Today more than ever, the government must ensure that it spends money wisely and eliminates waste and abuse of taxpayer dollars. With approximately one out of every ten dollars of Federal government spending going to contractors, it is imperative that contract actions result in the best value for the taxpayer.

The Office of Federal Procurement Policy (OFPP) in the Office of Management and Budget plays a central role in shaping the policies and practices federal agencies use to acquire the goods and services they need to carry out their responsibilities. OFPP was established by Congress in 1974 to provide overall direction for government-wide procurement policies, regulations and procedures and to promote economy, efficiency, and effectiveness in acquisition processes. OFPP is headed by an Administrator who is appointed by the President and confirmed by the Senate.

Policy Information

Policy Letters
Cost Accounting Standards Board
Contractor Employee Compensation Cap
Federal Activities Inventory Reform (FAIR) Act


Acquisition Community Connection
Chief Acquisition Officers Council (CAOC)
Defense Acquisition University (DAU)
Federal Acquisition Institute (FAI)
Federal Acquisition Regulatory Council
Federal Procurement Data System (FPDS)The Federal Register

Office of Federal Procurement Policy Guides

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Office of Federal Procurement Policy Memoranda
Office of Federal Procurement Policy Policy Letters

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Office of Federal Procurement Policy Reports 

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Office of Federal Procurement Policy Other Policy

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Cost Accounting Standards Board

The Cost Accounting Standards Board (CAS Board) has the exclusive authority to make, promulgate, and amend standards and interpretations designed to achieve uniformity and consistency in the cost accounting practices governing the measurement, assignment, and allocation of costs to contracts with the United States Government. The CAS Board is an independent statutorily-established Board (41 U.S.C. 1501 et seq.) consisting of five members: the Administrator for Federal Procurement Policy, who serves as the chairman, and four members with experience in Government contract cost accounting, two from the Federal government (DOD and GSA), one from industry, and one from the accounting profession.

The Board’s regulations are codified at 48 CFR, Chapter 99. The standards are mandatory for use by all executive agencies and by contractors and subcontractors in estimating, accumulating, and reporting costs in connection with pricing and administration of, and settlement of disputes concerning, all covered negotiated prime contract and subcontract procurements with the United States Government. Covered contracts and subcontracts are those in excess of $750,000, provided that, at the time of award, the contractor or subcontractor is performing any CAS-covered contracts or subcontracts valued at $7.5 million or greater. As a result of changes made by section 811 the National Defense Authorization Act for FY 2018, the $750,000 threshold will be raised to $2 million for contracts awarded after June 30, 2018.


  • Exemption from Cost Accounting Standards for Firm Fixed-Price Contracts and Subcontracts Awarded Without Submission of Certified Cost or Pricing Data (i.e.,(b)(15)exemption)
Contractor Employee Compensation Cap
 Federal Activities Inventory Reform (FAIR) Act

The FAIR Act (31 U.S.C. 501 note) and Office of Management and Budget (OMB) Circular A-76 require executive agencies, with certain exceptions, to prepare inventories of the commercial and inherently governmental activities performed by their federal employees. Development of workforce inventories can help agencies gain a better understanding of how Federal employee labor is being used to carry out the agency’s mission and improve human capital resource distribution. Inventories are available on agency websites or through the following links.

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