Summary: Testimony was given concerning the need to establish an administrative body with cognizance over cost accounting standards. The standards are critical to the government acquisition process; however, the environment in which the standards exist continues to change while the standards remain fixed. Without the former Cost Accounting Standards Board (CASB), there is an absence of authority to grant exemptions or waivers to standards, and inflationary factors may dictate the desirability of modifying the standards. There are also questions which arise concerning the interpretation of the standards. In testimony, GAO recently recommended that the Comptroller General be authorized to perform duties and functions similar to those of CASB aided by an advisory board. This could be accomplished at minimum expense to the government; therefore, GAO does not consider it essential to establish a separate board. H.R. 5480 proposes to reestablish CASB and authorize it to utilize personnel from the federal government. Although GAO does not consider a new board necessary, it would concede that the proposed legislation provides a structure for accomplishing what needs to be done, and it would support the legislation rather than allow the existing hiatus to remain unattended.
