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Clauses · FAR · Pricing and audit

FAR 52.230-3 Disclosure and Consistency of Cost Accounting Practices

Does the regulation require it to flow down?

Yes

(d): include the substance in all negotiated subcontracts, except (b); does not flow down to subs below the lower CAS threshold (FAR 30.201-4(b)), to subs under a different type of CAS coverage, or to those exempted by 48 CFR 9903.201-1(b)

Form
substance (except paragraph (b))
Reaches
all tiers

Checked against acquisition.gov on 2026-08-04 · edition JUN 2020 · base v0.9.3 Read the text ↗

What it makes you produce

2 items for your checklist, slowest first.

  1. A program you have to be running

    You are either running it or you are not, and what the prime asks for is the date it started.

    • Cost accounting consistent with 48 CFR 9904.401, 9904.402, 9904.405 and 9904.406 — estimating matched to accumulation and reporting, no cost charged twice by two routes, unallowables handled, and one consistent accounting period

      FAR 52.230-3(a)(1)

  2. Something you write

    Days to weeks, and nobody outside your company has to agree to it.

    • A written disclosure of your cost accounting practices under 48 CFR 9903.202-1 through 9903.202-5

      Owed where the business unit is one required to submit a Disclosure Statement

      FAR 52.230-3(a)(2)

When it is used

The light version of CAS: negotiated CAS-covered contracts with MODIFIED coverage (above the threshold but below the 9903.201-2 full-coverage criteria). Requires only CAS 401, 402, 405, and 406. Flows down to negotiated subs above the lower CAS threshold ($2.5M), with the same 9903.201-1(b) exemptions — small business exempt at any dollar value.

Read closely

Four standards rather than nineteen, and a practice change only by negotiated agreement. Paragraph (d) leaves out subcontracts below the lower threshold at FAR 30.201-4(b), those under a different type of coverage, and those exempted by 48 CFR 9903.201-1(b) — the same exemption that answers FAR 52.230-2.

The 12 templates that name it, with the line
143CORPDOC 3A — FAR/DFARS Flowdown Provisions for Fixed Price Non-Commercial Items under a DoD Prime ContractLockheed Martinline 237155CORPDOC 4A — FAR/DFARS Flowdown Provisions for Cost-Reimbursement/T&M Subcontracts under a DoD Prime ContractLockheed Martinline 258233RTX Flowdown of U.S. Government Contract Clauses Under U.S. Government ContractsRTXline 1238105Raytheon TC-002 — Supplement 1: Government Contract Provisions from the FARRTXline 295166Northrop Grumman CTM-P-ST-001 — U.S. Government Firm Fixed Price Order (Not for Commercial Products and Services)Northrop Grummanline 843166Northrop Grumman CTM-P-ST-003 — U.S. Government T&M Order (Not for Commercial Products and Services)Northrop Grummanline 826168Northrop Grumman CTM-P-ST-004 — U.S. Government Cost Reimbursement Order (Not for Commercial Products and Services)Northrop Grummanline 965255GD Mission Systems SCM-TMP-005 — General Provisions, Firm Fixed Price PO under U.S. Government Contract (Non-Commercial)General Dynamicsline 1067243GD Mission Systems SCM-TMP-048 — T&M Purchase Orders for Non-Commercial Items in Support of a U.S. Government ContractGeneral Dynamicsline 1988240L3Harris LGL-50.F1 — General T&C and Flowdown Clauses for Other Than Commercial Products/Services under a U.S. Government ContractL3Harrisline 2109273BAE Systems Inc. USGOVA — FAR/DFARS Flow Down Provisions for Subcontracts/Purchase Orders under a U.S. Government (DoD) Prime ContractBAE Systemsline 633178AAR Component Services NY — U.S. Government Contract FAR and DFARS Clauses Incorporated by ReferenceAAR Corpline 1501

Source: acquisition.gov, FAR 52.230-3 and 30.201-4; 48 CFR 9903.201-1(b) (verified 2026-08-04)

This is research, not legal advice. It states what the regulation says about this clause and cites the paragraph behind it. It does not rule on your order, and it does not rule on whether a prime's markings are correct.