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    1. Does FAR Appendix 9903.201-1(6) exemption for FFP contracts only apply for commercial items? 2. If a contractor is required to havbe CAS compliant, is it possible to award to them while they are being evaluated by DCAA?


    Question 1 – Yes, 48 CFR §9903.201-1(b) (6) is only applicable to contract for commercial items.  Like not by coincidence, firm-fixed-price contracts, fixed-price contracts with economic price adjustment, time-and-material, or labor-hour are the only contract types allowed by FAR §12.207(a) and (b) for acquisition of commercial items.

    Question 2 – It is possible for award to take place before all possible CAS compliance evaluation by the Government has occurred.  In fact, much of the CAS compliance testing is likely to occur after award of a CAS covered.  However, some CAS compliance may be necessary and maybe be tested prior to CAS covered contract award.   For example, the requirements of CAS 401 (48 CFR §9904.401) include the requirement for the contractor’s practices used in estimating costs in pricing a proposal be consistent with his cost accounting practices used in accumulating and reporting costs. Adherence to the requirements of CAS 401 is determined as of the date of award or in some cases a date prior to award. 

    Another example of a CAS compliance requirement applicable before award is the requirement to submit a CASB Disclosure Statement.  In some circumstances, a CAS Disclosure Statement is required to be submitted and determined adequate before award.  The threshold for this requirement to submit a Disclosure Statement and, if required to be submitted, the due date can be found at 48 CFR §9903.202.  Still, even if a Disclosure Statement is required to be submitted before contract award, the agency head may determine that it is impractical to secure the Disclosure statement before award and grant a waiver to allow the Disclosure Statement submission to be deferred until after award.  

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