52.215-2 — Audit and Records—Negotiation
Researched by the BidStride Research Team
What This Clause Requires
Requires contractor to maintain books, records, documents, and other evidence related to contract performance for 3 years after final contract payment and make them available for Government examination.
Official Regulation Text
See 48 CFR 52.215-2 for the full regulatory text. This clause gives the Government the right to examine and audit all contractor records related to contract pricing, performance, and costs. Records must be retained for 3 years after final payment and made available to authorized Government representatives.
Compliance Checklist
- Maintain all contract-related records for at least 3 years post-final payment
- Provide access to DCAA or other designated auditors
- Include flow-down in subcontracts exceeding simplified acquisition threshold
Flow-Down to Subcontractors
Flow-down required
This clause must be included in subcontracts with subcontracts above $150,000 where the subcontractor will perform work covered by this clause. Typically appears in contract Sections H, I.
Frequently Asked Questions
At least 3 years after final payment. However, if a cost dispute or claim is pending, records must be retained until the matter is resolved. Records related to cost accounting must be kept for the period required by the applicable cost accounting standards.
DCAA requests: timesheets and labor distribution records, invoices and payment records, subcontract files, bid and proposal documentation, incurred cost submissions, and accounting system data. Keep these organized and readily accessible throughout the contract period.
Yes. Electronic records are acceptable provided they are complete, accurate, retrievable, and protected from unauthorized alteration or deletion. Maintain backup copies and document your records retention policy.
DCAA audits can be pre-award (system reviews), incurred cost (annual), or specific (triggered by issues). The audit typically starts with an entrance conference, proceeds through document review and interviews, and concludes with a report to the contracting officer. Cooperation is mandatory under 52.215-2.
This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.