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CAS Board - 47th Meeting
February 6, 2007

The 47th meeting of the Cost Accounting Standards (CAS) Board took place in the Eisenhower Executive Office Building, 1750 Pennsylvania Avenue, Washington, DC, on February 6, 2007.  The meeting convened at 9:00 A.M.  The Board, consisting of the Chair, Mr. Paul A. Denett, Administrator for the Office Federal Procurement Policy (OFPP), and Mses. April Stephenson and Kathleen Turco as well as Messrs. Bruce Timman and Richard Wall were in attendance.  Also in attendance for the entire meeting were Messrs. Rob Burton, Deputy Administrator, OFPP, and Ms. Laura Auletta, CAS Board Manager, OFPP, and Mr. David Capitano, CAS Board Staff.  Dr. Louis I. Rosen was at the meeting to provide an historical perspective on the CAS Board based on his experiences with the original Board when it was at GAO.  He left the meeting after his presentation.

After Dr. Rosen left the meeting, Ms. Auletta briefly addressed the rules and procedures governing the Board at 48 CFR 9901.301-317.      

DoD Request for CAS Waiver

Mr. Capitano, in his capacity as a DoD employee, briefed the Board on a DoD CAS waiver request regarding insurance in the Gulf Coast region for contracts with Northrop Grumman Shipyard Systems.  After a full briefing of the DoD business case, and review of proposed cost accounting practices, the Board unanimously approved the waiver.

Review of Items Carried Over from the previous Board

Pension Protection Act (PPA).  The Board directed the CAS Board Manager to work with a government pension expert(s) to provide a briefing paper to the Board at the next meeting that describes the differences between the PPA and CAS 412/413, as well as any identifiable issues related to such differences.  The Board agreed to a due date of about March 14, 2007, to enable the members to be prepared for a discussion at the April 2007 meeting.

Proposed Rules.  The Board directed the staff to review and evaluate public comments on previously issued proposed rules.  The staff is to complete the analysis by the next meeting for the proposed rules on time-and-material (T&M) and labor-hour contracts for commercial items and the adjustment of thresholds for inflation (previously published at 71 FR 313 and 70 FR 73423, respectively). 

Final Rules. The staff and Board agreed that a draft final rule for Alternative Disclosure Statements for United Kingdom Contractors and a draft proposed rule for the Contract Clause for Foreign Concerns should be prepared by the staff and submitted to the Board for the next meeting.

Initiatives.  The Board directed the staff to prioritize and provide a briefing at the next meeting on the following initiatives undertaken by the previous Board:

Employee Stock Ownership Plans
CAS 403, Operating Revenue Threshold
Catastrophic Losses
CAS Exemption for Contracts Executed and Performed Outside the United States
Computing the Cost Impact of a Change in Accounting Practice
CAS Comprehensive Review

The Board’s next meeting will be April 4, 2007 at 9:00 AM in the Eisenhower Executive Office Building.  The staff agreed to provide the members meeting preparation material at least one week prior to the meeting.

The Chair, Mr. Denett, adjourned the meeting at 11:45 A.M.
Minutes submitted, by Laura Auletta, February 8, 2007.