CAS changes recommended

      While Cost Accounting Standards (CAS) in defense contracts generally are a good idea, the implementation of CAS requirements at the Defense Dept. has been burdensome for vendors, including small businesses, according to the DOD Section 809 panel’s recent Volume II report.

      The CAS program has four thresholds. All would need to be adjusted to target vendors more narrowly and to avoid affecting too many vendors unnecessarily, the panel said.

      “The individual issues discussed, taken as a whole, expose CAS program requirements that are out of touch with today’s business practices in the public and private sectors,” the panel recommended. ”CAS program requirements should be reshaped for the future.”

      Recommendations include separating one of the CAS thresholds from the threshold for Certified Cost and Pricing Data requirements. Currently, they are linked automatically.

      The panel also wants to raise the threshold for CAS-covered contracts to $25 million. The threshold for full CAS coverage would be $100 million.

More information: Section 809 panel Vol 2 report: https://bit.ly/2tOblby

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