Cost Accounting Standards

The Cost Accounting Standards (CAS) is a series of statutory accounting rules developed by the Federal Government and imposed on contractors when certain applicability criteria are met. These accounting rules generally govern the allocation or assignment of costs to government contracts, which directly influence a government contractor’s pricing and cost accounting practices. Failure to comply with CAS, when applicable, can lead a company into potential disputes or litigation with the Government as well as cause potentially significant financial losses on contracts.

Navigant Consulting assists contractors with all aspects of operating within a CAS-covered contracting environment. Prior to contract award or applicability of CAS coverage, we assess cost accounting system capabilities and practices for adequacy and compliance with CAS requirements. We identify compliance gaps and recommend a range of potential corrective actions. In addition, we evaluate alternative indirect cost allocation structures to help align cost accounting system processes and capabilities with strategic business objectives. We also help our clients document their cost accounting practices, including preparing and submitting required disclosures to the government (i.e., CASB Disclosure Statements).