CAS Board Meeting

CAS Board – 51st Meeting
January 13, 2009

Chairman Lesley Field, the Acting Administrator, Office of Federal Procurement Policy (OFPP), convened the 55th meeting of the Cost Accounting Standards (CAS) Board (CASB) on January 13, 2009 at 9:00 A.M.  The meeting was held in the White House Conference Center, 726 Jackson Place, Washington, DC.  CASB Members Mses. April Stephenson and Kathleen Turco, as well as Mr. Bruce Timman, were present.  Mr. Richard Wall was ill and unable to attend.  Also in attendance were Messrs. Raymond Wong, CASB Director; and Eric Shipley, CASB Staff.  Ms. Field departed the meeting shortly before the adjournment of the meeting.

Agenda Items:

CAS Pension Harmonization

Mr. Eric Shipley briefed the CASB on the public comments received in response to the publication of the Advance Notice of Proposed Rulemaking (ANPRM) in the Federal Register (73 FR 51261) on September 2, 2008.  The public comment period for the ANPRM had been extended to December 15, 2008 by a Federal Register publication (73 FR 72086) on November 26, 2008.  The public submitted 17 comments and two responders supplemented their comments.

The CASB reviewed a summary of the public comments.  After a lengthy discussion which recognized the complexities of some of the issues, the CASB directed that the CAS Pension Harmonization Working Group consult with the Cost Impact Working Group on those issues that have accounting aspects in addition to their actuarial aspects.  The CASB acknowledged that much of the analysis performed to date will provide a substantial basis for drafting the preamble for the Final Rule.  Because of the complexity and the scope of the interplay of the proposed changes to the ANPRM, the CASB discussed the merits of a second ANPRM.  The CASB directed the Staff to draft a second ANPRM (ANPRM II) for the CASB’s review and publication in the Federal Register. 

The CAS Overseas Exemption for Contracts Executed and Performed Entirely Outside of the United States (48 CFR 9903.201-1(b)(14))

Mr. Wong briefed the CASB on the draft Staff Discussion Paper (SDP) prepared on the CAS exemption for contracts executed and performed overseas (48 CFR 9903.201-1(b)(14)).  Section 823 of the National Defense Authorization Act for Fiscal Year 2009 requires the CASB to: (1) review the applicability of CAS to contracts and subcontracts which would be subject to CAS, but for the fact that they are executed and performed entirely outside the United States, and (2) determine whetherthe Government would benefit from the application of CAS to such contracts and subcontracts.  A report is due to Congress within 270 days of enactment (October 14, 2008) containing a copy of any proposed rulemaking to implement any CASB proposed revisions as a result of the review, or a detailed justification of why no revisions are proposed to the (b)(14) overseas exemption.

The CASB utilizes a statutory four-step rulemaking process to establish any new or revised Cost Accounting Standards.  As the (b)(14) overseas exemption is not a cost accounting standard, the Board determined that the CAS four-step rulemaking need not be utilized to review and promulgate any revisions to the (b)(14) overseas exemption.  After a lengthy discussion of the draft SDP, the CASB directed that a Notice of Request for Information on the (b)(14) overseas exemption be drafted for publication in the Federal Register to solicit public comments and facilitate fact-finding for the CAS (b)(14) overseas exemption.


The CASB Director, Mr. Wong, adjourned the meeting at 12:00 P.M.

Minutes submitted by Raymond J. M. Wong, July 13, 2009.