10 U.S.C. § 190 (ARMED FORCES)
§ 190. Defense Cost Accounting Standards Board
(a) Organization.—
The Defense Cost Accounting Standards Board is an independent board in the Office of the Secretary of Defense.
(b) Membership.—
(1) The Board consists of seven members. One member is the Chief Financial Officer of the Department of Defense or a designee of the Chief Financial Officer, who serves as Chairman. The other six members, all of whom shall have experience in contract pricing, finance, or cost accounting, are as follows:
(A) Three representatives of the Department of Defense appointed by the Secretary of Defense; and
(B) Three individuals from the private sector, each of whom is appointed by the Secretary of Defense, and—
(i) one of whom is a representative of a nontraditional defense contractor (as defined in section 2302(9) of this title); and
(ii) one of whom is a representative from a public accounting firm.
(2) A member appointed under paragraph (1)(A) may not continue to serve after ceasing to be an officer or employee of the Department of Defense.
(c) Duties of the Chairman.—
The Chief Financial Officer of the Department of Defense, after consultation with the Defense Cost Accounting Standards Board, shall prescribe rules and procedures governing actions of the Board under this section.
(d) Duties.—
The Defense Cost Accounting Standards Board—
(1) shall review cost accounting standards established under section 1502 of title 41 and recommend changes to such cost accounting standards to the Cost Accounting Standards Board established under section 1501 of such title;
(2) has exclusive authority, with respect to the Department of Defense, to implement such cost accounting standards to achieve uniformity and consistency in the standards governing measurement, assignment, and allocation of costs to contracts with the Department of Defense; and
(3) shall develop standards to ensure that commercial operations performed by Government employees at the Department of Defense adhere to cost accounting standards (based on cost accounting standards established under section 1502 of title 41 or Generally Accepted Accounting Principles) that inform managerial decisionmaking.
(e) Compensation.—
(1) Members of the Defense Cost Accounting Standards Board who are officers or employees of the Department of Defense shall not receive additional compensation for services but shall continue to be compensated by the Department of Defense.
(2) 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) While serving away from home or regular place of business, Board members and other individuals serving on an intermittent basis shall be allowed travel expenses in accordance with section 5703 of title 5.
(f) Auditing Requirements.—
(1) Notwithstanding any other provision of law, contractors with the Department of Defense may present, and the Defense Contract Audit Agency shall accept without performing additional audits, a summary of audit findings prepared by a commercial auditor if—
(A) the auditor previously performed an audit of the allowability, measurement, assignment to accounting periods, and allocation of indirect costs of the contractor; and
(B) such audit was performed using relevant commercial accounting standards (such as Generally Accepted Accounting Principles) and relevant commercial auditing standards established by the commercial auditing industry for the relevant accounting period.
(2) The Defense Contract Audit Agency may audit direct costs of Department of Defense cost contracts and shall rely on commercial audits of indirect costs without performing additional audits, except that in the case of companies or business units that have a predominance of cost-type contracts as a percentage of sales, the Defense Contract Audit Agency may audit both direct and indirect costs.
(Added Pub. L. 114–328, div. A, title VIII, § 820(b)(1), Dec. 23, 2016, 130 Stat. 2274.)
heading: References in Text
text: Level IV of the Executive Schedule, referred to in subsec. (e)(2), is set out in section 5315 of Title 5, Government Organization and Employees.
heading: Effective Date
text: Pub. L. 114–328, div. A, title VIII, § 820(d), Dec. 23, 2016, 130 Stat. 2276, provided that: “The amendments made by this section [enacting this section and amending sections 1501 and 1502 of Title 41, Public Contracts] shall take effect on October 1, 2018.”