PART 1342 - CONTRACT ADMINISTRATION
Subpart 1342.1 - Interagency Contract Administration and Audit Services
1342.102-70 Post award audit reviews.
(a) Generally, the final invoice shall not be approved until a close-out audit has been performed and all outstanding issues have been negotiated or resolved on the following types of contracts of $100,000 and above:
(1) Cost-reimbursement type contracts;
(2) The cost-reimbursement portion of fixed-price contracts;
(3) Letter contracts which provide for reimbursement of costs;
(4) Time and materials contracts; and
(5) Labor-hour contracts.
(b) Even though the $100,000 postaward audit threshold generally applies, an audit may be requested regardless of the dollar amount when the contracting officer determines that an audit is justified under one of the following circumstances:
(1) There is some evidence of fraud or waste;
(2) The contractor’s performance under the contract has been questionable;
(3) The contractor had a high incidence of unallowable costs under a previous contract;
(4) The contract is with a newly established firm, or a firm which has just begun dealing with the Government.