DATE: July 19, 2000

FROM: Barry McVay, CPCM

SUBJECT: Department of Defense; Public Meetings on Cost Accounting Standards (CAS) Administration and CAS Streamlining

SOURCE: Federal Register; July 19, 2000, Vol. 65, No. 139, pages 44710 and 44765

AGENCIES: Department of Defense (DOD)

ACTION: Notice of Public Meetings

SYNOPSIS: The Office of the Director of Defense Procurement, in conjunction with the National Contract Management Association (NCMA), is sponsoring two public meetings on CAS: (1) on August 2, to discuss the April 18, 2000, proposed Federal Acquisition Regulation (FAR) rule on CAS administration; and (2) on August 3, to discuss potential areas for streamlining the CAS.

EDITOR'S NOTE: The CAS are 19 standards which apply to large contractors performing large contracts. The CAS are in Chapter 99 of Title 48 of the Code of Federal Regulations (CFR) and are included as an appendix to the paper-version of the FAR for information purposes. They are available on the Internet at http://www.arnet.gov/far/97/html/appendix.html.

For more on the proposed FAR rule on CAS administration, see the April 18, 2000, FEDERAL CONTRACTS DISPATCH "Federal Acquisition Regulation (FAR); Cost Accounting Standards Administration."

For more on a recent Cost Accounting Standards Board (CASB) change to its regulations regarding cost accounting practices, see the June 14, 2000, FEDERAL CONTRACTS DISPATCH "Cost Accounting Standards Board; Changes In Cost Accounting Practices."

DATES: The meeting to discuss the proposed FAR rule will be held on August 2, 2000, from 9 a.m. until 1 p.m. The meeting to discuss potential CAS streamlining will be held on August 3, 2000, from 9 a.m. until 1:00 p.m. Upon identification of the key issues, subsequent public meetings will be held to hear views of interested parties regarding specific proposed language and recommendations. The dates and times of those meetings will be published by the Defense Office of Cost, Pricing, and Finance at http://www.acq.osd.mil/dp/cpf.

ADDRESSES: The meetings will be held at the NCMA, 1912 Woodford Drive, Vienna, VA 22182. Directions may be found on the Internet at http://www.acq.osd.mil/dp/cpf.

FOR FURTHER INFORMATION CONTACT: Mr. David Capitano, Office of Cost, Pricing, and Finance, 703-695-7249, fax: 703-693-9616, e-mail: capitadj@acq.osd.mil.

SUPPLEMENTAL INFORMATION: On April 18, 2000, a proposed rule was published that would amend FAR Subpart 30.6, CAS Administration, to more clearly and completely explain the cost-impact process that the government and contractor must follow when a contractor makes a compliant change to a cost accounting practice or follows a noncompliant practice.

The Director of Defense Procurement would like to hear the views of interested parties on what they believe to be the key issues pertaining to the proposed rule, so the Director will be holding a meeting on August 2 to hear the views of interested parties. The following is a list of possible issues that has been prepared by DOD and posted at http://www.acq.osd.mil/dp/cpf:

In addition, the Director will be holding an additional meeting on August 3 to hear the views of interested parties regarding any CAS or parts of CAS that present streamlining opportunities (elimination, revision, and/or amendment) in light of changes that have occurred since the standards were promulgated in the 1970s, including the evolution of Generally Accepted Accounting Principles (GAAP), the advent of acquisition reform, and experience gained from implementation. The following is the list of some possible streamlining areas that has been prepared by DOD and posted at http://www.acq.osd.mil/dp/cpf:

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

Copyright 2000 by Panoptic Enterprises. All Rights Reserved.

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