Friday, August 20, 2010

Access to Recods - Statutory and Regulatory Requirements

Statutes, implementing regulations, and contract terms provide the Government access to contractors' books and records for purpose of audit. The definition of books and records is very broad and include policies, procedures, systems, management reports, personnel, minutes of board meetings, charters, bylaws, and any other information source which affects and reflects the incurrence, control, and allocation of costs to contracts. There needs to be some kind of nexus between the review or need and the nature of the records requested. If the data requested by the Government is not intuitively related to the audit/review being performed, you should inquire as to the propriety of the request. Government representatives are required to be ready to discuss the basis for the request, if asked (see CAM 1.504.3(a)).

The statutory and regulatory requirements that allow Government access to contractor books and records follow:
  • Statutory
    • 10 U.S.C. 2313(a) - Examination of Records of Contractors
    • 10 U.S.C. 2306a - Truth in Negotiations
    • 41 U.S.C. 422(k) - Cost Accounting Standards
  • Regulatory
    • FAR 15.209(b)(1) - Requires the audit clause in negotiated procurements
    • FAR 52.215-2 - The contract audit clause
    • FAR 15.408 Table 15-2 - Requirements for Cost or Pricing Data
    • FAR 52.215-20 and -21 - Requirements for Cost or Pricing Data
    • FAR 52.230-2 and -3 - Cost Accounting Standards
    • FAR 52-216-4 - Economic Price Adjustments
    • FAR 52.232-16 - Progress Payments

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