Federal Acquisition Regulation Part 30

Federal Acquisition Regulation Part 30
Title	Federal Acquisition Regulation Part 30
Jurisdiction	United States
Subject	Cost Accounting and Pricing
Enacted by	Federal Acquisition Regulation Council
Related legislation	Truth in Negotiations Act; Contract Disputes Act; Defense Production Act

Federal Acquisition Regulation Part 30 Federal Acquisition Regulation Part 30 establishes policies and procedures for cost accounting, allowable costs, and contractor accounting practices in United States procurement. It interfaces with statutes, executive orders, and administrative frameworks that include auditing, recordkeeping, and adjudication mechanisms affecting procurement across agencies such as the Department of Defense, Department of Energy, and General Services Administration. The part informs contract negotiation, cost reimbursement, and contract administration for suppliers serving federal agencies including contractors to NASA, the National Institutes of Health, and the Department of Veterans Affairs.

Overview

Part 30 codifies cost principles and accounting standards used when agencies award cost-reimbursement, time-and-materials, and other non-fixed-price contracts under statutes such as the Defense Production Act and the Truth in Negotiations Act. It aligns with policies from the Office of Management and Budget, the Government Accountability Office, and the Department of Justice related to procurement integrity and auditability. The framework supports oversight bodies including the Inspector General offices of the Department of Defense, the Department of Energy, and the Department of Homeland Security as well as tribunals such as the Civilian Board of Contract Appeals and the United States Court of Federal Claims.

Scope and Applicability

Part 30 applies to contractors and subcontractors performing under contracts funded by agencies including the National Aeronautics and Space Administration, Department of the Interior, Department of Health and Human Services, and Department of Commerce. It is invoked in connection with contract types governed by the Federal Acquisition Regulation and interfaces with statutory regimes such as the Contract Disputes Act of 1978 and provisions from the Armed Services Board of Contract Appeals. Applicability extends to commercial item determinations involving agencies like the Small Business Administration and procurement activities overseen by the General Services Administration.

Cost Principles and Allowable Costs

Part 30 specifies which costs are allowable, allocable, and reasonable for reimbursement, echoing criteria found in statutes like the Truth in Negotiations Act and guidance from the Office of Management and Budget. It distinguishes direct costs and indirect costs in contexts familiar to entities such as Lockheed Martin, Boeing, and Raytheon Technologies when contracting with agencies like the Department of Defense or NASA. The part addresses fringe benefits, pension costs, and depreciation rules comparable to standards applied by the Internal Revenue Service and accounting bodies such as the Financial Accounting Standards Board. Disallowances and cost adjustments may be subject to dispute resolution mechanisms involving the Government Accountability Office or the United States Court of Federal Claims.

Accounting Standards and Cost Accounting Standards (CAS)

Part 30 incorporates requirements for contractor accounting systems and references the Cost Accounting Standards promulgated under the jurisdiction of the Cost Accounting Standards Board and influenced by legislation such as the Defense Production Act amendments. It affects contractors ranging from large primes affiliated with Northrop Grumman and General Dynamics to smaller firms certified by the Small Business Administration. The rules interface with professional standards from the American Institute of Certified Public Accountants and reporting expectations encountered in audits performed under standards influenced by the Government Accountability Office and the Office of Inspector General.

Audit, Recordkeeping, and Contractor Responsibilities

Part 30 establishes obligations for maintaining records and permitting audits by organizations such as the Defense Contract Audit Agency, the Inspector General offices of federal agencies, and independent auditors engaged by the General Services Administration. Contractors must preserve documentation consistent with statutes like the Contract Disputes Act of 1978 and respond to requests from oversight entities including the Government Accountability Office and the Department of Justice in civil or criminal matters. Responsibilities extend to internal controls, certifications similar to those used by firms audited under standards of the Public Company Accounting Oversight Board, and cooperation with investigative processes conducted by agencies such as the Federal Bureau of Investigation when procurement integrity issues arise.

Administration and Compliance Procedures

Administratively, Part 30 procedures are implemented by contracting officers within agencies such as the Department of Defense, Department of Energy, and the General Services Administration and involve coordination with legal counsel from the Department of Justice and audit organizations including the Defense Contract Audit Agency. Noncompliance may trigger contract remedies, adjustments, or referral to adjudicative bodies such as the Civilian Board of Contract Appeals and the United States Court of Federal Claims. Training and compliance programs often reference curricula and policies from institutions like the Federal Acquisition Institute and the National Contract Management Association.

Historical Development and Amendments

Part 30 evolved alongside procurement reforms in the post-World War II era, shaped by landmark events and statutes including the Defense Production Act, the Truth in Negotiations Act, and amendments influenced by reports from the Government Accountability Office and investigations by various Inspectors General. Major revisions reflect administrative priorities set by the Office of Management and Budget and legislative changes enacted by the United States Congress, responding to high-profile contract disputes and audits involving corporations such as Bechtel and Halliburton. Ongoing amendments continue to respond to policy shifts driven by administrations from the Executive Office of the President, regulatory guidance from the Federal Acquisition Regulatory Council, and oversight determinations from the United States Court of Appeals for the Federal Circuit.

Category:United States federal procurement law