"(g) The Board shall from time to time promulgate cost-accounting standards designed to achieve uniformity and consistency in the cost-accounting principles followed by defense contractors and subcontractors under Federal contracts. Such promulgated standards shall be used by all relevant Federal agencies and by defense contractors and subcontractors in estimating, accumulating, and reporting costs in connection with the pricing, administration and settlement of all negotiated prime contract and subcontract national defense procurements with the United States in excess of $100,000, other than contracts or subcontracts where the price negotiated is based on (1) established catalog or market prices of commercial items sold in substantial quantities to the general public, or (2) prices set by law or regulation. "In promulgating such standards and major rules and regulations for the implementation of such standards, the Board shall take into account, and shall report to the Congress in the transmittal required by section 719(h) (3) of this Act, the probable costs of implementation, including inflationary effects, if any, compared to the probable benefits, including advantages and improvements in the pricing, administration, and settlement of contracts.". "(h) (1) The Board is authorized to make, promulgate, amend, and rescind rules and regulations for the implementation of cost-accounting standards promulgated under subsection (g). Such regulations shall require defense contractors and subcontractors as a condition of contracting to disclose in writing their cost-accounting principles, including methods of distinguishing direct costs from indirect costs and the basis used for allocating indirect costs, and to agree to a contract price adjustment, with interest, for any increased costs paid to the defense contractor by the United States because of the defense contractor's failure to comply with duly promulgated cost-accounting standards or to follow consistently his disclosed cost-accounting practices in pricing contract proposals and in accumulating and reporting contract performance cost data. Such interest shall not exceed 7 per centum per annum measured from the time such payments were made to the contractor or subcontractor to the time such price adjustment is effected. If the parties fail to agree as to whether the defense contractor or subcontractor has complied with cost-accounting standards, the rules and regulations relating thereto, and cost adjustments demanded by the United States, such disagreement will constitute a dispute under the contract dispute clause. "(2) The Board is authorized, as soon as practicable after the date of enactment of this section, to prescribe rules and regulations exempting from the requirements of this section such classes or categories of defense contractors or subcontractors under contracts negotiated in connection with national defense procurements as it determines, on the basis of the size of the contracts involved or otherwise, are appropriate and consistent with the purpose sought to be achieved by this section. "(3) Cost-accounting standards promulgated under subsection (g) and rules and regulations prescribed under this subsection shall take effect not earlier than the expiration of the first period of sixty calendar days of continuous session of the Congress following the date on which a copy of the proposed standards, rules, or regulations is transmitted to the Congress; if, between the date of transmittal and the expiration of such sixty-day period, there is not passed by the two Houses a concurrent resolution stating in substance that the Congress does not favor the proposed standards, rules, or regulations. For the purposes of this subparagraph, in the computation of the sixty-day period there shall be excluded the days on which either House is not in session because of adjournment of more than three days to a day certain or an adjournment of the Congress sine die. The provisions of this paragraph do not apply to modifications of cost accounting standards, rules, or regulations which have become effective in conformity with those provisions. "(i) (A) Prior to the promulgation under this section of rules, regulations, costaccounting standards, and modifications thereof, notice of the action proposed to be taken, including a description of the terms and substance thereof, shall be published in the Federal Register. All parties affected thereby shall be afforded a period of not less than thirty days after such publication in which to submit their views and comments with respect to the action proposed to be taken. After full consideration of the views and comments so submitted the Board may promulgate rules, regulations, costaccounting standards, and modifications thereof which shall have the full force and effect of law and shall become effective not later than the start of the second fiscal quarter beginning after the expiration of not less than thirty days after publication in the Federal Register. "(B) The functions exercised under this section are excluded from the operation of sections 551, 553–559, and 701-706 of title 5, United States Code. "(C) The provisions of paragraph (A) of this subsection shall not be applicable to rules and regulations prescribed by the Board pursuant to subsection (h) (2). "(j) For the purpose of determining whether a defense contractor or subcontractor has complied with duly promulgated cost-accounting standards and has followed consistently his disclosed cost-accounting practices, any authorized representative of the head of the agency concerned, of the Board, or of the Comptroller General of the United States shall have the right to examine and make copies of any documents, papers, or records of such contractor or subcontractor relating to compliance with such cost-accounting standards and principles. "(k) The Board shall report to the Congress, not later than twenty-four months after the date of enactment of this section, concerning its progress in promulgating costaccounting standards under subsection (g) and rules and regulations under subsection (h). Thereafter, the Board shall make an annual report to the Congress with respect to its activities and operations, together with such recommendations as it deems appropriate. "(1) There are authorized to be appropriated such sums as may be necessary to carry out the provisions of this section.' ADMINISTRATION This part together with Part 303, Release of Information, and Part 304, Delegations, of this chapter is published in compliance with Public Law 90-23, section (a) (1), 5 U.S.C. 552(a) (1), and constitutes a description of the Cost Accounting Standards Board. § 301.2 General statement of the Board's functions. In general, the Board promulgates cost accounting standards designed to achieve uniformity and consistency in the cost accounting practices followed by defense contractors. It also promulgates rules and regulations for the implementation of such standards. Printing Office. The published rules include: (1) Procedural regulations which govern the formal and informal methods whereby persons dealing with the Board can present information to the Board to enable the Broad to promulgate rules, regulations, and cost accounting standards and to perform other duties for which it is responsible under section 719 of the Defense Production Act of 1950, as amended (50 U.S.C. App. 2168). (2) Rules, regulations, and cost accounting standards which prescribe for relevant Federal agencies and for defense contractors and subcontractors various substantive and procedural requirements relating to cost accounting standards for use in connection with defense contracts. (3) Regulations delegating matters to the Board's staff and describing how the public may deal with the Board in obtaining information. (4) Board bylaws which govern Board membership, meetings, and formal action by Board vote. (c) The Board may at its discretion respond to requests for interpretation of its rules, regulations, and cost accounting standards. § 301.5 Views and comments. Proposed rules, regulations, or cost accounting standards of the Cost Accounting Standards Board shall be published for comment in the FEDERAL REGISTER. All parties affected thereby shall be afforded a period of not less than 30 days in which to submit to the Board their views and comments on the proposal; but in exceptional cases, the Board may provide for fewer than 30 days for the submission of views and comments. When fewer than 30 days are allowed, the Board notice inviting views and comments shall state the reasons therefor. All formal submissions required or permitted to be made to the Board under the rules, regulations, or cost accounting standards should be addressed to the Cost Accounting Standards Board, 441 G Street NW., Washington, DC 20548, in an original and two copies, unless otherwise provided by the rule, regulation, or standard under which submission is made. Where no form requirement is there specified, submission in letter or other reasonable form will be accepted. § 301.8 Final publication. Any proposed rule, regulation, or cost accounting standard required to be published under section 719 (i) (A) of the Defense Production Act of 1950, as amended, 50 U.S.C. App. 2168(1) (A), shall be published in the FEDERAL REGISTER after the Board has considered views and comments submitted pursuant to § 301.5 and any public hearing held pursuant to § 301.6. § 301.9 Transmittal to the Congress. Transmittal to the Congress of any proposed rule, regulation, or cost accounting standard as required by section 719(h) (3) of the Defense Production Act of 1950, as amended, 50 U.S.C. App. 2168(h) (3), shall be made simultaneously with final publication of the proposed rule, regulation, or cost accounting standard as provided for in § 301.8. § 301.10 Organization and delegation of authority. The Board, consisting of the Comptroller General of the United States who is the Chairman and four Board members appointed by him for terms of 4 years, acts to carry out the duties and responsibilities of the Cost Accounting Standards Board, established by Public Law 91-379, 84 Stat. 796, 50 U.S.C. App. 2166, 2168. The Board's staff of professional, techncial, and supporting personnel is directed and supervised by the Executive Secretary. Delegations of authority to the Executive Secretary and other staff members are described in detail in Part 304 of this Title 4. § 301.11 Availability of information and materials. The Board publishes a regulation in 4 CFR Part 303 concerning the availability for inspection and copying of Board records. That regulation states in detail what information is available, and what and where records may be inspected. Generally speaking, the following records are maintained and available (a) Minutes of Board meetings. (b) Substantive regulations of general applicability and general policy and interpretation of general applicability. (c) Rules, regulations, and cost accounting standards issued pursuant to section 719 of the Defense Production Act of 1950, as amended, 50 US C. App 2168. (d) A record of every Board proceeding including the final votes of each member of the Board participating in the proceeding. |