Contract Administration Services (CAS) Surcharge

CAS is comprised of three basic elements:

1. quality assurance and inspection;

2. contract administration management; and

3. contract audit.

For cases implemented on or after October 1, 2002, that have contracts administered overseas, an additional element (OCONUS CAS) applies.

For United States Army Corps of Engineers (USACE) contracts, quality assurance and inspections and other contract administrative services costs are included in its supervision and administration costs charged to the case line, so CAS(1) and CAS(2) do not apply to USACE.

For Parts and Repair Ordering System II (PROS) Program, full administration of PROS II is provided through a contracted program office and no additional services for contract administration, quality assurance or contract audit are provided, so CAS(1), CAS(2), and CAS(3) do not apply for PROS II Program.

For U.S. Air Force Security Assistance and Cooperation (AFSAC)-managed case lines with design and construction contracts that are assigned to the Air Force Installation Contracting Center (AFICC), quality assurance and inspection and contract administration management costs are included in the contract and charged to the case line, so CAS(1) and CAS(2) do not apply to AFSAC-managed case lines with design and construction contracts that are assigned to AFICC. AFSAC will manually override CAS(1) and CAS (2) elements in DSAMS to reflect NA.

Included in value of procurement line items (Source of Supply (SoS) of "P" or "X") on the LOA. A surcharge applies to each element.

May be waived if reciprocal agreements exist.

For USACE cases:

Implemented on or after February 1, 2020, apply a surcharge of:

• 0.10% for contract audit

Implemented on or after October 1, 2002, but before February 1, 2020, apply a surcharge of:

• 0.20% for contract audit

Implemented before October 1, 2002, apply a surcharge of:

• 0.50% for contract audit

For PROS II Program Lines:

Implemented on or after April 18, 2005, do not apply any CAS components

Implemented on or after October 1, 2002, but before April 18, 2005, the following surcharge(s) apply:

• 0.50% quality assurance and inspection

• 0.50% contract administration management

• 0.50% contract audits

For AFSAC-managed case lines with design and construction contracts assigned to AFICC:

Implemented on or after April 28, 2023:

• 0.10% for contract audit

• For contracts administered overseas, an additional 0.20% (OCONUS CAS) applies to the entire case. (For contracts administered overseas (by permanent-party DCMA employees), an additional 0.20% (OCONUS CAS) applies to the entire case.)

Implemented on or after February 1, 2020, but before April 28, 2023 the following surcharge(s) apply:

• 0.45% quality assurance and inspection

• 0.45% contract administration management

• 0.10% contract audit

• For contracts administered overseas, an additional 0.20% (OCONUS CAS) applies to the entire case. (For contracts administered overseas (by permanent-party DCMA employees), an additional 0.20% (OCONUS CAS) applies to the entire case.)

Implemented on or after December 1, 2014, but before February 1, 2020, the following surcharge(s) apply:

• 0.50% quality assurance and inspection

• 0.50% contract administration management

• 0.20% contract audit

• For contracts administered overseas, an additional 0.20% (OCONUS CAS) applies to the entire case. (For contracts administered overseas (by permanent-party DCMA employees), an additional 0.20% (OCONUS CAS) applies to the entire case.)

Implemented on or after October 1, 2002, but before December 1, 2014, the following surcharge(s) apply:

• 0.65% quality assurance and inspection

• 0.65% contract administration management

• 0.20% contract audit

• For contracts administered overseas, an additional 0.20% (OCONUS CAS) applies to the entire case. (For contracts administered overseas (by permanent-party DCMA employees), an additional 0.20% (OCONUS CAS) applies to the entire case.)

Implemented before October 1, 2002, the following surcharge(s) apply:

• 0.50% quality assurance and inspection

• 0.50% contract administration management

• 0.50% contract audit

For non-USACE cases, non-AFSAC-AFICC lines, and non-PROS II lines:

Implemented on or after February 1, 2020, the following surcharge(s) apply:

• 0.45% quality assurance

• 0.45% contract administration management

• 0.10% contract audits

• For contracts administered overseas, an additional 0.20% (OCONUS CAS) applies to the entire case. (For contracts administered overseas (by permanent-party DCMA employees), an additional 0.20% (OCONUS CAS) applies to the entire case.)

Implemented on or after December 1, 2014, but before February 1, 2020, the following surcharge(s) apply:

• 0.50% quality assurance and inspection

• 0.50% contract administration management

• 0.20% contract audits

• For contracts administered overseas, an additional 0.20% (OCONUS CAS) applies to the entire case. (For contracts administered overseas (by permanent-party DCMA employees), an additional 0.20% (OCONUS CAS) applies to the entire case.)

Implemented on or after October 1, 2002, but before December 1, 2014, the following surcharge(s) apply:

• 0.65% quality assurance and inspection

• 0.65% contract administration management

• 0.20% contract audits

• For contracts administered overseas, an additional 0.20% (OCONUS CAS) applies to the entire case. (For contracts administered overseas (by permanent-party DCMA employees), an additional 0.20% (OCONUS CAS) applies to the entire case.)

Implemented before October 1, 2002, the following surcharge(s) apply:

• 0.50% quality assurance and inspection

• 0.50% contract administration management

• 0.50% contract audits

DFAS Indianapolis

AECA, section 21(h) (22 U.S.C. 2761(h)) and DoD FMR, Volume 15, Chapter 7 (Jan 2021), paragraph 071603

BPC: Applicable CAS charges are no different than FMS cases. However, effective 14 Aug 2020, BPC Title 10-funded cases will not be assessed the CAS Surcharge.