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Cost Accounting Standards (CAS) versus Cost Principles

publication date: Feb 7, 2010
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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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