CAS Thresholds

Cost Accounting Standards (CAS) applicability and coverage thresholds are governed by the Federal Acquisition Regulation (FAR) Part 30 and statutory updates from the National Defense Authorization Act (NDAA). For contracts awarded on or after June 30, 2026, the baseline contract-level threshold for mandatory CAS application is $35 million, replacing the older trigger contract mechanisms and lower historical limits.

FAR as of 8/12/2026

30.201-4 Contract clauses. (a) Cost accounting standards. (1) The contracting officer shall insert the clause at FAR 52.230-2, Cost Accounting Standards, in negotiated contracts, unless the contract is exempted (see 48 CFR 9903.201-1), the contract is subject to modified coverage (see 48 CFR 9903.201-2), or the clause prescribed in paragraph (c) of this subsection is used. (2) The clause at FAR 52.230-2 requires the contractor to comply with all CAS specified in 48 CFR 9904, to disclose actual cost accounting practices (applicable to CAS-covered contracts only), and to follow disclosed and established cost accounting practices consistently.

(b) Disclosure and consistency of cost accounting practices. (1) Insert the clause at FAR 52.230-3, Disclosure and Consistency of Cost Accounting Practices, in negotiated contracts when the contract amount is over $2.5 million, but less than $50 million, and the offeror certifies it is eligible for and elects to use modified CAS coverage (see 48 CFR 9903.201-2), unless the clause prescribed in paragraph (c) of this subsection is used.

Current CAS Coverage Tiers and Thresholds

Exempt / Below Threshold: Contracts under $35 million are generally exempt.

Modified Coverage ($35M - $99.9M): Triggered by a single award of $35 million or more, requiring compliance with only four specific standards (CAS 401, 402, 405, 406).

Full Coverage ($100M+): Triggered by a single $100 million+ award or over $100 million in total covered awards, requiring compliance with all standards and a Disclosure Statement.