nizational level not lower than an Assistant Secretary of De-
fense within the Office of the Under Secretary of Defense for 
Acquisition, Technology, and Logistics; or 
(ii) if no official of that agency is assigned by statute with 
the responsibility for acquisition policy for that agency, the 
official designated pursuant to section 1702(c) of this title. 
(B) LIMITATION ON DESIGNATION.—No other official or em-
ployee may be designated to serve on the Council. 
§ 1303. Functions and authority 
(a) FUNCTIONS.— 
(1) ISSUE AND MAINTAIN FEDERAL ACQUISITION REGULATION.— 
Subject to sections 1121, 1122(a) to (c)(1), 1125, 1126, 1130, 1131, 
and 2304 of this title, the Administrator of General Services, the Sec-
retary of Defense, and the Administrator of National Aeronautics and 
Space, pursuant to their respective authorities under part C of this 
subtitle, chapters 4 and 137 of title 10, and the National Aeronautics 
and Space Act of 1958 (42 U.S.C. 2451 et seq.), shall jointly issue and 
maintain in accordance with subsection (d) a single Government-wide 
procurement regulation, to be known as the Federal Acquisition Regu-
lation. 
(2) LIMITATION ON OTHER REGULATIONS.—Other regulations relat-
ing to procurement issued by an executive agency shall be limited to— 
(A) regulations essential to implement Government-wide policies 
and procedures within the agency; and 
(B) additional policies and procedures required to satisfy the 
specific and unique needs of the agency. 
(3) ENSURE
CONSISTENT
REGULATIONS.—The Administrator, in 
consultation with the Council, shall ensure that procurement regula-
tions prescribed by executive agencies are consistent with the Federal 
Acquisition Regulation and in accordance with the policies prescribed 
pursuant to section 1121(b) of this title. 
(4) REQUEST TO REVIEW REGULATION.— 
(A) BASIS FOR REQUEST.—Under procedures the Administrator 
establishes, a person may request the Administrator to review a 
regulation relating to procurement on the basis that the regulation 
is inconsistent with the Federal Acquisition Regulation. 
(B) PERIOD OF REVIEW.—Unless the request is frivolous or 
does not, on its face, state a valid basis for the review, the Admin-
istrator shall complete the review not later than 60 days after re-
ceiving the request. The time for completion of the review may be 
extended if the Administrator determines that an additional period 
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of review is required. The Administrator shall advise the requester 
of the reasons for the extension and the date by which the review 
will be completed. 
(5) WHEN REGULATION IS INCONSISTENT OR NEEDS TO BE IM-
PROVED.—If the Administrator determines that a regulation relating to 
procurement is inconsistent with the Federal Acquisition Regulation or 
that the regulation otherwise should be revised to remove an inconsist-
ency with the policies prescribed under section 1121(b) of this title, the 
Administrator shall rescind or deny the promulgation of the regulation 
or take other action authorized under sections 1121, 1122(a) to (c)(1), 
1125, 1126, 1130, 1131, and 2304 of this title as may be necessary 
to remove the inconsistency. If the Administrator determines that the 
regulation, although not inconsistent with the Federal Acquisition Reg-
ulation or those policies, should be revised to improve compliance with 
the Regulation or policies, the Administrator shall take action author-
ized under sections 1121, 1122(a) to (c)(1), 1125, 1126, 1130, 1131, 
and 2304 as may be necessary and appropriate. 
(6) DECISIONS TO BE IN WRITING AND PUBLICLY AVAILABLE.—The 
decisions of the Administrator shall be in writing and made publicly 
available. 
(b) ADDITIONAL RESPONSIBILITIES OF MEMBERSHIP.— 
(1) IN GENERAL.—Subject to the authority, direction, and control of 
the head of the agency concerned, each official who represents an agen-
cy on the Council pursuant to section 1302(b) of this title shall— 
(A) approve or disapprove all regulations relating to procure-
ment that are proposed for public comment, prescribed in final 
form, or otherwise made effective by that agency before the regula-
tion may be prescribed in final form, or otherwise made effective, 
except that the official may grant an interim approval, without re-
view, for not more than 60 days for a procurement regulation in 
urgent and compelling circumstances; 
(B) carry out the responsibilities of that agency set forth in 
chapter 35 of title 44 for each information collection request that 
relates to procurement rules or regulations; and 
(C) eliminate or reduce— 
(i) any redundant or unnecessary levels of review and ap-
proval in the procurement system of that agency; and 
(ii) redundant or unnecessary procurement regulations 
which are unique to that agency. 
(2) LIMITATION ON DELEGATION.—The authority to review and ap-
prove or disapprove regulations under paragraph (1)(A) may not be 
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delegated to an individual outside the office of the official who rep-
resents the agency on the Council pursuant to section 1302(b) of this 
title. 
(c) GOVERNING POLICIES.—All actions of the Council and of members of 
the Council shall be in accordance with and furtherance of the policies pre-
scribed under section 1121(b) of this title. 
(d) GENERAL AUTHORITY WITH RESPECT TO FEDERAL ACQUISITION 
REGULATION.—Subject to section 1121(d) of this title, the Council shall 
manage, coordinate, control, and monitor the maintenance of, issuance of, 
and changes in, the Federal Acquisition Regulation. 
§ 1304. Contract clauses and certifications 
(a) REPETITIVE NONSTANDARD CONTRACT CLAUSES DISCOURAGED.— 
The Council shall prescribe regulations to discourage the use of a non-
standard contract clause on a repetitive basis. The regulations shall include 
provisions that— 
(1) clearly define what types of contract clauses are to be treated 
as nonstandard clauses; and 
(2) require prior approval for the use of a nonstandard clause on a 
repetitive basis by an official at a level of responsibility above the con-
tracting officer. 
(b) WHEN CERTIFICATION REQUIRED.— 
(1) BY LAW.—A provision of law may not be construed as requiring 
a certification by a contractor or offeror in a procurement made or to 
be made by the Federal Government unless that provision of law spe-
cifically provides that such a certification shall be required. 
(2) IN FEDERAL ACQUISITION REGULATION.—A requirement for a 
certification by a contractor or offeror may not be included in the Fed-
eral Acquisition Regulation unless— 
(A) the certification requirement is specifically imposed by stat-
ute; or 
(B) written justification for the certification requirement is pro-
vided to the Administrator by the Council and the Administrator 
approves in writing the inclusion of the certification requirement. 
(3) EXECUTIVE AGENCY PROCUREMENT REGULATION.— 
(A) DEFINITION.—In subparagraph (B), the term ‘‘head of the 
executive agency’’ with respect to a military department means the 
Secretary of Defense. 
(B) WHEN CERTIFICATION REQUIREMENT MAY BE INCLUDED 
IN
REGULATION.—A requirement for a certification by a con-
tractor or offeror may not be included in a procurement regulation 
of an executive agency unless— 
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(i) the certification requirement is specifically imposed by 
statute; or 
(ii) written justification for the certification requirement is 
provided to the head of the executive agency by the senior 
procurement executive of the agency and the head of the exec-
utive agency approves in writing the inclusion of the certifi-
cation requirement. 
SUBCHAPTER II—CHIEF ACQUISITION OFFICERS COUNCIL 
§ 1311. Establishment and membership 
(a) ESTABLISHMENT.—There is in the executive branch a Chief Acquisi-
tion Officers Council. 
(b) MEMBERSHIP.—The members of the Council are— 
(1) the Deputy Director for Management of the Office of Manage-
ment and Budget; 
(2) the Administrator; 
(3) the Under Secretary of Defense for Acquisition, Technology, and 
Logistics; 
(4) the chief acquisition officer of each executive agency that is re-
quired to have a chief acquisition officer under section 1702 of this 
title and the senior procurement executive of each military department; 
and 
(5) any other senior agency officer of each executive agency, ap-
pointed by the head of the agency in consultation with the Chairman 
of the Council, who can effectively assist the Council in performing the 
functions set forth in section 1312(b) of this title and supporting the 
associated range of acquisition activities. 
(c) LEADERSHIP AND SUPPORT.— 
(1) CHAIRMAN.—The Deputy Director for Management of the Office 
of Management and Budget is the Chairman of the Council. 
(2) VICE CHAIRMAN.—The Vice Chairman of the Council shall be se-
lected by the Council from among its members. The Vice Chairman 
serves for one year and may serve multiple terms. 
(3) LEADER OF ACTIVITIES.—The Administrator shall lead the ac-
tivities of the Council on behalf of the Deputy Director for Manage-
ment. 
(4) SUPPORT.—The Administrator of General Services shall provide 
administrative and other support for the Council. 
§ 1312. Functions 
(a) PRINCIPAL FORUM.—The Chief Acquisition Officers Council is the 
principal interagency forum for monitoring and improving the Federal ac-
quisition system. 
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(b) FUNCTIONS.—The Council shall perform functions that include the 
following: 
(1) Develop recommendations for the Director of the Office of Man-
agement and Budget on Federal acquisition policies and requirements. 
(2) Share experiences, ideas, best practices, and innovative ap-
proaches related to Federal acquisition. 
(3) Assist the Administrator in the identification, development, and 
coordination of multiagency projects and other innovative initiatives to 
improve Federal acquisition. 
(4) Promote effective business practices that ensure the timely deliv-
ery of best value products to the Federal Government and achieve ap-
propriate public policy objectives. 
(5) Further integrity, fairness, competition, openness, and efficiency 
in the Federal acquisition system. 
(6) Work with the Office of Personnel Management to assess and ad-
dress the hiring, training, and professional development needs of the 
Federal Government related to acquisition. 
(7) Work with the Administrator and the Federal Acquisition Regu-
latory Council to promote the business practices referred to in para-
graph (4) and other results of the functions carried out under this sub-
section. 
CHAPTER 15—COST ACCOUNTING STANDARDS 
Sec. 
1501.
Cost Accounting Standards Board. 
1502.
Cost accounting standards. 
1503.
Contract price adjustment. 
1504.
Effect on other standards and regulations. 
1505.
Examinations. 
1506.
Authorization of appropriations. 
§ 1501. Cost Accounting Standards Board 
(a) ORGANIZATION.—The Cost Accounting Standards Board is an inde-
pendent board in the Office of Federal Procurement Policy. 
(b) MEMBERSHIP.— 
(1) NUMBER OF MEMBERS, CHAIRMAN, AND APPOINTMENT.—The 
Board consists of 5 members. One member is the Administrator, who 
serves as Chairman. The other 4 members, all of whom shall have expe-
rience in Federal Government contract cost accounting, are as follows: 
(A) 2 representatives of the Federal Government— 
(i) one of whom is a representative of the Department of 
Defense appointed by the Secretary of Defense; and 
(ii) one of whom is an officer or employee of the General 
Services Administration appointed by the Administrator of 
General Services. 
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(B) 2 individuals from the private sector, each of whom is ap-
pointed by the Administrator, and— 
(i) one of whom is a representative of industry; and 
(ii) one of whom is particularly knowledgeable about cost 
accounting problems and systems. 
(2) TERM OF OFFICE.— 
(A) LENGTH OF TERM.—The term of office of each member, 
other than the Administrator, is 4 years. The terms are staggered, 
with the terms of 2 members expiring in the same year, the term 
of another member expiring the next year, and the term of the last 
member expiring the year after that. 
(B) INDIVIDUAL
REQUIRED
TO
REMAIN
WITH
APPOINTING 
AGENCY.—A member appointed under paragraph (1)(A) may not 
continue to serve after ceasing to be an officer or employee of the 
agency from which that member was appointed. 
(3) VACANCY.—A vacancy on the Board shall be filled in the same 
manner in which the original appointment was made. A member ap-
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.— 
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(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 in the cost accounting standards gov-
erning 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. 
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(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 
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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. 
(E) REPORT.—The head of each executive agency shall report 
the waivers granted under subparagraphs (A) and (B) for that 
agency to the Board on an annual basis. 
(c) REQUIRED BOARD ACTION FOR PRESCRIBING STANDARDS AND IN-
TERPRETATIONS.—Before prescribing cost accounting standards and inter-
pretations, the Board shall— 
(1) take into account, after consultation and discussions with the 
Comptroller General, professional accounting organizations, contrac-
tors, and other interested parties— 
(A) the probable costs of implementation, including any infla-
tionary effects, compared to the probable benefits; 
(B) the advantages, disadvantages, and improvements antici-
pated in the pricing and administration of, and settlement of dis-
putes concerning, contracts; and 
(C) the scope of, and alternatives available to, the action pro-
posed to be taken; 
(2) prepare and publish a report in the Federal Register on the 
issues reviewed under paragraph (1); 
(3)(A) publish an advanced notice of proposed rulemaking in the 
Federal Register to solicit comments on the report prepared under 
paragraph (2); 
(B) provide all parties affected at least 60 days after publication to 
submit their views and comments; and 
(C) during the 60-day period, consult with the Comptroller General 
and consider any recommendation the Comptroller General may make; 
and 
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