On September 1, 2026, the Cost Accounting Standards Board (CASB) issued a final rule, effective October 1, 2026, revising when and how Cost Accounting Standards apply to federal contracts. The rule raises CAS coverage thresholds, changes the treatment of indefinite delivery contracts, expands agency waiver authority, and permits CAS exemptions for portions of hybrid contracts. While the changes may reduce compliance burdens for many contractors, questions remain regarding their application to contracts awarded over the past nine months. The final rule has significant implications for contractors’ CAS compliance obligations and contracting strategies going forward.
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