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  • Question

    One of the CAS exemptions (48 CFR 9903.201-1(b)) is: "Firm-fixed-price contract/subcontract awarded on the basis of adequate price competition without submission of cost or pricing data." This leads to my two questions. Question 1: Should "cost or pricing data" be interpreted to be only cost or pricing data that is requried to be "certified"? I believe that was the FAR terminology that was used back when this rule was first promulgated (i.e., "cost or pricing data", at that time, was defined as certified cost or pricing data). Question 2; If a contract has mixed type CLINs but is predominantly FFP (and awarded on the basis of adequate price competition without submissiono of cost or pricing data) does that make the entire contract exempt from CAS coverage? Or phrased a different way, is the CAS exemption applied at the CLIN level or at the contract level?


    Answer

    Answer to question one (1): Contractor(s) submit proposals with cost and pricing data that is not certified. Cost and pricing data does not become certified until an agreement has been reached on price between the government and the contractor. The CAS standard is cost and pricing data, not certified cost and pricing data. Question 2: CAS is determined at the contract level not at the CLIN level.

    2. CAS determination of a contract should be done in conjunction with the ACO. If there is no ACO, then with the ACO that would have performed contract administration had the contract been deligated (even though the PCO may be performing contract administration). There are a number of factors that determine whether a contract is CAS covered or not. There is a decision tree that is part of chapter 08 of the DCAA Audit Manual that is utilized in determining whether a contract is CAS covered. Therefore, the PCO should consult with the ACO in the determination of whether a contract is CAS covered. 


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