwise outside CAS coverage, so contracting officers should not stop at the threshold check.
Using an outdated threshold is a common mistake. Because the amount is inflation-adjusted, personnel should confirm the current figure before making a coverage determination.
The phrase 'tentative applicability' means the threshold starts the analysis, but other factors still matter, including contract type, exemptions, and whether the award is at the contract or subcontract level.
Contractors should watch for threshold changes during proposal preparation and negotiation, especially on large fixed-price or cost-reimbursement awards where CAS issues can affect pricing strategy and accounting system readiness.
Good documentation matters. The file should show the threshold used, the date of the determination, and the regulatory basis so the decision can be defended during audit or review.
Official Regulatory Text
(a) See 48 CFR 9903.201-1 . (b) In accordance with 41 U.S.C. 1502 (b)(1)(B), the threshold for determining the tentative applicability of CAS at the contract level is the amount set forth in 10 U.S.C. 3702(a)(1)(A) , as adjusted for inflation in accordance with 41 U.S.C. 1908 .