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December 22, 2005



SUBJECT:  Request for Comments - Cost Accounting Standards Board Changes to Acquisition Thresholds; Proposed Rule; Office of Federal Procurement Policy

PROGRAMS: Grants Management

1.  Purpose. To transmit a request for comments on a proposed rule change adjusting for inflation the Cost Accounting Board (CAS) application and full coverage acquisition thresholds.

2.  References. Federal Register, Vol. 70, No. 237, December 12, 2005, pp. 73415-73423 (GSA) and 73423-73426 (OMB); Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 [Pub.L. 108-375, section 807]; 48 CFR 9901 and 9903; Paperwork Reduction Act [Pub.L. 96-511]; Executive Order 12866; Regulatory Flexibility Act of 1980.

3.  Links. This Alert is in the Regional website Resource page at:

Link to the Federal Register attachment - GSA (.pdf)

Link to the Federal Register attachment - OMB (.pdf)

4. Background. Cost accounting standards promulgated by the CAS Board are mandatory for use by Federal agencies, and by contractors and sub-contractors, in estimating, accumulating and reporting costs under Federal contracts, unless specifically exempted. Section 807 of the FY 2005 National Defense Authorization Act provides for adjustment of acquisition-related thresholds every five years.

5. Substance. This Alert may be of interest to fiscal officers of agencies in the employment and training community which have Federal contracts. 

6. Action. Program administrators are request to share this Information Alert with appropriate staff and other agencies, and are invited to comment, on or before February 10, 2006, to the office listed in the Addresses section of the Federal Register attachment.

7. Contact. Questions and comments about the proposed CAS thresholds may be directed to David Capitano on 703.847.7486. Questions or comments about the format of this Alert may be directed to Tom Coyne on 312.596.5435.

8. Expiration Date. February 10, 2006

9. Attachment. Federal Register, Vol. 70, No. 237, December 12, 2005, pp. 73423-73426  

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