52.230-5 Cost Accounting StandardsEducational Institution.

As prescribed in 30.201-4(e)(1), insert the following clause:

Cost Accounting Standards-Educational Institution (Jun 2020)

(a) Unless the contract is exempt under 48 CFR 9903.201-1 and 9903.201-2, the provisions of 48

CFR 9903 are incorporated herein by reference and the Contractor, in connection with this contract,

shall-

(1) (CAS-covered Contracts Only). If a business unit of an educational institution (defined as an

institution of higher education in the OMB Uniform Guidance at 2 CFR part 200, subpart A and 20

U.S.C. 1001) is required to submit a Disclosure Statement, disclose in writing the Contractor’s cost

accounting practices as required by 48 CFR 9003.202-1 through 9903.202-5, including methods of

distinguishing direct costs from indirect costs and the basis used for accumulating and allocating

indirect costs. The practices disclosed for this contract shall be the same as the practices currently

disclosed and applied on all other contracts and subcontracts being performed by the Contractor

and which contain a Cost Accounting Standards (CAS) clause. If the Contractor has notified the

Contracting Officer that the Disclosure Statement contains trade secrets, and commercial or

financial information which is privileged and confidential, the Disclosure Statement shall be

protected and shall not be released outside of the Government.

(2) Follow consistently the Contractor’s cost accounting practices in accumulating and reporting

contract performance cost data concerning this contract. If any change in cost accounting practices

is made for the purposes of any contract or subcontract subject to CAS requirements, the change

must be applied prospectively to this contract and the Disclosure Statement, if required, must be

amended accordingly. If an accounting principle change mandated under OMB Uniform Guidance at

2 CFR part 200, subpart E and appendix III, requires that a change in the Contractor’s cost

accounting practices be made after the date of this contract award, the change must be applied

prospectively to this contract and the Disclosure Statement, if required, must be amended

accordingly. If the contract price or cost allowance of this contract is affected by such changes,

adjustment shall be made in accordance with paragraph (a)(4) or (a)(5) of this clause, as

appropriate.

(3) Comply with all CAS, including any modifications and interpretations indicated thereto contained

in 48 CFR 9905 in effect on the date of award of this contract or, if the Contractor has submitted

certified cost or pricing data, on the date of final agreement on price as shown on the Contractor’s

signed certificate of current cost or pricing data. The Contractor shall also comply with any CAS (or

modifications to CAS) which hereafter become applicable to a contract or subcontract of the

Contractor. Such compliance shall be required prospectively from the date of applicability to such

contract or subcontract.

(4)

(i) Agree to an equitable adjustment as provided in the Changes clause of this contract if the

contract cost is affected by a change which, pursuant to paragraph (a)(3) of this clause, the

Contractor is required to make to the Contractor’s established cost accounting practices.
(ii) Negotiate with the Contracting Officer to determine the terms and conditions under which a

change may be made to a cost accounting practice, other than a change made under other

provisions of paragraph (a)(4) of this clause; provided that no agreement may be made under this

provision that will increase costs paid by the United States.

(iii) When the parties agree to a change to a cost accounting practice, other than a change under

subdivision (a)(4)(i) or (a)(4)(iv) of this clause, negotiate an equitable adjustment as provided in the

Changes clause of this contract.

(iv) Agree to an equitable adjustment as provided in the Changes clause of this contract, if the

contract cost is materially affected by an accounting principle amendment required under the OMB

Uniform Guidance at 2 CFR part 200, subpart E and appendix III, which, on becoming effective after

the date of contract award, requires the Contractor to make a change to the Contractor’s established

cost accounting practices.

(5) Agree to an adjustment of the contract price or cost allowance, as appropriate, if the Contractor

or a subcontractor fails to comply with an applicable Cost Accounting Standard, or to follow any cost

accounting practice consistently and such failure results in any increased costs paid by the United

States. Such adjustment shall provide for recovery of the increased costs to the United States,

together with interest thereon computed at the annual rate established under section 6621(a)(2) of

the Internal Revenue Code of 1986 (26 U.S.C.6621(a)(2)) for such period, from the time the payment

by the United States was made to the time the adjustment is effected. In no case shall the

Government recover costs greater than the increased cost to the Government, in the aggregate, on

the relevant contracts subject to the price adjustment, unless the Contractor made a change in its

cost accounting practices of which it was aware or should have been aware at the time of price

negotiations and which it failed to disclose to the Government.

(b) If the parties fail to agree whether the Contractor or a subcontractor has complied with an

applicable CAS or a CAS rule or regulation in 48 CFR 9903 and as to any cost adjustment demanded

by the United States, such failure to agree will constitute a dispute under 41 U.S.C. chapter 71,

Contract Disputes.

(c) The Contractor shall permit any authorized representatives of the Government to examine and

make copies of any documents, papers, or records relating to compliance with the requirements of

this clause.

(d) The Contractor shall include in all negotiated subcontracts which the Contractor enters into, the

substance of this clause, except paragraph (b), and shall require such inclusion in all other

subcontracts, of any tier, including the obligation to comply with all applicable CAS in effect on the

subcontractor’s award date or, if the subcontractor has submitted certified cost or pricing data, on

the date of final agreement on price as shown on the subcontractor’s signed Certificate of Current

Cost or Pricing Data, except that-

(1) If the subcontract is awarded to a business unit which pursuant to 48 CFR 9903.201-2 is subject

to other types of CAS coverage, the substance of the applicable clause set forth in 48 CFR

9903.201-4 shall be inserted;

(2) The requirement in this paragraph (d) shall apply only to negotiated subcontracts in excess of the

lower CAS threshold specified in Federal Acquisition Regulation (FAR) 30.201-4(b) on the date of

subcontract award; and

(3) The requirement shall not apply to negotiated subcontracts otherwise exempt from the
requirement to include a CAS clause as specified in 48 CFR 9903.201-1.

(End of clause)

Parent topic: 52.230 [Reserved]