1
So in original. Probably should be followed by “of”.
$35,000,000, as adjusted in accordance with applicable requirements of law, including requirements relating to inflation in Historical and Revision Notes |
|---|
Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|
1502(a) | 41:422(f)(1), (3). | Pub. L. 93–400, § 26(f), as added Pub. L. 100–679, § 5(a), Nov. 17, 1988, 102 Stat. 4060; Pub. L. 103–355, title II, § 2453, title VIII, § 8301(d), Oct. 13, 1994, 108 Stat. 3326, 3397; Pub. L. 104–106, title XLII, § 4205, title XLIII, § 4321(h)(4), Feb. 10, 1996, 110 Stat. 656, 675; Pub. L 106–65, title VIII, § 802(a), (b), Oct. 5, 1999, 113 Stat. 701; Pub. L 109–163, div. A, title VIII, § 822, Jan. 6, 2006, 119 Stat. 3386. |
1502(b)(1) | 41:422(f)(2), (4). | |
1502(b)(2) | 41:422(f)(4). | |
1502(b)(3) | 41:422(f)(5). | |
1502(c) | 41:422(g)(1). | Pub. L. 93–400, § 26(g), (h)(1), as added Pub. L. 100–679, § 5(a), Nov. 17, 1988, 102 Stat. 4061. |
1502(d) | 41:422(g)(2) (1st, 2d sentences). | |
1502(e) | 41:422(g)(2) (last sentence). | |
1502(f) | 41:422(h)(1). | |
1502(g) | 41:422(g)(3). | |
In subsection (a)(1), the word “make” is omitted as being included in “prescribe”.
In subsection (b)(2)(A), the word “categories” is omitted as being included in “classes”.
In subsection (b)(3)(A)(ii), the words “as in effect on or after the effective date of this paragraph” are omitted as obsolete.
Amendments
2025—Subsec. (b)(1)(B). [Pub. L. 119–60, § 1806(d)(1)(A)], substituted “$35,000,000, as” for “of the amount set forth in section 3702(a)(1)(A) of title 10 as the amount is” and inserted “, including requirements relating to inflation in section 1908 of this title” after “law”.
Subsec. (b)(1)(C)(i), (ii). [Pub. L. 119–60, § 1806(d)(1)(B)(i)], inserted “(or the portion of a contract or subcontract)” after “a contract or subcontract”.
Subsec. (b)(1)(C)(iii). [Pub. L. 119–60, § 1806(d)(1)(B)(iii)(I)], inserted “(or the portion of such contract or subcontract)” after “a firm, fixed-price contract or subcontract”.
Subsec. (b)(1)(C)(iv). [Pub. L. 119–60, § 1806(d)(1)(B)(ii)], (iii)(II), (iv), struck out cl. (iv) which read as follows: “a contract or subcontract with a value of less than $7,500,000 if, when the contract or subcontract is entered into, the segment of the contractor or subcontractor that will perform the work has not been awarded at least one contract or subcontract with a value of more than $7,500,000 that is covered by the standards.”
Subsec. (b)(3)(A). [Pub. L. 119–60, § 1806(d)(2)], which directed the insertion of “, as adjusted for inflation in accordance with section 1908 of this title,” after “$100,000,000” in “in paragraph (3), subparagraph (A)” without specifying the Code title or section to be amended, was executed by making the insertion in subsec. (b)(3)(A) of this section, to reflect the probable intent of Congress.
Subsec. (c)(3), (4). [Pub. L. 119–60, § 1806(e)], struck out par. (3) and redesignated par. (4) as (3). Prior to amendment, par. (3) related to a requirement for advanced notice of proposed rulemaking.
2021—Subsec. (b)(1)(B). [Pub. L. 117–81] substituted “section 3702(a)(1)(A)” for “section 2306a(a)(1)(A)(i)”.
2018—Subsec. (b)(1)(A). [Pub. L. 115–232, § 836(b)(1)(A)], substituted “commercial products or commercial services” for “commercial items”.
Subsec. (b)(1)(C)(i). [Pub. L. 115–232, § 836(b)(1)(B)], substituted “commercial product or commercial service” for “commercial item”.
Subsec. (b)(3)(A)(i). [Pub. L. 115–232, § 836(b)(1)(C)], substituted “commercial products or commercial services” for “commercial items”.
2016—Subsec. (b)(3)(A). [Pub. L. 114–328] substituted “$100,000,000” for “$15,000,000” in introductory provisions.
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by [Pub. L. 115–232] effective Jan. 1, 2020, subject to a savings provision, see [section 836(h) of Pub. L. 115–232], set out as an Effective Date of 2018 Amendment; Savings Provision note under section 453b of Title 6, Domestic Security.
Effective Date of 2016 Amendment
Amendment by [Pub. L. 114–328] effective Oct. 1, 2018, see [section 820(d) of Pub. L. 114–328], set out as a note under section 1501 of this title.
Effective Date of Amendment by [Pub. L. 106–65]; Regulations; Implementation; Construction
[Pub. L. 106–65, div. A, title VIII, § 802(c)]–(e), (g)–(i), Oct. 5, 1999, [113 Stat. 701], 702, provided that:“(c)
Regulation on Types of CAS Coverage.—
(1)
The Administrator for Federal Procurement Policy shall revise the rules and procedures prescribed pursuant to section 26(f) of the Office of Federal Procurement Policy Act ([former]
41 U.S.C. 422(f)) [now
41 U.S.C. 1502(a), (b)] to the extent necessary to increase the thresholds established in section 9903.201–2 of title 48 of the Code of Federal Regulations from $25,000,000 to $50,000,000.
“(2)
Paragraph (1) requires only a change of the statement of a threshold condition in the regulation referred to by section number in that paragraph, and shall not be construed as—
“(A)
a ratification or expression of approval of—
“(i)
any aspect of the regulation; or
“(ii)
the manner in which section 26 of the Office of Federal Procurement Policy Act [now
41 U.S.C. 1501 et seq.] is administered through the regulation; or
“(B)
a requirement to apply the regulation.
“(d)
Implementation.—
The Administrator for Federal Procurement Policy shall ensure that this section [see Tables for classification] and the amendments made by this section are implemented in a manner that ensures that the Federal Government can recover costs, as appropriate, in a case in which noncompliance with cost accounting standards, or a change in the cost accounting system of a contractor segment or subcontractor segment that is not determined to be desirable by the Federal Government, results in a shift of costs from contracts that are not covered by the cost accounting standards to contracts that are covered by the cost accounting standards.
“(e)
Implementation of Requirements for Revision of Regulations.—
(1)
Final regulations required by subsection (c) shall be issued not later than 180 days after the date of the enactment of this Act [Oct. 5, 1999].
“(2)
Subsection (c) shall cease to be effective one year after the date on which final regulations issued in accordance with that subsection take effect.
“(g)
Inapplicability of Standards to Certain Contracts.—
The cost accounting standards issued pursuant to section 26(f) of the Office of Federal Procurement Policy Act ([former]
41 U.S.C. 422(f)) [now
41 U.S.C. 1502(a), (b)], as amended by this section, shall not apply during fiscal year 2000 with respect to a contract entered into under the authority provided in chapter 89 of title 5, United States Code (relating to health benefits for Federal employees).
“(h)
Construction Regarding Certain Not-For-Profit Entities.—
The amendments made by subsections (a) and (b) [see Tables for classification] shall not be construed as modifying or superseding, nor as intended to impair or restrict, the applicability of the cost accounting standards described in section 26(f) of the Office of Federal Procurement Policy Act ([former]
41 U.S.C. 422(f)) [now
41 U.S.C. 1502(a), (b)] to—
“(1)
any educational institution or federally funded research and development center that is associated with an educational institution in accordance with Office of Management and Budget Circular A–21, as in effect on January 1, 1999; or
“(2)
any contract with a nonprofit entity that provides research and development and related products or services to the Department of Defense.
“(i)
Effective Date.—
The amendments made by subsections (a) and (b) [see Tables for classification] shall take effect 180 days after the date of enactment of this Act [Oct. 5, 1999], and shall apply with respect to—
“(1)
contracts that are entered into on or after such effective date; and
“(2)
determinations made on or after such effective date regarding whether a segment of a contractor or subcontractor is subject to the cost accounting standards under section 26(f) of the Office of Federal Procurement Policy Act ([former]
41 U.S.C. 422(f)) [now
41 U.S.C. 1502(a), (b)], regardless of whether the contracts on which such determinations are made were entered into before, on, or after such date.”
Regulations
[Pub. L. 119–60, div. A, title XVIII, § 1806(d)(3)], Dec. 18, 2025, [139 Stat. 1239], provided that: “Not later than 180 days after the date of the enactment of this Act [Dec. 18, 2025], the Administrator for Federal Procurement Policy shall issue such regulations as are necessary to implement the amendments made by this subsection [amending this section].”
Changes to Applicability of Full Cost Accounting Standards Coverage
[Pub. L. 119–60, div. A, title XVIII, § 1806(a)], Dec. 18, 2025, [139 Stat. 1237], provided that:“(1)
In general.—
Not later than 180 days after the date of the enactment of this Act [
Dec. 18, 2025], the Administrator for Federal Procurement Policy shall revise the rules and procedures prescribed pursuant to subsections (a) and (b) of
section 1502 of title 41, United States Code, to the extent necessary to increase the thresholds established in section 9903.201-2 of title 48, Code of Federal Regulation, from $50,000,000 to $100,000,000 (as adjusted for inflation in accordance with
section 1908 of title 41, United States Code).
“(2)
Department of defense.—
Not later than 120 days after the date of the enactment of this Act, the Secretary shall update the Department of Defense Supplement to the Federal Acquisition Regulation to require full compliance with cost accounting standards established under
section 1502 of title 41, United States Code, only for an entity or subsidiary of an entity that—
“(A)
received a single contract award under such cost accounting standards with a value equal to or greater than $100,000,000 (as adjusted for inflation in accordance with
section 1908 of title 41, United States Code); or
“(B)
received contracts during the cost accounting period that ended preceding the date of the report with a net value equal to or greater than $100,000,000 (as adjusted for inflation in accordance with
section 1908 of title 41, United States Code).”