DFARS Part 230 works alongside FAR Part 30 and the Cost Accounting Standards Board rules in 48 CFR chapter 99. This guide connects those frameworks to the facts your contracts and finance teams need.
Verify CAS coverage before you commit. Applicability, full or modified coverage, and a waiver are three different decisions.
Watch the DFARS Part 230 lesson
DFARS Part 230: Check the dated framework first
The CAS Board final rule published September 1, 2026 became effective October 1, 2026. It changed monetary thresholds, disclosure requirements, transition provisions, and treatment of indefinite delivery contracts. The DoD deviation index also lists Class Deviation 2026-O0006, Revision 1, dated July 30, 2026. Read the applicable current framework and actual acquisition documents together; an older checklist or source-page banner is not enough.
Determine applicability before coverage
Under the current 48 CFR 9903.201-1, negotiated contracts and subcontracts not in excess of $35 million are exempt. Evaluate the other exemptions, including small-business and specified commercial-acquisition coverage, rather than treating value as the only question. Some exemptions apply to portions of a contract or subcontract.
For multiple-award indefinite delivery contracts, the exemptions are determined when each task or delivery order is awarded, using the individual order ceiling for the monetary test. For single-award indefinite delivery contracts, the rule uses the contract award and contract ceiling, with additional conditions for an entirely exempt arrangement.
Separate modified coverage from an exemption
Current full-coverage criteria include a single CAS-covered award of $100 million or more, or at least $100 million in net CAS-covered awards in the preceding cost accounting period. Check the relevant business unit and award history. Modified coverage still carries defined consistency, allocation, unallowable-cost, and accounting-period requirements.
The October rule includes a transition route for certain units previously subject to full coverage under the $50 million threshold. It has conditions, including no unresolved CAS noncompliances, and specified timing. A new threshold does not automatically erase existing contractual responsibilities or authorize immediate accounting-practice changes.
Keep waiver authority visible
A waiver is a separate authorized Government decision. DFARS Part 230 addresses defense waiver authority and procedures. Internal management approval is not a Government waiver. Distinguish acquisition procedures in PGI from the contractor duties in the solicitation, clause, or agreement; do not invent a contractor reporting deadline from an agency reporting requirement.
A hypothetical example
A manufacturer that is not a small business considers a $40 million negotiated defense award. Sales calls it exempt because it is below $100 million. Finance assumes every defense award requires full coverage. Contracts tests applicable exemptions first, then checks the business unit and prior CAS-covered awards if coverage applies. If the opportunity is an order under a multiple-award contract, the team checks the order-level rule and actual order facts. This example illustrates a review process; it does not determine coverage for a real award.
DFARS Part 230 preparation checklist
- Record the proposed award and date.
- Identify the contract or order structure.
- Verify the relevant value.
- Document exemption facts.
- Identify the business unit.
- Verify prior CAS-covered award history.
- Collect clauses and applicable deviation references.
- Record the reviewer’s conclusion and any separate waiver or transition question.
Official sources and applicability
DFARS Part 230; DoD RFO class deviations; 48 CFR 9903.201-1; 48 CFR 9903.201-2; and CAS Board final rule, effective October 1, 2026. Sources reviewed November 5, 2026. Verify later changes and the actual acquisition documents.
Build your readiness baseline
Explore GovAssessment for a structured business-readiness baseline. It does not certify CAS compliance, approve an accounting system, or guarantee an award.
General education, not legal or accounting advice. Browse the DFARS series.
