FAR 30.201—Contract requirements.
Plain-English Summary
FAR 30.201 explains the basic contract-level trigger for Cost Accounting Standards (CAS) coverage. It tells contracting personnel and contractors that the first question is whether a proposed contract or subcontract is exempt under the CAS exemption rules in 48 CFR 9903.201-1(b); if it is not exempt, then a negotiated contract is subject to CAS. The section also makes clear that CAS coverage is not one-size-fits-all: a covered contract may fall under either full or modified coverage, depending on the separate rules in 48 CFR 9903.201-2. In practice, this section is the gateway to CAS applicability determinations, so it matters at solicitation review, proposal preparation, subcontract planning, and award. Its purpose is to ensure that parties identify CAS obligations early, before pricing, disclosure, and accounting decisions are finalized.
Key Rules
Check CAS exemptions first
The starting point is whether the proposed contract or subcontract is exempt under 48 CFR 9903.201-1(b). If an exemption applies, CAS does not apply under this section.
Negotiated contracts are covered if not exempt
Negotiated contracts that are not exempt under the CAS exemption rules are subject to CAS. This makes the exemption analysis the key threshold determination.
Coverage may be full or modified
A CAS-covered contract is not automatically subject to the same level of requirements in every case. The contract may be subject to either full or modified CAS coverage.
Use separate rules for coverage level
The rules for deciding whether full or modified coverage applies are not in this section; they are in 48 CFR 9903.201-2. Users must consult that provision to complete the coverage determination.
Responsibilities
Contracting Officer
Determine whether the proposed negotiated contract or subcontract is exempt from CAS under the applicable exemption rules, and if not exempt, identify whether full or modified CAS coverage applies using the separate coverage rules.
Contractor
Assess proposed contracts and subcontracts for CAS applicability, disclose and price in accordance with the applicable coverage level, and ensure accounting practices align with the CAS obligations that attach if the contract is not exempt.
Subcontractor
Evaluate whether a proposed subcontract is exempt or CAS-covered and comply with the applicable CAS coverage level when the subcontract is subject to CAS.
Agency
Support consistent application of CAS applicability rules and ensure acquisition personnel use the exemption and coverage determinations required by the CAS framework.
Practical Implications
This section is the first gate in any CAS analysis: if the exemption determination is wrong, the rest of the pricing and accounting setup may be wrong too.
Contractors should not assume that every negotiated contract is automatically fully covered; the full-versus-modified decision must be made separately.
A common pitfall is stopping after finding that a contract is not exempt and failing to check whether full or modified coverage applies.
Because the rule applies to both contracts and subcontracts, prime contractors need to screen subcontract awards early, not just the prime contract.
In practice, teams should document the exemption analysis and the basis for the coverage level so the file supports the CAS determination if questioned later.
Official Regulatory Text
Title 48 CFR 9903.201-1 describes the rules for determining whether a proposed contract or subcontract is exempt from CAS. Negotiated contracts not exempt in accordance with 48 CFR 9903.201-1(b) shall be subject to CAS. A CAS-covered contract may be subject to either full or modified coverage. The rules for determining whether full or modified coverage applies are in 48 CFR 9903.201-2 .