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

Published

Sep 1, 2026

Effective

Oct 1, 2026

Citation

91 FR 56056

Agencies

OFFICE OF MANAGEMENT AND BUDGET, Office of Federal Procurement Policy

Final rule.

Summary

The Office of Management and Budget, working with the Cost Accounting Standards Board, has issued a final rule that raises the dollar amounts at which federal contractors must follow the Cost Accounting Standards (CAS). The change is meant to reduce the administrative burden on smaller businesses while still ensuring that larger contracts are subject to consistent cost‑accounting rules. The rule also expands the ability of individual agencies to grant waivers and clarifies how the thresholds apply to indefinite‑delivery contracts, which are agreements that do not specify a fixed quantity or delivery schedule up front. The regulation applies to any company that does business with the federal government and whose contracts reach the newly‑set monetary thresholds. It affects all federal agencies that rely on CAS, as well as the contractors and subcontractors that must comply with those standards. By increasing the thresholds, fewer contracts will trigger CAS requirements, but those that do will be subject to the same accounting discipline. The final rule was published in the Federal Register on September 1, 2026 (91 FR 56056) and becomes effective on October 1, 2026. With the rule now final, the public comment period has closed, and federal agencies are expected to update their procurement policies and inform contractors of the new limits. Contractors with existing contracts that fall under the revised thresholds must assess whether they need to adopt CAS provisions or seek an agency waiver under the expanded authority.

AI-generated summary — verify against the Federal Register text.

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