Higher Limits Mean Fewer Rules for Small Gov Deals
Published Date: 3/20/2026
Proposed Rule
Summary
The government wants to raise the money limits that decide which companies must follow special cost rules when working on federal contracts. This change mainly affects businesses dealing with big government projects, making it easier for smaller contracts to skip some paperwork. If you have thoughts, you’ve got until April 20, 2026, to speak up!
Analyzed Economic Effects
5 provisions identified: 4 benefits, 1 costs, 0 mixed.
Full CAS Threshold Raised to $100M
The rule would raise the regulatory thresholds for full Cost Accounting Standards (CAS) coverage and disclosure statements from $50 million to $100 million. The Board estimates the change would reduce entities subject to full coverage from 773 to 564 while maintaining $1.21 trillion of the dollars currently covered.
Basic CAS Applicability Raised to $35M
The proposal would change the basic statutory CAS applicability threshold from $2.5 million (with a $7.5 million trigger) to a single stated dollar threshold of $35 million and eliminate the $7.5 million trigger contract concept. The Board and OMB estimate this change would reduce CAS-covered business segments by about 60% while retaining over 90% of dollars currently subject to CAS coverage.
Waiver Authority Raised to $100M
The proposed rule raises executive agency head authority to waive CAS from $15 million to $100 million, allowing agency heads to grant CAS waivers for contracts up to $100 million without Board approval. This implements changes made to 41 U.S.C. 1502(b)(3).
CAS Rules Clarified for IDCs
The rule clarifies how CAS exemptions apply to indefinite delivery contracts (IDCs): for multiple-award IDCs, CAS applicability is determined at the individual task or delivery order level using that order's base and all options; for single-award IDCs, applicability is determined at the time of award using the IDC's base and all options (ceiling).
Removal of Small-Segment Disclosure Exemption
The Board proposes eliminating the exemption that allowed a segment not to submit a Disclosure Statement if, during the most recently completed cost accounting period, the segment's CAS-covered awards were less than $10 million and less than 30% of segment sales. The Board says this exemption is no longer necessary given the higher thresholds.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-19160, Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 16, 17, and 35
The government is shaking up how it buys stuff by simplifying key contract rules in parts 16, 17, and 35 of the Federal Acquisition Regulation. This change affects federal agencies and contractors, aiming to cut red tape and save taxpayer money. Comments on the proposed changes are open until October 19, 2026, so get ready to weigh in!
2026-20271, Information Collection; Federal Acquisition Regulation Part 11 Requirements
The government agencies in charge of buying stuff (like DoD, NASA, and GSA) want to keep collecting info under a rule called FAR Part 11 for three more years. They’re asking the public to share thoughts by December 1, 2026, on how to make this info collection easier and more useful. This won’t cost extra money but helps keep government buying smooth and clear.
2026-20270, Information Collection; Presolicitation Notice and Response
The government wants to keep collecting info about presolicitation notices, which help agencies plan buying stuff. They’re asking the public to share thoughts on how useful this info is and how to make it easier to provide. This extension would last three more years, with comments due by December 1, 2026, but no new costs are expected.
2026-20127, Submission for OMB Review; Acquisition 360 Voluntary Survey
The government is asking for approval to keep using the Acquisition 360 Voluntary Survey, which lets companies give feedback on how the government handles contract talks and debriefings. This survey helps agencies improve how they work with vendors before awarding contracts. If you’re a business interested in government contracts, your input matters! Comments on this plan are open until November 2, 2026, and there’s no cost to participate.
2026-20128, Submission for OMB Review; Preaward Survey Forms (Standard Forms 1403, 1404, 1405, 1406, 1407, and 1408)
The government is asking to keep using six preaward survey forms that help check if contractors can do the job before signing a contract. This affects contractors and contracting officers who need to prove financial strength, reliability, and ability to deliver on time. Comments on this request are open until November 2, 2026, with no new costs expected.
2026-20126, Submission for OMB Review; Certain Federal Acquisition Regulation Part 28 Requirements
If you’re a contractor working with the federal government, you’ll want to know that some paperwork rules about bonds and payment protections are up for review and extension. These rules help make sure contractors provide the right guarantees on projects, especially construction ones over $35,000. Comments on these rules are open until November 2, 2026, so get ready to weigh in if this affects you!
Previous / Next Documents
Previous: 2026-05494, Proposed Amendment of Class C Airspace at Raleigh-Durham International Airport, NC; Public Meeting
The FAA wants to change the airspace rules around Raleigh-Durham International Airport to improve local flight safety and operations. If you fly or live near KRDU, this affects you! Join a free virtual meeting on May 6, 2026, to learn more and share your thoughts before June 5, 2026. No costs or fees are involved, just your voice and ideas!
Next: 2026-05512, Conformance of Cost Accounting Standards to Generally Accepted Accounting Principles for CAS 407 Use of Standard Costs for Direct Material and Direct Labor
The government wants to update rules about how companies use standard costs for materials and labor to match regular accounting rules (GAAP). This affects businesses that work with federal contracts and could change how they report costs. Comments on these changes are open until April 20, 2026, so get ready to share your thoughts!