FAR 30.201-2—Types of CAS coverage.
Plain-English Summary
FAR 30.201-2 is a cross-reference provision that points readers to the Cost Accounting Standards Board’s rule at 48 CFR 9903.201-2 for the actual definitions and categories of CAS coverage. In practice, this section is about determining which Cost Accounting Standards apply to a particular contract or subcontract, including whether the award is subject to full CAS coverage, modified CAS coverage, or no CAS coverage at all. That determination matters because it drives the contractor’s disclosure, consistency, and compliance obligations, and it affects how the government evaluates pricing, accounting practices, and potential cost impacts. The section is important for both contracting officers and contractors because CAS coverage status can change based on contract type, dollar value, business size, and prior CAS status, and those changes can trigger different solicitation clauses, representations, and post-award administration requirements. Although FAR 30.201-2 itself is only a pointer, it serves as the gateway to the substantive CAS coverage rules that govern when and how the standards apply in federal contracting.
Key Rules
Cross-reference to CAS Board rules
This FAR section does not itself define CAS coverage categories; it directs users to 48 CFR 9903.201-2 for the controlling definitions and coverage framework. The practical rule is that the CAS Board’s regulation, not this FAR text, determines the applicable coverage category.
Coverage category must be determined
Before applying CAS requirements, the parties must identify whether the contract or subcontract falls under full CAS coverage, modified CAS coverage, or an exemption/no coverage category. That classification controls which standards, disclosures, and contract clauses apply.
Coverage depends on award characteristics
CAS applicability is tied to the nature and value of the award and the contractor’s status, rather than being a universal requirement for all federal contracts. Contracting personnel must evaluate the specific award against the CAS rules to determine the correct level of coverage.
Coverage affects compliance obligations
Once a contract is determined to be CAS-covered, the contractor may have to comply with cost accounting practices, disclosure requirements, and consistency rules associated with that coverage level. The coverage determination therefore has direct consequences for pricing, administration, and potential audit review.
Subcontracts may also be affected
The CAS coverage analysis is not limited to prime contracts; certain subcontracts can also be subject to CAS depending on the governing rules. Prime contractors and subcontractors must therefore consider downstream applicability when structuring awards and flowdown requirements.
Responsibilities
Contracting Officer
Determine whether the contemplated award is subject to CAS coverage by applying the governing CAS rules in 48 CFR 9903.201-2 and related provisions. Include the correct CAS clauses and ensure the solicitation and award reflect the proper coverage status.
Contractor
Assess whether the company and the specific contract are subject to full, modified, or no CAS coverage, and maintain accounting practices consistent with the applicable standards. Provide accurate representations, disclosures, and supporting information when required.
Subcontractor
Evaluate whether a subcontract is CAS-covered under the applicable rules and comply with any required standards or flowdown obligations. Coordinate with the prime contractor when coverage status affects pricing, accounting, or disclosure requirements.
Agency
Support contracting personnel with policy guidance, oversight, and audit coordination related to CAS applicability and administration. Ensure internal procedures align with the CAS Board rules incorporated by reference through the FAR.
Practical Implications
The main day-to-day task is coverage screening: before award, someone must confirm whether CAS applies and at what level, because the answer changes the contract clauses and accounting obligations.
A common pitfall is treating CAS as a single yes/no issue; in reality, the distinction between full coverage, modified coverage, and exemption/no coverage is critical and can materially affect compliance.
Another frequent mistake is relying on the FAR text alone; this section is only a pointer, so users must consult 48 CFR 9903.201-2 and related CAS rules for the actual requirements.
Contractors should watch for changes in business status, contract value, or award structure that can alter CAS applicability over time or across related awards.
Contracting officers should ensure the solicitation and award file clearly document the coverage determination, since an incorrect CAS classification can lead to disputes, defective pricing issues, or post-award accounting adjustments.
Official Regulatory Text
See 48 CFR 9903.201-2 .