FAR 52.230-1—Cost Accounting Standards Notices and Certification.
Plain-English Summary
FAR 52.230-1, Cost Accounting Standards Notices and Certification, is the solicitation provision that tells offerors when Cost Accounting Standards (CAS) may apply to a resulting contract and what the offeror must certify before award. It covers the CAS applicability notice, the requirement to submit a Disclosure Statement when CAS-covered work is expected, the warning that disclosure does not itself approve a practice, and the certification options for concurrent submission, prior submission, monetary exemption, and interim exemption. It also addresses special treatment for small businesses, foreign governments, and educational institutions, and it explains when the provision is used to determine whether the contract will be subject to full CAS coverage or modified coverage under the Disclosure and Consistency of Cost Accounting Practices clause. In practice, this provision is a gatekeeper: it helps the contracting officer determine whether the offeror is CAS-covered, exempt, or eligible for modified coverage, and it forces the offeror to make a formal, supportable representation about its status. Because the certifications can affect pricing, compliance obligations, and post-award administration, contractors must review their corporate structure, prior awards, and cost accounting period carefully before signing.
Key Rules
CAS notice applies selectively
The provision is used to notify offerors that contracts above the lower CAS threshold may be subject to CAS unless an exemption applies. It does not apply to small businesses or foreign governments, and educational institutions only face Part II when the contemplated contract will be subject to full or modified CAS coverage.
Disclosure Statement may be required
If the offeror submits a proposal that would result in a CAS-covered contract, the offeror must submit a Disclosure Statement as a condition of contracting unless one has already been filed for the practices used in pricing the proposal. The statement must be on the proper CASB form and filed with the cognizant ACO or Federal official and the cognizant auditor, as applicable.
Disclosure is not approval
The provision expressly warns that merely disclosing a practice does not make it proper, approved, or agreed to for pricing proposals or accumulating and reporting cost data. Separate regulatory authority or agreement is still required before a disclosed practice can be treated as acceptable.
Concurrent submission certification
An offeror may certify that it is submitting the Disclosure Statement with the offer and identify where the original and copies were filed. The offeror must also certify that the estimating practices used in the proposal are consistent with the disclosed cost accounting practices.
Previously submitted disclosure certification
If the required Disclosure Statement was already filed, the offeror may certify the prior submission instead of resubmitting the statement. The offeror must identify the filing date and the cognizant office where it was submitted, and again certify consistency between proposal estimating practices and the disclosed practices.
Monetary exemption certification
An offeror may certify that it, together with all divisions, subsidiaries, and affiliates under common control, did not receive $50 million or more in net awards of negotiated prime contracts and subcontracts subject to CAS in the immediately preceding cost accounting period. If that status changes before award, the offeror must immediately notify the contracting officer.
Interim exemption certification
An offeror that first exceeded the monetary exemption in the immediately preceding cost accounting period may certify that it is not yet required to submit a Disclosure Statement under the CAS rules. If award is not made within 90 days after the end of that period, the offeror must promptly submit a revised certificate showing that a completed Disclosure Statement has been filed or is being filed, as appropriate.
Modified coverage election
Part II allows an eligible offeror to claim exemption from the full CAS clause and instead be subject to the Disclosure and Consistency of Cost Accounting Practices clause. The offeror must affirmatively check the box and certify eligibility under the modified coverage rules.
Responsibilities
Contracting Officer
Include the provision when prescribed, use the offeror’s certifications to determine whether CAS applies, and ensure the correct clause coverage is placed in the resulting contract. The contracting officer must also receive notice if the offeror’s exemption status changes before award.
Offeror/Contractor
Review each part of the provision, determine whether CAS applies, submit or confirm submission of any required Disclosure Statement, and certify the correct status. The offeror must ensure its proposal estimating practices are consistent with disclosed practices and must promptly update the contracting officer if its exemption status changes.
Cognizant Administrative Contracting Officer or Federal Official
Receive the Disclosure Statement when required and maintain cognizance over the contractor’s CAS disclosure and administration matters. This official is the filing point for the original and one copy of the Disclosure Statement, as applicable.
Cognizant Federal Auditor
Receive a copy of the Disclosure Statement when required and use it in audit and compliance review of the contractor’s CAS practices.
Educational Institution Offeror
Determine whether Part II applies based on whether the contemplated contract will be subject to full or modified CAS coverage, and complete the applicable certification only when the rule requires it.
Small Business or Foreign Government Offeror
Recognize that this notice does not apply and that the CAS notice/certification requirements in this provision are not triggered by the provision itself.
Practical Implications
This provision is often the first formal CAS screening point in a procurement, so offerors should verify corporate affiliations, prior CAS-covered awards, and the correct cost accounting period before certifying.
A common pitfall is assuming that filing a Disclosure Statement means the government has approved the practice; it does not, and unsupported practices can still create pricing or compliance problems.
Another frequent error is misapplying the $50 million monetary exemption by looking only at the prime contractor’s awards instead of the total awards to the offeror plus divisions, subsidiaries, and affiliates under common control.
Offerors claiming the interim exemption must track the 90-day deadline closely; if award is delayed beyond that window, the certification must be updated and a completed Disclosure Statement must be pursued.
Contracting officers should not treat a checked box as a mere formality; the certification affects whether the contract is subject to full CAS coverage, modified coverage, or an exemption, which can materially affect administration and audit risk.
Official Regulatory Text
As prescribed in 30.201-3 (a), insert the following provision: Cost Accounting Standards Notices and Certification (Jun 2020) Note: This notice does not apply to small businesses or foreign governments. This notice is in three parts, identified by Roman numerals I through III. Offerors shall examine each part and provide the requested information in order to determine Cost Accounting Standards (CAS) requirements applicable to any resultant contract. If the offeror is an educational institution, Part II does not apply unless the contemplated contract will be subject to full or modified CAS coverage pursuant to 48 CFR 9903.201-2(c)(5) or 9903.201-2(c)(6), respectively. I. Disclosure Statement-Cost Accounting Practices and Certification (a) Any contract in excess of the lower CAS threshold specified in Federal Acquisition Regulation (FAR) 30.201-4(b) resulting from this solicitation will be subject to the requirements of the Cost Accounting Standards Board ( 48 CFR chapter 99 ), except for those contracts which are exempt as specified in 48 CFR 9903.201-1. (b) Any offeror submitting a proposal which, if accepted, will result in a contract subject to the requirements of 48 CFR chapter 99 must, as a condition of contracting, submit a Disclosure Statement as required by 48 CFR 9903.202 . When required, the Disclosure Statement must be submitted as a part of the offeror’s proposal under this solicitation unless the offeror has already submitted a Disclosure Statement disclosing the practices used in connection with the pricing of this proposal. If an applicable Disclosure Statement has already been submitted, the offeror may satisfy the requirement for submission by providing the information requested in paragraph (c) of Part I of this provision. Caution: In the absence of specific regulations or agreement, a practice disclosed in a Disclosure Statement shall not, by virtue of such disclosure, be deemed to be a proper, approved, or agreed-to practice for pricing proposals or accumulating and reporting contract performance cost data. (c) Check the appropriate box below: (1) □ Certificate of Concurrent Submission of Disclosure Statement . The offeror hereby certifies that, as a part of the offer, copies of the Disclosure Statement have been submitted as follows: (i) Original and one copy to the cognizant Administrative Contracting Officer (ACO) or cognizant Federal agency official authorized to act in that capacity (Federal official), as applicable; and (ii) One copy to the cognizant Federal auditor. (Disclosure must be on Form No. CASB DS-1 or CASB DS-2, as applicable. Forms may be obtained from the cognizant ACO or Federal official.) Date of Disclosure Statement: _________________________ Name and Address of Cognizant ACO or Federal Official Where Filed: _______________________________________ The offeror further certifies that the practices used in estimating costs in pricing this proposal are consistent with the cost accounting practices disclosed in the Disclosure Statement. (2) □ Certificate of Previously Submitted Disclosure Statement . The offeror hereby certifies that the required Disclosure Statement was filed as follows: Date of Disclosure Statement: _________________________ Name and Address of Cognizant ACO or Federal Official Where Filed: _______________________________________ The offeror further certifies that the practices used in estimating costs in pricing this proposal are consistent with the cost accounting practices disclosed in the applicable Disclosure Statement. (3) □ Certificate of Monetary Exemption . The offeror hereby certifies that the offeror, together with all divisions, subsidiaries, and affiliates under common control, did not receive net awards of negotiated prime contracts and subcontracts subject to CAS totaling $50 million or more in the cost accounting period immediately preceding the period in which this proposal was submitted. The offeror further certifies that if such status changes before an award resulting from this proposal, the offeror will advise the Contracting Officer immediately. (4) □ Certificate of Interim Exemption . The offeror hereby certifies that (i) the offeror first exceeded the monetary exemption for disclosure, as defined in (3) of this subsection, in the cost accounting period immediately preceding the period in which this offer was submitted and (ii) in accordance with 48 CFR 9903.202-1 , the offeror is not yet required to submit a Disclosure Statement. The offeror further certifies that if an award resulting from this proposal has not been made within 90 days after the end of that period, the offeror will immediately submit a revised certificate to the Contracting Officer, in the form specified under paragraph (c)(1) or (c)(2) of PartI of this provision, as appropriate, to verify submission of a completed Disclosure Statement. Caution : Offerors currently required to disclose because they were awarded a CAS-covered prime contract or subcontract of $50 million or more in the current cost accounting period may not claim this exemption (4). Further, the exemption applies only in connection with proposals submitted before expiration of the 90-day period following the cost accounting period in which the monetary exemption was exceeded. II. Cost Accounting Standards-Eligibility for Modified Contract Coverage If the offeror is eligible to use the modified provisions of 48 CFR 9903.201-2(b) and elects to do so, the offeror shall indicate by checking the box below. Checking the box below shall mean that the resultant contract is subject to the Disclosure and Consistency of Cost Accounting Practices clause in lieu of the Cost Accounting Standards clause. □ The offeror hereby claims an exemption from the Cost Accounting Standards clause under the provisions of 48 CFR 9903.201-2(b) and certifies that the offeror is eligible for use of the Disclosure and Consistency of Cost Accounting Practices clause because during the cost accounting period immediately preceding the period in which this proposal was submitted, the offeror received less than $50 million in awards of CAS-covered prime contracts and subcontracts. The offeror further certifies that if such status changes before an award resulting from this proposal, the offeror will advise the Contracting Officer immediately. Caution : An offeror may not claim the above eligibility for modified contract coverage if this proposal is expected to result in the award of a CAS-covered contract of $50 million or more or if, during its current cost accounting period, the offeror has been awarded a single CAS-covered prime contract or subcontract of $50 million or more. III. Additional Cost Accounting Standards Applicable to Existing Contracts The offeror shall indicate below whether award of the contemplated contract would, in accordance with paragraph (a)(3) of the Cost Accounting Standards clause, require a change in established cost accounting practices affecting existing contracts and subcontracts. □ Yes □ No (End of provision) Alternate I (Apr 1996) . As prescribed in 30.201-3 (b), add the following paragraph (c)(5) to Part I of the basic provision: □ (5) Certificate of Disclosure Statement Due Date by Educational Institution. If the offeror is an educational institution that, under the transition provisions of 48 CFR 9903.202-1(f) , is or will be required to submit a Disclosure Statement after receipt of this award, the offeror hereby certifies that (check one and complete): □ (i) A Disclosure Statement Filing Due Date of _____________ has been established with the cognizant Federal agency. □ (ii) The Disclosure Statement will be submitted within the 6-month period ending _________ months after receipt of this award. Name and Address of Cognizant ACO or Federal Official Where Disclosure Statement is to be Filed: __________________________________________________ __________________________________________________