Cost Accounting Standards (CAS) must be applied to awards that are?

Cost Accounting Standards (CAS) are regulations that apply specifically to federal contracts, particularly over a certain threshold. The primary purpose of CAS is to ensure consistency in cost accounting practices among contractors and enable the federal government to obtain a fair price for services rendered.

When an award surpasses $500,000, it falls under the requirements set forth by CAS. This threshold is significant because it reflects the government's intention to apply these detailed standards to larger contracts where the risks and complexities associated with cost accounting are greater.

This requirement ensures that contractors provide a comprehensive and precise breakdown of costs associated with federal contracts, allowing for transparency in how taxpayer money is spent. Consequently, awards below this threshold are typically exempt from these intricate cost accounting requirements.

Understanding CAS and its applicability is crucial for anyone involved in the management of federal funds, as non-compliance can lead to financial discrepancies and potential penalties.