The Cost Accounting Standards (CAS) Board issued a final rule providing that time-and-materials and labor hour contracts for commercial items are exempt from CAS coverage. 72 Fed. Reg. 36367 (Jul. 3, 2007). The rule expands an existing CAS exemption for commercial items contracts that are firm fixed-price or fixed-price with economic price adjustment (where the price adjustment is not based on actual costs incurred). The rule went into effect on July 3, 2007.