November 19, 2012

CAS Board Proposes Revision to Commercial Item Exemption for Government Contracts

Arnold & Porter Advisory

On November 19, 2012, the Cost Accounting Standards (CAS) Board issued a proposed rule that would modify the existing exemption applicable to contracts for commercial items.  77 Fed. Reg. 69422 (Nov. 19, 2012).  The current exemption applies to “[f]irm fixed-priced, fixed price with economic price adjustment (provided that price adjustment is not based on actual costs incurred), time-and-materials, and labor hour contracts and subcontracts for the acquisition of commercial items” 48 C.F.R §9903.201(b)(6).  The proposed rule would extend the exemption more broadly to “[c]ontracts or subcontracts for commercial items.”  77 Fed. Reg. at 69426.


Paul E. Pompeo
Paul E. Pompeo
Washington, DC
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