2026-05513NoticeWallet

Cost Board Plans Meetings to Simplify Gov Contract Rules

Published Date: 3/20/2026

Notice

Summary

The Cost Accounting Standards Board is working hard to update and simplify the rules that companies follow when charging the government. They’re planning to remove some old rules, adjust money thresholds for when rules apply, and align standards with regular accounting practices. These changes aim to cut red tape and save time and money for businesses working on government contracts, with key meetings happening through early 2026.

Analyzed Economic Effects

4 provisions identified: 2 benefits, 0 costs, 2 mixed.

Removing Old CAS Rules

The CAS Board is reviewing proposed rules to eliminate Cost Accounting Standards (CAS) 404, 408, 409, and 411 and may issue a final rule. The Board is also discussing conformance of CAS to Generally Accepted Accounting Principles (GAAP) and the remaining standards CAS 407, 415, and 416 as part of CAS–GAAP harmonization under 41 U.S.C. 1501(c)(2).

Raising CAS Coverage Thresholds

The CAS Board will discuss a proposed rule to increase the regulatory thresholds that trigger full CAS coverage and disclosure requirements, which are currently $50,000,000 (48 CFR 9903.201-2 and 48 CFR 9903.202-1). The Board will also consider how CAS applies to indefinite delivery contracts.

Moving Cost-Impact Rules from FAR to CAS

The CAS Board plans to discuss removing coverage of cost impact of accounting changes from Part 30 of the Federal Acquisition Regulation (FAR) and instead addressing cost impact rules in CAS by rulemaking. The Board will consider clarity around the phrase 'increased costs in the aggregate' as used in 41 U.S.C. 1503(b).

Pension Rules for Extraordinary Events

The CAS Board will discuss an Advance Notice of Proposed Rulemaking (ANPRM) to modify CAS 412 and CAS 413 to reconcile the Pension Protection Act of 2006 (PPA) requirements with CAS adjustments for extraordinary pension events such as curtailment, plan termination, or accounting after the sale or closing of a corporate segment.

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Key Dates

Published Date
3/20/2026

Department and Agencies

Department
Independent Agency
Agency
Management and Budget Office
Federal Procurement Policy Office
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