Cost Accounting Standards (CAS) versus Cost Principles
INQUIRY: Are 8(a)'s always exempt from CAS requirements? If we are awarded a subcontract from a prime when the prime contract is billions of dollars, what CAS requirements would we be subject to?
RESPONSE: Cost Account Standards (CAS) are complex, misunderstood, and often used with apprehension by people in the procurement profession.
Generally this is how it goes: Being subject to CAS is not an 8(a) or non 8(a) issue but is dependent on Size Standard of a firm categorized as a small business, as well as other factors. If a small business wins a large contract that now makes them no longer eligible to be considered small under their primary NAICS code, then yes CAS could be applicable.
If a Prime wins a large contract that is subject to CAS, CAS applies to...
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