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   <concept id="id201I89010X8"
            audience="GSAR"
            ditaarch:DITAArchVersion="1.2"
            class="- topic/topic concept/concept ">
      <title xtrc="GSAR" xtrf="GSAR" class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">536.7105-3</ph> Accounting
and Auditing Requirements.</title>
      <conbody class="- topic/body  concept/conbody ">
         <ol class="- topic/ol ">
            <li class="- topic/li ">
               <p id="id201I8A0306G" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(a)</ph>
                  
                  
                  
                  
                  
                  
                   <i class="+ topic/ph hi-d/i ">Cost
Accounting Standards.</i>
               </p>
               <ol class="- topic/ol ">
                  <li class="- topic/li ">
                     <p id="id201I8B00FYY" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(1)</ph>
                        
                        
                        
                        
                        
                        
                         Except as provided in paragraph
(a)(2) of this subsection or through an exemption at <xref href="https://www.acquisition.gov/content/30201-1-cas-applicability"
                              format="html"
                              scope="external"
                              class="- topic/xref ">FAR 30.201-1</xref>, construction contracts
under the CMc project delivery method are subject to the cost accounting
standards (CAS) identified in FAR Part 30.</p>
                  </li>
                  <li class="- topic/li ">
                     <p id="id201I8B00J0U" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(2)</ph>
                        
                        
                        
                        
                        
                        
                         The
contracting officer may request a CAS waiver in accordance with
the requirements at <xref href="https://www.acquisition.gov/content/30201-5-waiver"
                              format="html"
                              scope="external"
                              class="- topic/xref ">FAR 30.201-5</xref> and <xref href="GSAM-REEVQKTR.dita#REEVQKTR"
                              base="REEVQKTR"
                              outputclass="fm:ParaNumOnly"
                              class="- topic/xref ">530.201-5</xref>.</p>
                  </li>
                  <li class="- topic/li ">
                     <p id="id201I8B00JHO" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(3)</ph>
                        
                        
                        
                        
                        
                        
                         If
CAS applies, the contract clauses identified at <xref href="https://www.acquisition.gov/content/30201-4-contract-clauses"
                              format="html"
                              scope="external"
                              class="- topic/xref ">FAR 30.201-4</xref> shall
be included in the contract.</p>
                  </li>
                  <li class="- topic/li ">
                     <p id="id201I8B00K1X" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(4)</ph>
                        
                        
                        
                        
                        
                        
                         If
a CAS waiver is granted or if CAS does not apply, the contract clause
identified at <xref href="GSAM-536.7107.dita#id201I9F0E0QD"
                              base="id201I9F0E0QD"
                              outputclass="fm:ParaNumOnly"
                              class="- topic/xref ">536.7107</xref>(b)
shall be included in the contract.</p>
                  </li>
               </ol>
            </li>
            <li class="- topic/li ">
               <p id="id201I8A0M0UD" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(b)</ph>
                  
                  
                  
                  
                  
                  
                   <i class="+ topic/ph hi-d/i ">GMP
Option Accounting.</i>
               </p>
               <ol class="- topic/ol ">
                  <li class="- topic/li ">
                     <p id="id201I8B090I3" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(1)</ph>
                        
                        
                        
                        
                        
                        
                         Open Book Accounting.
Open book accounting shall be followed for financial tracking of
all contract line items that are awarded on a GMP basis. Such financial
tracking may be accomplished through an audit in accordance with paragraph
(c) of this section.</p>
                  </li>
                  <li class="- topic/li ">
                     <p id="id201I8C00AKB" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(2)</ph>
                        
                        
                        
                        
                        
                        
                         Payments
and Reconciliation. All payments shall be reconciled with the open
book accounting records and the schedule of values adjusted, as
appropriate. Reconciliation shall occur each month and should be
coordinated with monthly progress payments. The reconciliation shall
be documented in the contract file.</p>
                  </li>
               </ol>
            </li>
            <li class="- topic/li ">
               <p id="id201I8A0M0FX" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(c)</ph>
                  
                  
                  
                  
                  
                  
                   Auditing
Requirements. In accordance with GSAM <xref href="GSAM-DSWMHCUQ.dita#DSWMHCUQ"
                        base="DSWMHCUQ"
                        outputclass="fm:ParaNumOnly"
                        class="- topic/xref ">542.102</xref>(a), for any audit
services required by this Subpart <xref href="Subpart_536.71.dita#id201HD70G0S3"
                        base="id201HD70G0S3"
                        outputclass="fm:ParaNumOnly"
                        class="- topic/xref ">536.71</xref>, the contracting
officer shall first request such services be performed by or through
the Assistant Inspector General for Auditing or the Regional Inspector
General for Auditing. If the Office of Inspector General declines
to perform such an audit, the contracting officer may obtain audit
services from a certified public accountant.</p>
            </li>
         </ol>
      </conbody>
   </concept>
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