Gov Proposes Matching Cost Rules to Standard Accounting
Published Date: 3/20/2026
Proposed Rule
Summary
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!
Analyzed Economic Effects
4 provisions identified: 3 benefits, 1 costs, 0 mixed.
Large Cut to CAS 407 Rules
The Board proposes to eliminate 12 of the 16 requirements in CAS 407 and remove over 2,000 words of regulatory text, relying on contractors' GAAP disclosures instead. This is meant to reduce duplicative compliance for government contractors and outside auditors if the change is finalized.
Easier Entry for Non‑Traditional Contractors
The Board expects the proposal to reduce barriers to entry for non-traditional contractors and new mid-size entities, which it says should increase competition in federal contracting. The NPRM cites the Senate Armed Services Committee report urging CAS–GAAP conformance to level the playing field.
Some Production‑Unit Rules Stay in Place
Although most CAS 407 content would be removed, the Board proposes to retain limited requirements about accounting for standard costs and variances at the production‑unit level and move them into CAS 418 (e.g., the production unit definition and rules on allocation of variances). Contractors must still account for variances (allocated at least annually) or treat immaterial variances as indirect costs as specified in the proposed 9904.418(h).
Small Businesses Remain Exempt from CAS
The NPRM states that CAS Board rules do not impact small entities because contracts and subcontracts with small business concerns are exempt from all CAS requirements. That exemption continues to shield small businesses from these CAS changes.
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
2026-16680, Submission for OMB Review; Privacy Training
Under the provisions of the Paperwork Reduction Act, the Regulatory Secretariat Division has submitted to OMB a request to review and approve an extension of a previously approved information collection requirement regarding privacy training.
2026-16681, Submission for OMB Review; Prohibition on Contracting With Entities Using Certain Telecommunications and Video Surveillance Services or Equipment
Under the provisions of the Paperwork Reduction Act, the Regulatory Secretariat Division has submitted to OMB a request to review and approve an extension of a previously approved information collection requirement regarding the prohibition on contracting with entities using certain telecommunications and video surveillance services.
2026-16677, Submission for OMB Review; Prospective Subcontractor Requests for Bonds
The government is asking to keep collecting info from subcontractors who want to see payment bonds before working on federal construction projects. This helps protect everyone by making sure payments are secure. If you’re a subcontractor or supplier, you might need to request these bonds soon, and comments on this process are open until September 14, 2026.
2026-16679, Submission for OMB Review; Architect-Engineer Qualifications (SF-330)
The government is asking to keep using a form called SF-330, which architects and engineers fill out to show they’re qualified for big projects over a certain dollar amount. This form helps officials pick the best team for the job. If you’re an architect-engineer firm, keep an eye out—comments on this must be sent by September 14, 2026, but there’s no new cost or big changes coming.
2026-16678, Submission for OMB Review; Contract Financing
The government is asking for approval to keep collecting info from contractors about how they want to get paid during contracts. This affects companies working with the government, who must share details about payment schedules and amounts. Comments are open until September 14, 2026, so now’s the time to speak up if you have thoughts!
2026-16612, Regulatory Agenda
This agenda provides summary descriptions of regulations being developed by the Federal Acquisition Regulatory Council in compliance with Executive Order 12866 "Regulatory Planning and Review, as reaffirmed and amended in Executive Order 13563, "Improving Regulation and Regulatory Review." This agenda is being published to allow interested people an opportunity to participate in the rulemaking process. Additionally, members of the public can track the progress of any open and pending Federal Acquisition Regulation (FAR) rule via the "Open FAR Cases" report, which is publicly available at https://www.acq.osd.mil/dpap/ dars/farcasestatus.html. The Regulatory Secretariat Division has attempted to list all regulations pending at the time of publication, except for minor and routine or repetitive actions; however, unanticipated requirements may result in the issuance of regulations that are not included in this agenda. There is no legal significance to the omission of an item from this listing. Also, the dates shown for the steps of each action are estimated and are not commitments to act on or by the dates shown. Published proposed rules may be reviewed in their entirety at the Government's rulemaking website at https://www.regulations.gov.
Previous / Next Documents
Previous: 2026-05511, Increase of Monetary Thresholds and Other Matters Related to Cost Accounting Standards Program Requirements
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!
Next: 2026-05529, Copyright Office Fees
The Copyright Office is planning to raise some fees for its services because costs have gone up since 2020. These changes will help the Office cover more of its expenses without making it too hard for people to use their services. If you want to share your thoughts, you have until May 4, 2026, to send in comments online.