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Clauses · FAR · Pricing and audit

FAR 52.230-4 Disclosure and Consistency of Cost Accounting Practices—Foreign Concerns

Does the regulation require it to flow down?

Yes

(d): include the substance in all negotiated subcontracts above the lower CAS threshold (FAR 30.201-4(b)); a sub under a different type of CAS coverage gets the corresponding 48 CFR 9903.201-2 clause; those exempted by 9903.201-1 get none

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 and 9904.402 — estimating matched to accumulation and reporting, and no cost allocated twice for the same purpose

      FAR 52.230-4(a)(1)

  2. Something you write

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

    • A written disclosure of 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 52.230-4(a)(2)

When it is used

Replaces full CAS when the contractor is a foreign concern (unit outside the US): requires only CAS 9904.401 and 9904.402 (estimate/accumulate consistency and no double-charging). Flows down to negotiated subs above the lower CAS threshold ($2.5M), with the 9903.201-1 exemptions. For the typical American sub it shows up by template mistake or because there's a foreign lower-tier in the chain.

Read closely

The clause is written for a foreign business unit. A US company handed it is looking at FAR 52.230-2 or FAR 52.230-3 territory instead, or at the 48 CFR 9903.201-1(b)(3) small business exemption, and the mismatch is worth putting to the buyer before anything is built.

The 8 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 240155CORPDOC 4A — FAR/DFARS Flowdown Provisions for Cost-Reimbursement/T&M Subcontracts under a DoD Prime ContractLockheed Martinline 261233RTX Flowdown of U.S. Government Contract Clauses Under U.S. Government ContractsRTXline 1289105Raytheon TC-002 — Supplement 1: Government Contract Provisions from the FARRTXline 307255GD Mission Systems SCM-TMP-005 — General Provisions, Firm Fixed Price PO under U.S. Government Contract (Non-Commercial)General Dynamicsline 1068243GD Mission Systems SCM-TMP-048 — T&M Purchase Orders for Non-Commercial Items in Support of a U.S. Government ContractGeneral Dynamicsline 1989240L3Harris 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 638

Source: acquisition.gov, FAR 52.230-4 and 30.201-4; 48 CFR 9903.201-1 (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.