Researching Posted March 22, 2011 Report Share Posted March 22, 2011 The DCAA audit manual states the following. What would be considered "new work" that would require treatment as a new contract for CAS purposes? 8-103.4 Effect of Contract Modifications Contract modifications made under the terms and conditions of the contract do not affect its status with respect to CAS applicability. Therefore, if CAS was applicable to the basic contract, it will apply to the modification. Conversely, if the basic contract was exempt from CAS, the modification will also be exempt regardless of the amount of the modification. However, if the contract modification adds new work it must be treated for CAS purposes as if it were a new contract. In this case, if the modification exceeds the threshold, it will be CAS-covered (see CAS Working Group Paper 76-2). Link to comment Share on other sites More sharing options...
Retreadfed Posted March 22, 2011 Report Share Posted March 22, 2011 The DCAA audit manual states the following. What would be considered "new work" that would require treatment as a new contract for CAS purposes?8-103.4 Effect of Contract Modifications Contract modifications made under the terms and conditions of the contract do not affect its status with respect to CAS applicability. Therefore, if CAS was applicable to the basic contract, it will apply to the modification. Conversely, if the basic contract was exempt from CAS, the modification will also be exempt regardless of the amount of the modification. However, if the contract modification adds new work it must be treated for CAS purposes as if it were a new contract. In this case, if the modification exceeds the threshold, it will be CAS-covered (see CAS Working Group Paper 76-2). Essentially, DCAA is referring to an out of scope change that would be considered a new procurement. Link to comment Share on other sites More sharing options...
Researching Posted March 22, 2011 Author Report Share Posted March 22, 2011 Essentially, DCAA is referring to an out of scope change that would be considered a new procurement. Thank you! How do they define "out of scope"? Link to comment Share on other sites More sharing options...
Retreadfed Posted March 22, 2011 Report Share Posted March 22, 2011 Thank you! How do they define "out of scope"? They don't. General contract interpretation principles are applied when making this determination. Link to comment Share on other sites More sharing options...
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