Matters related to Department of Defense use of cost accounting standards

(a) Reduction or elimination of CAS (1) In general Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall— (A) identify actions necessary to streamline requirements for compliance with the cost accounting standards established under section 1502 of title 41, United States Code (in this section referred to as CAS), in the performance of a contract with the Department of Defense; and (B) reduce or eliminate such requirements under the circumstances described in paragraph (2). (2) Circumstances described The circumstances described in this paragraph are as follows: (A) With respect to an action to eliminate compliance with CAS, if reliance on a similar requirement under generally accepted accounting principles (in this section referred to as GAAP) would materially achieve uniformity and consistency in cost accounting with respect to such elimination without bias or prejudice to parties to a contract. (B) If other existing requirements in guidance or regulation will sufficiently protect the interests of the Secretary of Defense in the oversight of cost contracts. (C) If such requirement is no longer necessary or appropriate. (b) Assessment of GAAP To meet Department of Defense needs (1) In general The Secretary of Defense shall conduct an assessment of the steps necessary to enable the use of GAAP instead of CAS as the baseline for standards of financial accounting and reporting for the contracts of the Department of Defense. Such assessment shall include— (A) an identification of needed changes to law, regulation, or policy to enable the Secretary to eliminate the use of CAS and implement the use of GAAP as such baseline; and (B) an identification any Department-specific standards that would be required in addition to GAAP to support the unique requirements of defense contracts. (2) Report Not later than 180 days after the date of the enactment of this Act, the Secretary shall submit to the congressional defense committees a report on the findings of the assessment required by paragraph (1), along with any recommended actions for Congress to reduce or eliminate requirements for compliance with CAS.