FAR 52.215-2 — Audit and Records — Negotiation
Gives the government (DCAA, agency IG) the right to examine contractor records relating to negotiated contracts, including indirect cost records, for up to 3 years after final payment.
When This Clause Applies
Required in negotiated contracts exceeding the simplified acquisition threshold.
What This Means for Contractors
Contractor must maintain records supporting cost claims, indirect rate proposals, and incurred cost submissions for 3+ years after final payment. DCAA audit rights extend through the retention period. Inadequate records create audit findings and potential cost disallowance.
Common Pitfalls
- 1Premature record destruction
- 2Inadequate documentation supporting cost claims
- 3Disorganized records that delay audit response
Related Topics
Related Clauses
Subcontractor Certified Cost or Pricing Data
Requires primes to flow down TINA cost/pricing data requirements to subcontractors when the subcontract value exceeds the TINA threshold.
Cost Accounting Standards
Requires contractors to comply with applicable Cost Accounting Standards (CAS) on negotiated contracts over the CAS threshold.
Continue Your Research
NAICS 518210 — Data Processing, Hosting, and Related Services
Find federal contracts under NAICS 518210. Common agencies, set-asides, contract values.
NAICS 541330 — Engineering Services
Find federal contracts under NAICS 541330. Common agencies, set-asides, contract values.
Browse Full FAR Clause Library
All FAR and DFARS clauses we've documented with plain-English summaries.
GovCon Compliance Blog
Latest guidance on FAR/DFARS updates, CMMC, NIST 800-171, and capture strategy.
Need help complying with FAR 52.215-2?
Aliff helps GovCon firms map clause requirements to deliverables, build compliance evidence, and respond to CO inquiries with confidence.