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  • Question

    I have a question regarding CAS Coverage. Situation: A contractor received a negotiated Task Order/Delivery Order on an IDIQ contract for $600K when the contractor was under Modified CAS coverage. At that time, because the award value was less than $700K it was considered Exempt from CAS Coverage. The contractor in 2012 qualified for Full CAS Coverage. If during 2012 the award on this same Task Order/Delivery Order under the IDIQ was increased to approx $1M does CAS Coverage now apply to this or is it determined by type of coverage at original award? Thanks in advance for your cooperation in this matter! Sharon


    Answer

    CAS applicability is determined by the conditions of the original contract. Modifications made under the terms and conditions of the contract do not affect its status with respect to CAS applicability, unless the modification adds new work (DCAAM 8-103.4).  New work is generally defined as anything that constitutes an out-of-scope change.

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