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Clauses · FAR · Pricing and audit

FAR 52.230-5 Cost Accounting Standards—Educational Institution

Does the regulation require it to flow down?

Yes

(d): include the substance in negotiated subcontracts above the lower CAS threshold (FAR 30.201-4(b)); a sub under different CAS coverage uses the applicable clause from 48 CFR 9903.201-4; 9903.201-1 exemptions apply

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 that complies with every standard in 48 CFR 9905, the cost accounting standards written for educational institutions

      FAR 52.230-5(a)(3)

  2. Something you write

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

    • A written disclosure of the institution's cost accounting practices, the Disclosure Statement form DS-2

      Owed where the business unit of the educational institution is one required to submit a Disclosure Statement, which is the condition (a)(1) opens with

      FAR 52.230-5(a)(1)

When it is used

The CAS version for institutions of higher education (2 CFR 200 / 20 U.S.C. 1001): complies with the standards of 48 CFR 9905 (not 9904). Shows up in the corpus because R&D contracts flow down through universities. Flows down to negotiated subs above the lower CAS threshold ($2.5M); a sub that isn't an educational institution gets the clause for its own coverage type (9903.201-4), and the 9903.201-1 exemptions apply. (Trigger corrected 2026-08-05, backlog item 12: this was the one member of the family with no small-business exemption encoded, so a small educational institution above $2.5M came out covered. Its own summary already said 'the 9903.201-1 exemptions apply'. Prescription verified against acquisition.gov, FAR 30.201-4(e). 30.201-4(e) also excludes contracts to be performed by an FFRDC (9903.201-2(c)(5)) and those to which 9903.201-2(c)(6) applies; neither has a profile field.)

Read closely

For a company the real-world case is meeting this clause from the other side of the table — subcontracting to a covered university, which files the DS-2 and opens its records. A company that received the clause itself is looking at FAR 52.230-2 or FAR 52.230-3 territory instead, or at the 48 CFR 9903.201-1(b) exemptions.

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 243155CORPDOC 4A — FAR/DFARS Flowdown Provisions for Cost-Reimbursement/T&M Subcontracts under a DoD Prime ContractLockheed Martinline 264233RTX Flowdown of U.S. Government Contract Clauses Under U.S. Government ContractsRTXline 1239105Raytheon TC-002 — Supplement 1: Government Contract Provisions from the FARRTXline 296255GD Mission Systems SCM-TMP-005 — General Provisions, Firm Fixed Price PO under U.S. Government Contract (Non-Commercial)General Dynamicsline 1069243GD Mission Systems SCM-TMP-048 — T&M Purchase Orders for Non-Commercial Items in Support of a U.S. Government ContractGeneral Dynamicsline 2052240L3Harris LGL-50.F1 — General T&C and Flowdown Clauses for Other Than Commercial Products/Services under a U.S. Government ContractL3Harrisline 2110273BAE Systems Inc. USGOVA — FAR/DFARS Flow Down Provisions for Subcontracts/Purchase Orders under a U.S. Government (DoD) Prime ContractBAE Systemsline 648

Source: acquisition.gov, FAR 52.230-5 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.