Federal Register #0348-AB85

Final Rule: Increase of Monetary Thresholds and Other Matters Related to Cost Accounting Standards Program Requirements

This final rule from the Office of Federal Procurement Policy (OFPP) at the Office of Management and Budget (OMB) updates Cost Accounting Standards (CAS) program requirements: - Increases monetary thresholds for CAS coverage and Disclosure Statement requirements from $50 million to $100 million - Eliminates certain exemptions, including the exemption at CAS 9903.202-1(c)(ii) - Clarifies how CAS thresholds and exemptions apply to indefinite delivery contracts (IDCs) - Provides mechanisms for determining eligibility for modified coverage for new solicitations and awards - No specific products, OEMs, or vendors are named, as this is a regulatory change - Aims to reduce compliance costs, simplify CAS administration, and lower barriers for nontraditional contractors, new entrants, and mid-size entities

Government Buyer: - Office of Federal Procurement Policy (OFPP), Office of Management and Budget (OMB)

Unique/Notable Requirements: - Regulatory change impacting all federal procurement subject to CAS, not a solicitation for goods or services - Focus on compliance thresholds and administrative simplification

Description

The Office of Management and Budget (OMB), Cost Accounting Standards Board (Board), is publishing a final rule to increase the Cost Accounting Standards (CAS) thresholds and agency waiver authority, and issue clarifications on application of the CAS thresholds and exemptions to indefinite delivery contracts (IDCs). The rule raises the thresholds for full CAS coverage and Disclosure Statement requirements from $50 million to $100 million and eliminates certain exemptions. The changes aim to reduce compliance costs, simplify CAS administration, and lower barriers to entry for nontraditional contractors, new entrants, and mid-size entities. The rule is effective October 1, 2026.

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