pointed to fill a vacancy serves for the remainder of the term for which 
that member’s predecessor was appointed. 
(c) SENIOR STAFF.—The Administrator, after consultation with the 
Board, may— 
(1) appoint an executive secretary and 2 additional staff members 
without regard to the provisions of title 5 governing appointments in 
the competitive service; and 
(2) pay those employees without regard to the provisions of chapter 
51 and subchapter III of chapter 53 of title 5 relating to classification 
and General Schedule pay rates, except that those employees may not 
receive pay in excess of the maximum rate of basic pay payable under 
section 5376 of title 5. 
(d) OTHER STAFF.—The Administrator may appoint, fix the compensa-
tion of, and remove additional employees of the Board under the applicable 
provisions of title 5. 
(e) DETAILED AND TEMPORARY PERSONNEL.—For service on advisory 
committees and task forces to assist the Board in carrying out its functions 
and responsibilities— 
(1) the Board, with the consent of the head of a Federal agency, 
may use, without reimbursement, personnel of that agency; and 
(2) the Administrator, after consultation with the Board, may pro-
cure temporary and intermittent services of personnel under section 
3109(b) of title 5. 
(f) COMPENSATION.— 
(1) OFFICERS AND EMPLOYEES OF THE GOVERNMENT.—Members of 
the Board who are officers or employees of the Federal Government, 
and officers and employees of other agencies of the Federal Govern-
ment who are used under subsection (e)(1), shall not receive additional 
compensation for services but shall continue to be compensated by the 
employing department or agency of the officer or employee. 
(2) APPOINTEES
FROM
PRIVATE
SECTOR.—Each member of the 
Board appointed from the private sector shall receive compensation at 
a rate not to exceed the daily equivalent of the rate for level IV of the 
Executive Schedule for each day (including travel time) in which the 
member is engaged in the actual performance of duties vested in the 
Board. 
(3) TEMPORARY AND INTERMITTENT PERSONNEL.—An individual 
hired under subsection (e)(2) may receive compensation at a rate fixed 
by the Administrator, but not to exceed the daily equivalent of the rate 
for level V of the Executive Schedule for each day (including travel
time) in which the individual is properly engaged in the actual perform-
ance of duties under this chapter. 
(4) TRAVEL EXPENSES.—While serving away from home or regular 
place of business, Board members and other individuals serving on an 
intermittent basis under this chapter shall be allowed travel expenses 
in accordance with section 5703 of title 5. 
§ 1502. Cost accounting standards 
(a) AUTHORITY.— 
(1) COST ACCOUNTING STANDARDS BOARD.—The Cost Accounting 
Standards Board has exclusive authority to prescribe, amend, and re-
scind cost accounting standards, and interpretations of the standards, 
designed to achieve uniformity and consistency in the cost accounting 
standards governing measurement, assignment, and allocation of costs 
to contracts with the Federal Government. 
(2) ADMINISTRATOR
FOR
FEDERAL
PROCUREMENT
POLICY.—The 
Administrator, after consultation with the Board, shall prescribe rules 
and procedures governing actions of the Board under this chapter. The 
rules and procedures shall require that any action to prescribe, amend, 
or rescind a standard or interpretation be approved by majority vote 
of the Board. 
(b) MANDATORY USE OF STANDARDS.— 
(1) SUBCONTRACT.— 
(A) DEFINITION.—In this paragraph, the term ‘‘subcontract’’ 
includes a transfer of commercial items between divisions, subsidi-
aries, or affiliates of a contractor or subcontractor. 
(B) WHEN STANDARDS ARE TO BE USED.—Cost accounting 
standards prescribed under this chapter are mandatory for use by 
all executive agencies and by contractors and subcontractors in es-
timating, accumulating, and reporting costs in connection with the 
pricing and administration of, and settlement of disputes con-
cerning, all negotiated prime contract and subcontract procure-
ments with the Federal Government in excess of the amount set 
forth in section 2306a(a)(1)(A)(i) of title 10 as the amount is ad-
justed in accordance with applicable requirements of law. 
(C) NONAPPLICATION OF STANDARDS.—Subparagraph (B) does 
not apply to— 
(i) a contract or subcontract for the acquisition of a com-
mercial item; 
(ii) a contract or subcontract where the price negotiated is 
based on a price set by law or regulation;
(iii) a firm, fixed-price contract or subcontract awarded on 
the basis of adequate price competition without submission of 
certified cost or pricing data; or 
(iv) a contract or subcontract with a value of less than 
$7,500,000 if, when the contract or subcontract is entered 
into, the segment of the contractor or subcontractor that will 
perform the work has not been awarded at least one contract 
or subcontract with a value of more than $7,500,000 that is 
covered by the standards. 
(2) EXEMPTIONS AND WAIVERS BY BOARD.—The Board may— 
(A) exempt classes of contractors and subcontractors from the 
requirements of this chapter; and 
(B) establish procedures for the waiver of the requirements of 
this chapter for individual contracts and subcontracts. 
(3) WAIVER BY HEAD OF EXECUTIVE AGENCY.— 
(A) IN GENERAL.—The head of an executive agency may waive 
the applicability of the cost accounting standards for a contract 
or subcontract with a value of less than $15,000,000 if that offi-
cial determines in writing that the segment of the contractor or 
subcontractor that will perform the work— 
(i) is primarily engaged in the sale of commercial items; 
and 
(ii) would not otherwise be subject to the cost accounting 
standards under this section. 
(B) IN EXCEPTIONAL CIRCUMSTANCES.—The head of an execu-
tive agency may waive the applicability of the cost accounting 
standards for a contract or subcontract under exceptional cir-
cumstances when necessary to meet the needs of the agency. A de-
termination to waive the applicability of the standards under this 
subparagraph shall be set forth in writing and shall include a 
statement of the circumstances justifying the waiver. 
(C) RESTRICTION ON DELEGATION OF AUTHORITY.—The head 
of an executive agency may not delegate the authority under sub-
paragraph (A) or (B) to an official in the executive agency below 
the senior policymaking level in the executive agency. 
(D) CONTENTS OF FEDERAL ACQUISITION REGULATION.—The 
Federal Acquisition Regulation shall include— 
(i) criteria for selecting an official to be delegated authority 
to grant waivers under subparagraph (A) or (B); and 
(ii) the specific circumstances under which the waiver may 
be granted.