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Rule2026-17901

Increase of Monetary Thresholds and Other Matters Related to Cost Accounting Standards Program Requirements

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Published
September 1, 2026
Effective
October 1, 2026

Issuing agencies

Management and Budget OfficeFederal Procurement Policy Office

Abstract

The Office of Management and Budget (OMB), Cost Accounting Standards Board (Board), is publishing a final rule to increase the Cost Accounting Standards (CAS) thresholds and agency waiver authority, and issue clarifications on application of the CAS thresholds and exemptions to indefinite delivery contracts (IDCs).

Full Text

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<title>Federal Register, Volume 91 Issue 168 (Tuesday, September 1, 2026)</title>
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[Federal Register Volume 91, Number 168 (Tuesday, September 1, 2026)]
[Rules and Regulations]
[Pages 56056-56060]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-17901]


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OFFICE OF MANAGEMENT AND BUDGET

Office of Federal Procurement Policy

48 CFR Part 9903

RIN 0348-AB85


Increase of Monetary Thresholds and Other Matters Related to Cost 
Accounting Standards Program Requirements

AGENCY: Cost Accounting Standards Board, Office of Federal Procurement 
Policy. Office of Management and Budget.

ACTION: Final rule.

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SUMMARY: The Office of Management and Budget (OMB), Cost Accounting 
Standards Board (Board), is publishing a final rule to increase the 
Cost Accounting Standards (CAS) thresholds and agency waiver authority, 
and issue clarifications on application of the CAS thresholds and 
exemptions to indefinite delivery contracts (IDCs).

DATES: Effective October 1, 2026.

FOR FURTHER INFORMATION CONTACT: John L. McClung, Manager, Cost 
Accounting Standards Board (telephone: 202-881-9758; email: 
<a href="/cdn-cgi/l/email-protection#551a181716140617153a38377b303a257b323a23"><span class="__cf_email__" data-cfemail="fdb2b0bfbebcaebfbd92909fd398928dd39a928b">[email&#160;protected]</span></a>.).

SUPPLEMENTARY INFORMATION: 

I. Background

    On March 20, 2026, the Board published a notice of proposed 
rulemaking (NPRM) (91 FR 13559) to solicit views on the Board's 
provisional conclusions regarding increases to the CAS thresholds and 
agency waiver authority, and proposed clarifications on applying the 
CAS thresholds and exemptions to indefinite delivery contracts (IDCs).
    The Board received nine sets of public comments to the NPRM: five 
from industry associations, two from individual contractors, one from a 
consulting firm, and one from an individual. Comments strongly 
supported the Board's proposed actions and the deregulatory nature of 
the NPRM. Although comments did not provide information to quantify the 
impact of this final rule, all comments strongly supported the 
qualitative aspects noted in the NPRM: reduced compliance costs, 
simplified CAS administration for existing contractors,

[[Page 56057]]

and reduced barriers to entry for nontraditional contractors, new 
entrants, and mid-size entities who no longer qualify for a full 
exemption from CAS as small businesses. Specific comments and 
discussion, as applicable, are detailed in the sections below. This 
final rule reflects input from the public, as well as research 
conducted by the Board. This final rule is issued by the Board in 
accordance with the requirements of 41 U.S.C. 1502.

II. Regulatory Thresholds

a. Overview and Conclusion

    This final rule raises the thresholds for full CAS coverage and 
Disclosure Statement requirements from the current $50 million to $100 
million. This final rule also eliminates the exemption at CAS 9903.202-
1(c)(ii) which currently exempts a Disclosure Statement from a segment 
if during the most recently completed cost accounting period the 
segment's CAS-covered awards are less than 30 percent of total segment 
sales for the period and less than $10 million. As a result of the 
higher thresholds this exemption is no longer necessary.
    Based on public comments this final rule further revises 9903.202-
1(b)(2) to more clearly state that a Disclosure Statement is required 
only for segments or business units that independently meet the 
applicable thresholds for full CAS coverage. As a result, the Board is 
also removing CAS 9903.202-1(c) in its entirety as it is no longer 
necessary with the additional clarity provided in 9903.202-1(b)(2) as 
suggested by public comments.
    Based on public comments this final rule further amends 9903.201-2 
(b) to provide a mechanism for determining eligibility for modified 
coverage for new solicitations and awards for contractors or 
subcontractors currently subject to full coverage that would not 
otherwise be subject to full coverage at the new $100 million 
threshold. This requires that the contractor or subcontractor has no 
unresolved CAS noncompliances.
    As detailed in the NPRM, the Board's analysis estimated these 
changes will result in a substantial reduction of burden and lower the 
barrier to entry with a minimal loss in the total dollars currently 
subject to full coverage and Disclosure Statement requirements.

b. Summary of Public Comments on Regulatory Thresholds

    Comments strongly supported the Board's provisional conclusions in 
the NPRM to raise the regulatory thresholds and eliminate the exemption 
at CAS 9903.202-1(c)(ii). Comments raising additional issues are as 
follows:
    Comment: A number of comments requested additional improvements to 
the proposed language covering Disclosure Statement requirements. While 
these comments offered varying alternatives, they identified similar 
opportunities for the Board to further streamline and provide greater 
clarity on applying the Disclosure Statement requirements for entities 
with multiple CAS reporting segments. For example, as one comment 
explained,

    The current requirements to aggregate total company CAS covered 
awards in 9903.202-1(b)(2) and then to separately assess 
applicability at the business unit (or segment) level in 9903.202-
1(c) creates an unnecessary step and causes confusion in determining 
whether a Disclosure Statement is required for each business unit. 
In the spirit of streamlining and simplifying regulatory 
requirements and reducing administrative burden, we recommend 
eliminating the total company threshold and implementing the 
threshold at the business unit level to align the threshold to the 
filing requirement.

    The comment recommended revising the current language at 9903.202-
1(b)(2) to more clearly state that a Disclosure Statement is required 
only for segments or business units that independently meet the 
applicable thresholds for full CAS coverage. With this clarification 
they further recommended deleting CAS 9903-202-1(c) in its entirety as 
it is no longer necessary with the recommended changes in section 
9903.202-1(b)(2).
    Response: The Board concurs this creates an unnecessary step and 
may cause confusion in determining whether a Disclosure Statement is 
required for each business unit. The Board has incorporated this 
recommendation in the final rule as noted above.
    Comment: Multiple commenters recommended the Board consider issuing 
transition guidance related to the application of the new thresholds 
considering the potential implications for full versus modified CAS 
coverage. For example, as one commenter theorized; if a contractor is 
performing a $50 million contract subject to full CAS coverage under 
the current thresholds with no other CAS-covered awards and receives a 
$40 million CAS-covered award under the new thresholds it would be 
subject to full coverage. In this scenario, the new award itself is not 
over $100 million and taken together with the existing contract the 
awards are not over $100 million; however, because the contractor had 
an award subject to full CAS coverage under the prior thresholds, any 
new award between $35 million and $100 million (not otherwise exempt 
from CAS) would be subject to full CAS coverage due to the requirements 
at 9903.201-2(b)(2).
    Comments also contend that to fully realize the deregulatory 
intent, the Board should ensure a level playing field for ``mid-tier'' 
firms. This would allow existing contractors otherwise eligible for 
modified coverage to receive the same benefit as a new entrant or other 
entity currently not subject to CAS if they are competing for an award 
that would qualify for modified CAS coverage. Without a transition 
mechanism, a number of existing contractors will face a significant 
competitive disadvantage against new entrants who benefit from the 
higher $100 million threshold immediately.
    Response: The Board appreciates the concerns raised and generally 
agrees such a mechanism is desirable and in the spirit of the Board's 
deregulatory actions. However, the Board believes this needs to be 
contingent on a contractor currently being in a compliant status. As 
such, the Board has provided added coverage in 9903.202-1(b) to provide 
this with the requirement that the contractor or subcontractor has no 
outstanding CAS noncompliances. In addition, the Board expects 
contractors will continue to follow their existing practices as they 
comply with CAS. As such, any current or future cost accounting 
practice changes related to the transition from full CAS coverage to 
modified CAS coverage would be considered unilateral and subject to the 
contract price adjustment requirements.
    Comment: Comments generally supported the use of the Unique Entity 
Identifier (UEI) as a proxy for a covered segment for the purpose of 
analyzing the potential impact of the regulatory changes contemplated 
in the NPRM. However, comments raised concerns that there may not 
always be a one-to-one relationship between a CAS segment and a UEI. 
These comments urged the Board to clarify it was not changing the CAS 
definition of a segment.
    Response: The NPRM did not propose to change, nor is the final rule 
changing the definition of a CAS segment contained in CAS regulations. 
The Board appreciates the concerns raised by the public and will 
continue to evaluate how changes in other statutory requirements, 
technology, and the business environment impact CAS program 
requirements. If the Board determines further changes are necessary to 
the definitions and application of CAS program requirements they will 
be made through subsequent rulemaking.

[[Page 56058]]

III. Statutory Thresholds

a. Overview and Conclusion

    As detailed in the NPRM, OMB developed a legislative proposal to 
decouple the basic CAS monetary threshold from the Truthful Cost or 
Pricing Data statute, and raise it to a stated dollar amount of $35 
million. The proposal also eliminated the $7.5 million trigger contract 
threshold as it would no longer be necessary with a higher 
applicability threshold. The proposal was transmitted to Congress in 
June of 2025 for consideration in the 2026 National Defense 
Authorization Act (NDAA). As discussed in the NPRM the Board's analysis 
estimated these changes would reduce the number of CAS-covered business 
segments by approximately 60 percent, while still maintaining over 90 
percent of the current dollars subject to CAS coverage. Section 1806 of 
the 2026 NDAA fully codified the OMB legislative proposal, and this 
final rule revises 9903.201-1 CAS applicability to implement these 
changes.
    Based on public comments this final rule also modifies the three 
statutory CAS exemptions at 9903.201-1(b) to align them with the 
amendments made by Section 1806(d) of the 2026 NDAA. Section 1806(d) 
added language to the three statutory CAS exemptions in 41 U.S.C. 1502 
to make them applicable to portions of contracts and subcontracts. 
These changes address contract arrangements that include multiple 
contract types (i.e., hybrid contracts).

b. Summary of Public Comments

    Comments strongly supported OMB's legislative proposal and the 
Board's provisional conclusions in the NPRM to raise the statutory 
thresholds as a result of the 2026 NDAA codification of the OMB 
proposal. A number of comments related to additional provisions of the 
2026 NDAA were made as follows:
    Comment: Commenters pointed out that the proposed rule did not 
address other CAS related provisions included in the 2026 NDAA. 
Specifically changes to the contract price adjustments requirements in 
41 U.S.C. 1503, and the Section 1806(d) amendments to the statutory 
exemptions to accommodate hybrid contract arrangements.
    Response: The Board recognizes the importance of the remaining 2026 
NDAA provisions. The Board has updated the statutory exemptions 
included 9903.201-1(b) to align them with the 2026 NDAA revisions to 
apply those exemptions to portions of contracts and subcontracts (i.e., 
hybrids). However, attempting to incorporate the complex issues related 
to the contract price adjustments requirements in 41 U.S.C. 1503 would 
require additional notice and comment. As noted in its July 2, 2025 
notice of agenda topics, (90 FR 29048) the Board has already begun 
review of contract price adjustments requirements and has established a 
separate case which will incorporate the direction provided in the 2026 
NDAA.

IV. Agency Head Waiver Authority

a. Overview and Conclusion

    CAS 9903.201-5 currently provides the head of an executive agency 
the authority to waive CAS on their own for contracts valued up to $15 
million without seeking approval from the Board, but they must notify 
the Board of the waiver. This final rule raises this threshold to $100 
million. This increase implements changes made to 41 U.S.C. 1502(b)(3) 
by Section 820 of the 2017 NDAA.

b. Summary of Public Comments

    Comments strongly supported the Board updating its regulations to 
accurately reflect the increased waiver authority for the head of an 
executive agency as a result of the 2017 NDAA change.

V. Application of CAS to Indefinite Delivery Contracts

a. Overview and Conclusion

    Indefinite delivery contracts (IDCs) are contracts where work is 
awarded through the placement of individual task and delivery orders as 
requirements arise, with a minimum guaranteed order value and a ceiling 
amount reflecting the maximum total value of orders that can be placed 
under the contract. They include the Federal Supply Schedule (FSS) 
program and government-wide acquisition contracts (GWACs). Obligations 
under the FSSs and GWACs are tracked separately from other task and 
delivery order contracts in the Federal Procurement Data System (FPDS).
    As detailed in the NPRM, analysis of FPDS data indicates the use of 
IDCs has continued to increase in both size and as a percentage of 
overall contract obligations. Although there is a statutory preference 
to award IDCs to multiple contractors, they may also be awarded to a 
single contractor. The prevalence of obligations on task and delivery 
orders against IDCs awarded to a single contractor has also increased, 
reaching $262 billion in Fiscal Year (FY) 2024. This represented over 
one-third of all contract obligations in FY2024. Preliminary data for 
FY 2025 indicated a similar dispersion of contract obligations.
    The Board has concluded that, unlike multiple-award IDCs, the 
information required to determine CAS exemptions and consistently apply 
CAS to single-award IDCs is available at the time of award of the 
single-award IDC. For these reasons, this final rule amends 9903.202-1 
to make clear that application of CAS to multiple-award IDCs including 
all exemptions is determined at the task or delivery order level. For 
multiple-award IDCs CAS would apply only to those individual task or 
delivery orders whose values meet the monetary threshold for CAS 
coverage and do not qualify for another CAS exemption.
    This final rule also amends 9903.202-1 to make clear that 
application of CAS applicability to single-award IDCs is determined at 
the time of award of the IDC using the ceiling value to assess if the 
monetary threshold has been met. Based on input from public comments, 
this final rule adds additional language to clarify that a single-award 
IDC can be exempt if the entire IDC meets one of the other exemptions 
in 9903.202-1(b) (i.e., the IDC is awarded to a small business, the IDC 
only provides for orders of commercial products or commercial services, 
or the IDC only allows for orders that are firm-fixed-price and the IDC 
was awarded on the basis of adequate price competition without the 
submission of certified cost or pricing data).
    This final rule is consistent with the criteria the Board 
identified for evaluating alternatives: it helps each contract party 
manage risk; it is expected to reduce regulatory burden, and promote 
competition by minimizing complexity and providing guidance that is 
clear and straightforward. Having a clear and predictable rule promotes 
consistency in the application of CAS and avoids friction and disputes. 
Public comments did not provide any additional alternatives or criteria 
for the Board to consider.

b. Summary of Public Comments

    Comments strongly supported the Board's provisional conclusions in 
the NPRM to apply CAS exemptions at the task or delivery order level 
for multiple-award IDCs. However, comments did not support the Board's 
provisional conclusions in the NPRM to apply CAS exemptions at the IDC 
level for single-award IDCs. Comments preferred that CAS applicability 
for all IDCs should be determined at the task or delivery order level 
as proposed by the Board for multiple-award IDCs. Although the Board 
was not persuaded by these

[[Page 56059]]

comments, it appreciates the breadth and depth of responses. 
Illustrative examples of concerns raised are discussed in further 
detail below.
    Comment: Some comments argue that the Board's proposed approach of 
treating single-award IDCs differently than multiple-award IDCs creates 
inconsistencies. Some further posit the approach is contradictory to 
the purpose of the CAS exemptions themselves, which are meant to reduce 
the administrative burden on low-risk acquisitions. Others declared 
this approach creates inequity in the treatment of single-award and 
multiple-award IDCs.
    Response: The Board does not consider the approach as inconsistent 
or creating inequities. Single-award and multiple-award IDCs are 
inherently different. Task or delivery orders awarded under each type 
of IDC are awarded under different circumstances and present 
differentiated levels of risk. Single-award IDCs establish a long-term 
relationship without maintaining competition for task or delivery 
orders. Single-award IDCs increase the potential for vendor lock-in, 
further reducing competition and creating risk to the Government. This 
type of transaction creates higher risk, not lower risk as some 
comments suggested.
    Comment: Some comments theorized the Board's proposed approach of 
determining CAS applicability differently for single-award IDCs could 
result in applying CAS to transactions that would otherwise be exempt 
such as commercial products and commercial services. One comment 
postulated that the application of CAS at the IDC level could result in 
the application of CAS to tasks or delivery orders that would be exempt 
if these same task or delivery orders were issued under a multiple-
award IDC or nearly all other contract scenarios. Another comment 
declared the Board's proposed approach of determining CAS applicability 
differently for single-award IDCs would result in application of CAS to 
fixed-price contracts.
    Response: The Board appreciates the concerns raised associated with 
unique hybrid contract arrangements. As noted above, the Board is 
addressing the application of CAS to hybrid contracts through this 
rulemaking. In addition, the Board has added additional language to 
clarify that an entire single-award IDC could be exempt under certain 
circumstances.
    Comment: A number of comments suggested the Board delay issuance of 
a final rule, and conduct additional data analysis related to single-
award IDCs. This point was part of their overall objection to the 
Board's proposed approach for single-award IDCs, and concerns that in 
some cases the cumulative value of task or delivery orders on single-
award IDCs may not reach or could fall well below the ceiling value. 
For example, it would be possible for a $35 million single-award IDC to 
receive less than $35 million in tasks or delivery orders. Similarly, a 
$100 million single-award IDC could receive less than $100 million in 
tasks or delivery orders.
    Response: The Board recognizes the potential exists for cases as 
those described by comments and has carefully considered the likelihood 
of these scenarios in both the NPRM and this final rule. These 
scenarios under single-award IDCs are similar to the risk under 
definitive contracts that may, in some cases, not have all options 
exercised. The Board believes the risk, similar to most regulations 
applying thresholds, is amplified at or near the threshold. However, 
the Board believes this risk decreases at higher values and is 
mitigated as a result of the increased thresholds finalized in this 
rule. The Board's analysis also indicated that most of the entities 
receiving single-award IDCs would otherwise be subject to CAS based on 
definitive awards, which further mitigates this risk. The Board 
appreciates the willingness of the industry associations to engage with 
their members to collect, aggregate, and provide the Board with actual 
data. This would be particularly beneficial for subcontracts where 
currently the government-wide data is limited. Lastly, the Board notes 
that this final rule does not preclude the Board from conducting 
further analysis or additional rulemaking in the future as the impact 
of the threshold increases take effect and additional information 
becomes available or is provided to the Board.

VI. Expected Impact of the Rule

    This final rule is deregulatory, reduces compliance costs, 
simplifies CAS administration for existing contractors, and reduces 
barriers to entry for nontraditional contractors, including new mid-
size entities who no longer qualify for a full exemption from CAS as 
small businesses. This final rule increases the basic CAS applicability 
threshold from the current $2.5 million to $35 million, and eliminates 
the $7.5 million trigger contract concept. This simplifies the 
determination of CAS applicability while dramatically lowering barriers 
to entry on larger value contracts. Larger contract values will attract 
additional private investment into the federal contracting marketplace 
and increase competition as a result of the higher point of entry 
without the need to establish more sophisticated compliance regimes 
required to comply with CAS requirements.
    This final rule further reduces the CAS regulatory footprint by 
doubling the thresholds for full CAS coverage and Disclosure Statement 
requirements from $50 million to $100 million. This significantly 
reduce compliance burden and lowers barriers to entry into the federal 
marketplace. The Board analyzed FPDS data for the five-year period 
covering FYs 2020 through 2024 and estimates there have been 773 
entities subject to full coverage and Disclosure Statement requirements 
with aggregate total contract values during the period of $1.22 
trillion. Applying the finalized threshold of $100 million to the data 
set estimates a reduction in the number of entities to 564 while 
maintaining $1.21 trillion of the dollars. This represents a nearly 30 
percent reduction in entities that would be subject to full CAS 
coverage and Disclosure Statement reporting with a less than one 
percent loss of the dollars currently subject to these requirements. 
The higher threshold for full coverage reduces the barriers to entry 
for nontraditional contractors including contractors that have outgrown 
their small business size status and no longer qualify for a full 
exemption from CAS as small businesses as they may be more willing to 
compete for larger contracts only subject to modified coverage.
    This final rule codifies needed clarity on applying the CAS 
thresholds and exemptions to IDCs. Having a clear rule avoids 
unnecessary ambiguity, friction and contract disputes. Determining CAS 
applicability for multiple-award IDCs at the task or delivery order 
ensure CAS is not overapplied to lower-risk transactions. Similarly, 
determining CAS applicability for single-award IDCs at the IDC level 
ensures CAS is not underapplied to higher-risk transactions. This 
lowers barriers to entry into the federal marketplace as potential 
offerors now have clarity on whether or not they will be subject to CAS 
and, if covered, whether full or modified.
    The changes addressed in this final rule, both individually and in 
conjunction with the Board's ongoing broader CAS to GAAP conformance 
efforts simplifies CAS administration and reduces barriers to entry for 
nontraditional contractors including new mid-size entities who no 
longer qualify as small businesses. These actions are expected to 
increase competition in federal contracting.

[[Page 56060]]

VII. Regulatory Flexibility Act

    CAS Board rules do not impact small entities within the meaning of 
the Regulatory Flexibility Act 5 U.S.C. 601-612. Contracts and 
subcontracts with small business concerns are exempted from all CAS 
requirements.

VIII. Executive Orders 12866, 13563 and 14192

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits. E.O. 13563 emphasizes the importance of quantifying both 
costs and benefits, of reducing costs, of harmonizing rules, and of 
promoting flexibility. This rule is not a significant regulatory action 
under E.O. 12866, Regulatory Planning and Review, dated September 30, 
1993. This rule is a deregulatory action under E.O. 14192 based on the 
discussion in the ``Expected Impact of the Rule'' section.

IX. Paperwork Reduction Act

    The Paperwork Reduction Act, Public Law 96-511, does not apply to 
this final rule, because this rule imposes no paperwork burden on 
offerors, affected contractors and subcontractors, or members of the 
public which requires the approval of OMB under 44 U.S. U.S.C. 3501, et 
seq.

List of Subjects in 48 CFR 9903

    Government procurement, Cost accounting standards.

Kevin R. Rhodes,
Administrator, Office of Federal Procurement Policy, and Chair, Cost 
Accounting Standards Board.

    For the reasons set forth in the preamble, the Office of Management 
and Budget is amending Chapter 99 of Title 48 of the Code of Federal 
Regulations as set forth below:

PART 9903--CONTRACT COVERAGE

0
1. The authority citation for part 9903 continues to read as follows:

    Authority: Pub. L. 111-350, 124 Stat. 3677, 41 U.S.C. 1502.


0
2. Amend section 9903.201-1 by revising paragraph (b) and adding 
paragraph (c) to read as follows:


9903.201-1  CAS applicability.

* * * * *
    (b) The following categories of contracts and subcontracts are 
exempt from all CAS requirements:
    (1) Sealed bid contracts.
    (2) Negotiated contracts and subcontracts not in excess of $35 
million. For purposes of this paragraph (b)(2), an order issued by one 
segment to another segment shall be treated as a subcontract.
    (3) Contracts and subcontracts with small businesses.
    (4) Contracts and subcontracts with foreign governments or their 
agents or instrumentalities or, insofar as the requirements of CAS 
other than 9904.401 and 9904.402 are concerned, any contract or 
subcontract awarded to a foreign concern.
    (5) Contracts and subcontracts (or the portion of a contract or 
subcontract) in which the price is set by law or regulation.
    (6) Contracts and subcontracts (or the portion of a contract or 
subcontract) for the acquisition of commercial products or commercial 
services.
    (7) Subcontractors under the NATO PHM Ship program to be performed 
outside the United States by a foreign concern.
    (8) Firm-fixed-price contracts or subcontracts (or the portion of a 
contract or subcontract) awarded on the basis of adequate price 
competition without submission of certified cost or pricing data.
    (c) Application of paragraph (b) exemptions to indefinite delivery 
contracts shall be determined as follows:
    (1) Multiple-award indefinite delivery contracts. The exemptions 
listed in paragraph (b) shall be determined at the time of award of any 
individual task or delivery order, and shall use the ceiling value of 
the individual task or deliver order to determine if the monetary 
threshold in (b)(2) has been met.
    (2) Single-award indefinite delivery contracts. The exemptions 
listed in paragraph (b) shall be determined at the time of award of the 
indefinite delivery contract, and shall use the ceiling value of the 
indefinite delivery contract to determine if the monetary threshold in 
(b)(2) has been met. An entire single-award indefinite delivery 
contract is exempt if it only provides for the ordering of commercial 
products or commercial services, or only provides for ordering on a 
firm-fixed-price basis and the indefinite delivery contract was awarded 
on the basis of adequate price competition without the submission of 
certified cost or pricing data.


0
3. Amend section 9903.201-2 by:
0
a. Removing ``$50 million'', wherever it appears, and adding, in its 
place, the text ``$100 million''; and
0
b. Adding paragraphs (b)(4) and (5).
    The additions read as follows


9903.201-2  Types of CAS coverage.

* * * * *
    (b) * * *
    (4) Contractors or subcontractors subject to full CAS coverage 
based on the $50 million threshold in effect prior to October 1, 2026 
may transition the affected contracts or subcontracts to modified 
coverage at the start of the business unit's next full cost accounting 
period beginning on or after October 1, 2026, provided the business 
unit:
    (i) Has no unresolved CAS noncompliances; and
    (ii) Does not meet the criteria for full CAS coverage using the 
$100 million threshold in effect as of October 1, 2026.
    (5) Contractors or subcontractors eligible for modified coverage 
based on the criteria in paragraph (b)(4) of this section may use this 
status for determining and certifying eligibility for modified coverage 
for new solicitations and awards on or after October 1, 2026.


9903.201-3  [Amended]

0
4. Section 9903.201-3 is amended by removing ``$50 million'', wherever 
it appears, and adding, in its place, the text ``$100 million''.


9903.201-4  [Amended]

0
5. Section 9903.201-4 is amended by removing ``$50 million'', wherever 
it appears, and adding, in its place, the text ``$100 million''.


9903.201-5  [Amended]

0
6. Section 9903.201-5 is amended in paragraph (a) by removing ``$15 
million'', and adding, in its place, the text ``$100 million''.


9903.202-1  [Amended]

0
7. Section 9903.202-1 is amended by:
0
a. Removing ``$50 million'', wherever it appears, and adding, in its 
place, the text ``$100 million'';
0
b. In paragraph (b)(2) removing the text ``Any company which, together 
with its segments,'', and adding, in its place, the text ``Any business 
unit or segment,''.
0
c. Removing and reserving paragraph (c).

[FR Doc. 2026-17901 Filed 8-31-26; 8:45 am]
BILLING CODE 3110-01-P


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