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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: June 6, 2000

FROM: Barry McVay, CPCM

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Waiver of Cost Accounting Standards (CAS)

SOURCE: Federal Register, June 6, 2000, Vol. 65, No. 109, page 36034

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is adding DFARS 230.201-5, Waiver, to provide procedures for processing CAS waivers and to clarify which DOD components may grant CAS waivers.

EDITOR'S NOTE: Section 802 of the National Defense Authorization Act for Fiscal Year 2000 (Public Law 106-65), made changes in the applicability requirements for CAS coverage. On February 7, 2000, the Cost Accounting Standards Board (CASB) issued an interim rule implementing the changes effective April 2, 2000. For more on the CASB action, see the February 7, 2000, FEDERAL CONTRACTS DISPATCH "Cost Accounting Standards Board (CASB); Applicability, Thresholds and Waiver of Cost Accounting Standards Coverage".

To implement the CASB changes, the Federal Acquisition Regulation (FAR) is being revised today by Federal Acquisition Circular 97-18. For more on the FAR changes, see today's FEDERAL CONTRACTS DISPATCH "Federal Acquisition Circular (FAC) 97-18, Miscellaneous Amendments."

EFFECTIVE DATE: June 6, 2000.

FOR FURTHER INFORMATION CONTACT: Ms. Sandra Haberlin, Defense Acquisition Regulations Council, OUSD(AT&L)DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-0288; fax: 703-602-0350. Cite DFARS Case 2000-D012 in all correspondence pertaining to this final rule.

SUPPLEMENTAL INFORMATION: Section 802 of the FY2000 National Defense Authorization Act made several changes to CAS applicability, and one of its provisions permits the head of an executive agency to waive the applicability of CAS under certain conditions. The CASB revised its regulations in Title 48 of the Code of Federal Regulations, Section 9903.201-5, Waiver, and FAC 97-18 revised FAR 30.201-5, Waiver, to conform to the CASB action. (EDITOR'S NOTE: The CAS are Chapter 99 of Title 48 of the Code of Federal Regulations, and are included as an appendix to the paper-version of the FAR for information purposes. It is available on the Internet at http://www.arnet.gov/far/97/html/appendix.html.)

To provide procedures for processing CAS waivers, DOD is adding DFARS Subpart 230.2, CAS Program Requirements, which consists of DFARS 230.201-5, Waiver. DFARS 230.201-5 contains the following provisions:

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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