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   <concept id="UKBASPNV"
            ditaarch:DITAArchVersion="1.2"
            class="- topic/topic concept/concept ">
      <title class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">542.7003</ph> Additional internal
controls.</title>
      <conbody class="- topic/body  concept/conbody ">
         <ol id="d718e13" class="- topic/ol ">
            <li class="- topic/li ">
               <p id="d711e17" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(a)</ph>
                  
                  
                  
                    The contracting officer
should not rely solely on contractual audit rights. The contracting
officer should establish internal controls or procedures for any
flexible or variable features of these contracts:</p>
               <ol id="d718e23" class="- topic/ol ">
                  <li class="- topic/li ">
                     <p id="d711e27" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(1)</ph>
                        
                        
                        
                          Cost-reimbursement.</p>
                  </li>
                  <li class="- topic/li ">
                     <p id="d711e36" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(2)</ph>
                        
                        
                        
                          Time-and-materials
or labor-hour.</p>
                  </li>
                  <li class="- topic/li ">
                     <p id="d711e45" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(3)</ph>
                        
                        
                        
                          Requirements
or indefinite-quantity.</p>
                  </li>
               </ol>
               <p class="- topic/p ">For example, for a time-and-materials
or labor-hour contract performed at a Government facility or elsewhere,
the contracting officer should provide for the review of time records.
The contracting officer should provide for this review even if the
contractor is subject to supervision by Government personnel.</p>
            </li>
            <li class="- topic/li ">
               <p id="d711e62" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(b)</ph>
                  
                  
                  
                    The
contracting officer should establish these internal controls or
procedures prior to the commencement of contract performance. Use
any reasonable and reliable method or procedure that will enable
the Government to determine the correctness of the charges for such
matters as the time spent on the job and materials or supplies received.
If needed, obtain assistance from the Assistant Inspector General
for Auditing or the Regional Inspector
General for Auditing.
               </p>
            </li>
         </ol>
      </conbody>
   </concept>
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