(b) the Head of the Agency may grant an exemption if one of the following conditions is met: (a) contract and subcontracting values in excess of a certain amount where the non-compliance requires a cost estimate; and 30.603-1 Amendments required. (a) General. Suppliers indicate whether the award of a contract would require a change in established cost accounting practices affecting existing contracts and subcontracts (see 52.230-1). The procuring entity shall inform CAD/CAM if the tenderer declares that a change in cost accounting practice would be necessary. (b) Responsibilities of CAD/CAM. Before an appropriate adjustment in accordance with the applicable paragraphs concerning a necessary amendment to cost accounting standards 52.230-2; 52.230-3, Disclosure and consistency of cost accounting procedures; or 52.230-5, Educational Institution of Cost Accounting Standards, CFAO notes that- (1) the change in cost accounting practice is necessary to comply with a CAS or a change or interpretation thereof that has subsequently become applicable to one or more contracts or subcontracts; or (2) the previous cost accounting practice was in accordance with the applicable FCC and the change is necessary to ensure compliance. (c) publicity and preparation of proposals. (1) Where the award of a contract would require a change in an established cost accounting practice, the provision of section 52.230-7, Proposal Disclosure-Cost Accounting Practices Changes, requires the bidder to: (i) prepare the contract price proposal in response to the request using the modified cost accounting practice for the performance period for which the practice is used; and (ii) provide the procuring entity and CFAO with a description of the modified cost accounting practice as price support for the proposal. (2) Where a change is necessary to ensure compliance with the regulation (for reasons other than procurement) or compliance with a new or amended standard, clause 52.230-6, Administration of Cost Accounting Standards, requires the contractor to (i) provide the SAC with a description of the change at least 60 days (or another mutually acceptable date) before the change is implemented; and (ii) provide a rationale in support of a written statement by the Contractor that the impact of the change on costs is negligible. (d) Equitable adaptations to reflect new or amended standards.

(1) Amendments necessary to comply with new or amended standards may require appropriate adaptations, but only to contracts awarded before the effective date of the new or amended standard (see 52.230-2, 52.230-3 or 52.230-5). (2) If a contractor decides to implement an amendment necessary to comply with a new or amended standard before the date of application of the standard, CAD/CAM shall administer the amendment as a unilateral amendment (see 30.603-2). Contractors will not receive a reasonable adjustment prior to the date of application, which will result in an increase in overall costs to the government, unless CAD/CAM determines that the unilateral change is a desirable change. 30.603-2 Unilateral and desirable amendments. (a) Unilateral amendments. (1) The Contractor may unilaterally change its disclosed or established cost accounting practices, but the Government as a whole does not pay the increased costs resulting from the unilateral change. (2) Before making any adjustments to contract prices or costs in accordance with the applicable paragraphs regarding a unilateral amendment to 52.230-2, 52.230-3 or 52.230-5, CAD/CAM notes that: (i) the proposed adjustments to the price or costs of the contract will protect the Government against payment of the total increase in estimated costs; and (ii) the net effect of the proposed adjustments will not result in more than the increase in government-wide cost recovery. (b) Desirable changes. (1) Before taking action in accordance with the applicable subsections to remedy a desirable amendment to 52.230-2, 52.230-3 or 52.230-5, CAD/CAM shall determine that the amendment is a desirable change and is not prejudicial to the interests of the Government. (2) Until CAD/CAM has determined that a change in cost accounting practice is a desirable change, the change is a unilateral change. 3.

Factors to be considered in determining whether a change is desirable include, but are not limited to, whether (i) the contractor must modify the cost accounting practices it applies to the calculation of government procurement and subcontracts in order to comply with the provisions of Part 31; (ii) The Contractor shall take management measures that are directly related to the change and that result in cost savings for segments with contracts and subcontracts covered by the CAS over a period for which forward prices are developed, or 5 years, whichever is shorter, and cost savings are reflected in forward pricing rates; and (iii) funds are available if the provision requires an upward adjustment to the contract costs or contract price. (c) publicity and preparation of proposals. (1) If a Contractor makes a unilateral amendment, clause 52.230-6, Administration of Cost Accounting Standards requires the Contractor – (i) to submit a description of the change to CAD/CAM at least 60 days (or another consensus date) before the change is implemented; and (ii) provide a rationale in support of a written statement by the Contractor that the impact of the change on costs is negligible. (2) If a contractor implements the change in cost accounting practice without submitting the notice required by paragraph (c)(1) of this subsection, the OFC may conclude that the change is a failure to consistently comply with a cost accounting practice and treat it as a non-compliance with section 30.605. (d) Retroactive amendments. (1) If a contractor requests that a unilateral amendment be made retroactively, the contractor shall justify it. (2) The CAD/CAM shall promptly review the Contractor`s application and inform the Contractor in writing as soon as possible whether or not the application will be accepted. 3. The CFAO shall not approve a date for the retroactive amendment before the beginning of the contractor`s financial year in which the application is submitted. (e) Changes in the accounts of contractors due to external restructuring activities. Contractual pricing and cost adjustment requirements do not apply to changes to compliant cost accounting practices that are directly related to and respond to Article 10 U.C.

2325. However, the disclosure requirements set out in paragraphs 52-230-6(b) must be met. (a) General. Suppliers indicate whether the award of a contract would require a change in established cost accounting practices affecting existing contracts and subcontracts (see 52.230-1). The procuring entity shall inform CAD/CAM if the tenderer declares that a change in cost accounting practice would be necessary. Since IDIQ contracts provide for a minimum and maximum amount at which the minimum must be ordered and the maximum is often not a « realistic estimate of the total quantity », determining the value of the order is problematic and can lead to irrational results that can discourage companies from applying for government contracts. .

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