July 15, 1996

Valerie:

I think your question is directed toward the CAS
Disclosure Statement requirement for educational
institutions contained in 48 CFR Sec. 9903.202-1(f)(2)(iii).

This particular section of the federal procurement
regulations is supposed to be included in negotiated
government contracts with educational institutions entered
into after January 1, 1996 (unless the contracts are
CAS-exempt).  It requires educational institutions that
received "net awards of negotiated prime contracts and
subcontracts subject to CAS totaling $25 million or more in
their most recent cost accounting period" to submit a
Disclosure Statement before award of their first
CAS-covered contracts in the immediately following cost
accounting period.

If this is what you're asking about, let me direct your attention
to a couple of things.  First, I think the awards that count
toward the $25 million threshold are limited to contract
awards.  Grant awards (what the feds call "financial
assistance") don't count.  Contract awards are more likely to
be fully funded instead of being funded for one year with
"recommended" out year funding.  So, the problem of how to
account for incremental funding awards may not be as great
as one might think.

Second, the contract awards that count toward the $25
million threshold are limited to so-called "CAS covered"
contracts.  FAR 9903.201-1 has a list of what is and isn't
CAS-covered.  Among other things, contracts under
$500,000 aren't covered and so needn't be counted.

Third, subcontracts count, but I would think that subawards of
financial assistance (e.g. some subcontracts under prime
grants) probably don't count.

Fourth, and this is just speculation, since the regulation links
the threshold to the dollar amount of contracts received "in a
cost accounting period", I suppose you could argue that
only those contract award costs that would be deemed
received for cost accounting purposes (e.g. contract
revenue, including deferred revenue) need to be included in
the threshold calculation.

Jim Simpson
General Counsel
California Public Health Foundation
2001 Addison St., Ste. 210
Berkeley, CA 94704
(510) 644-8200
FAX (510) 644-9319
xxxxxx@publichealth.org