Subpart 4.7
Contractor Records Retention
Contractors must retain specified records for defined periods to support government audits and oversight, making compliance with FAR 4.7 essential for all contract holders.
Overview
FAR Subpart 4.7, Contractor Records Retention, establishes the requirements for how long contractors must retain records related to government contracts. This subpart outlines the scope, purpose, applicability, and policy for records retention, as well as the methods for calculating retention periods and the specific timeframes for different types of records. The regulation ensures that essential contract-related documents are available for audit, review, and compliance purposes for a defined period after contract completion or other specified events. Contractors must be aware of these requirements to avoid penalties and ensure smooth government oversight.
Key Rules
- Scope and Purpose
- Defines which contracts and records are covered and the rationale for retention requirements.
- Applicability
- Specifies which contractors and contract types must comply with these rules.
- Policy
- Establishes the general rule that contractors must retain records for specified periods.
- Calculation of Retention Periods
- Details how to determine the start and end dates for retention based on contract events.
- Specific Retention Periods
- Lists the required retention periods for various categories of records (e.g., financial, payroll, acquisition).
Responsibilities
- Contracting Officers: Must ensure contractors are aware of and comply with retention requirements.
- Contractors: Must identify, maintain, and retain required records for the specified periods and make them available for government review.
- Agencies: May audit or request access to records during and after the retention period.
Practical Implications
- This subpart exists to support government oversight, audits, and investigations by ensuring records are available when needed.
- Contractors must implement robust recordkeeping systems and track retention timelines to avoid noncompliance.
- Common pitfalls include miscalculating retention periods, failing to retain all required records, or not making records accessible upon request.