FAR 30.601—Responsibility.
Plain-English Summary
FAR 30.601 assigns responsibility for Cost Accounting Standards (CAS) administration and makes clear who handles CAS matters after award. It covers three main topics: the role of the cognizant federal agency official (CFAO) in administering CAS for contracts and subcontracts within a business unit, the contracting officer’s duty to request CAS administration within 30 days after award of a new CAS-covered contract, and the subcontract-award procedures that apply through the CAS clause at 52.230-6. It also addresses the CFAO’s authority to make CAS-related determinations and findings, including whether a change in cost accounting practice or a noncompliance has occurred and how any resulting cost impacts are resolved. Finally, it requires the CFAO to seek and consider auditor advice as appropriate. In practice, this section is important because it centralizes CAS administration, reduces confusion over who decides CAS issues, and helps ensure timely identification and resolution of accounting practice changes and noncompliances that can affect contract pricing and cost recovery.
Key Rules
CFAO administers CAS matters
The CFAO is responsible for CAS administration for all contracts and subcontracts in a business unit, even if another contracting officer handles other contract administration functions. This means CAS issues are assigned to a single cognizant official for consistency and control.
CFAO makes CAS determinations
The CFAO must make all required CAS-related determinations and findings under subpart 1.7 for CAS-covered contracts and subcontracts. This includes deciding whether a change in cost accounting practice or a noncompliance has occurred.
CFAO resolves cost impacts
If a change or noncompliance is found, the CFAO must determine how any resulting cost impacts will be resolved. This is the decision point for measuring, adjusting, or otherwise settling the financial consequences of the CAS issue.
Awarding CO must request CAS administration
Within 30 days after award of any new CAS-subject contract, the contracting officer who made the award must request the CFAO to perform CAS administration. The rule ensures CAS oversight begins promptly after award.
Subcontract awards follow clause procedures
For subcontract awards, the contractor making the subcontract award must follow the procedures in 52.230-6 paragraphs (l), (m), and (n). This ties subcontract-level CAS administration to the contract clause requirements.
Auditor advice should be considered
In performing CAS administration, the CFAO must request and consider the auditor’s advice as appropriate under 1.602-2. The rule does not make the auditor the decision-maker, but it requires informed CAS administration.
Responsibilities
Cognizant Federal Agency Official (CFAO)
Perform CAS administration for all contracts and subcontracts in the business unit; make all CAS-related required determinations and findings; decide whether a change in cost accounting practice or noncompliance has occurred; determine how resulting cost impacts are resolved; request and consider auditor advice as appropriate.
Contracting Officer
Within 30 days after award of any new CAS-covered contract, request the CFAO to perform administration for CAS matters. The contracting officer must ensure the CAS administration request is made promptly after award.
Contractor awarding a subcontract
For subcontract awards, follow the procedures in FAR 52.230-6 paragraphs (l), (m), and (n) when CAS applies. This means the contractor must handle subcontract-level CAS administration steps required by the clause.
Auditor
Provide advice to the CFAO as appropriate on CAS administration matters. The auditor supports the CFAO’s review and decision-making but does not replace the CFAO’s responsibility.
Practical Implications
CAS administration is centralized, so parties should not assume the local contracting officer will handle CAS issues unless the CFAO is involved.
The 30-day request deadline after award is easy to miss; failing to notify the CFAO promptly can delay CAS administration and later cost-impact resolution.
Contractors awarding subcontracts must know and follow the specific clause procedures in 52.230-6, or they risk noncompliance at the subcontract level.
A key operational issue is distinguishing between a change in cost accounting practice and noncompliance, because the CFAO must make that determination and then address the cost impact.
Auditor input can be important, but it is advisory; contractors and contracting officers should still look to the CFAO for the formal CAS decision and administration actions.
Official Regulatory Text
(a) The CFAO shall perform CAS administration for all contracts and subcontracts in a business unit, even when the contracting officer retains other administration functions. The CFAO shall make all CAS-related required determinations and findings (see subpart 1.7 ) for all CAS-covered contracts and subcontracts, including- (1) Whether a change in cost accounting practice or noncompliance has occurred; and (2) If a change in cost accounting practice or noncompliance has occurred, how any resulting cost impacts are resolved. (b) Within 30 days after the award of any new contract subject to CAS, the contracting officer making the award shall request the CFAO to perform administration for CAS matters (see subpart 42.2 ). For subcontract awards, the contractor awarding the subcontract must follow the procedures at 52.230-6 (l), (m), and (n). (c) In performing CAS administration, the CFAO shall request and consider the advice of the auditor as appropriate (see 1.602-2 ).