---
kind: "section"
citation: "48 C.F.R. § 30.602"
title: "48"
number: "30.602"
heading: "Materiality."
url: "https://uscodex.org/cfr/48/30.602"
---

# §30.602. Materiality.

- (a) In determining materiality, the CFAO shall use the criteria in [48 CFR 9903.305](/cfr/48/9903.305.md).
- (b) **A CFAO determination of materiality—**
  - (1) May be made before or after a general dollar magnitude proposal has been submitted, depending on the particular facts and circumstances; and
  - (2) **Shall be based on adequate documentation.**
- (c) **When the CFAO determines the cost impact is immaterial, the CFAO shall—**
  - (1) Make no contract adjustments and conclude the cost impact process;
  - (2) Document the rationale for the determination; and
  - (3) **In the case of noncompliance issues, inform the contractor that—**
    - (i) The noncompliance should be corrected; and
    - (ii) If the noncompliance is not corrected, the Government reserves the right to make appropriate contract adjustments should the cost impact become material in the future.
- (d) For required, unilateral, and desirable changes, and CAS noncompliances, when the amount involved is material, the CFAO shall follow the applicable provisions in 30.603, 30.604, 30.605, and 30.606.

## Notes

### Amendments

[70 FR 11753, Mar. 9, 2005, as amended at 73 FR 10967, Feb. 28, 2008; 85 FR 67615, Oct. 23, 2020]

### Source

Source: 70 FR 11753, Mar. 9, 2005, unless otherwise noted.

### Authority

Authority : 41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

### Source

Source: 57 FR 39587, Aug. 31, 1992, unless otherwise noted.

### Amendments

[70 FR 11753, Mar. 9, 2005, as amended at 73 FR 10967, Feb. 28, 2008; 85 FR 67615, Oct. 23, 2020]