Do You Need to Be CAS-Compliant? A Decision-Making Checklist

If your business is growing in the federal space, you may be wondering whether you need to be CAS-compliant. Cost Accounting Standards (CAS) are a set of government regulations that apply to certain federal contracts, and understanding whether they apply to you is critical for maintaining compliance and avoiding risk in CAS-compliant government contracting.

Use this checklist to assess your CAS obligations:

• Is your contract value over $7.5 million?
  Contracts at or above this threshold may trigger modified CAS coverage.
• Do you hold a cumulative total of $50 million or more in active CAS-covered contracts?
  If yes, full CAS coverage may apply to new awards.
• Are you working under a cost-reimbursement or flexibly priced contract?
  These contracts are more likely to require CAS compliance.
• Does your solicitation specifically reference CAS requirements?
  Always review the RFP for CAS clauses.
• Do you already have a Disclosure Statement on file?
  If not—and CAS applies—you’ll need one before award.

CAS compliance isn’t optional when triggered. It requires consistent accounting practices, a formal Disclosure Statement (if applicable), and adherence to 19 detailed standards.

At N5 Specialized Accounting Services & Support, we help contractors assess their CAS obligations, develop Disclosure Statements, and implement compliant accounting systems—ensuring a smooth path forward in government contracting.