4.705 Specific retention periods
Source: FAR 4.705 on acquisition.gov
Contractors must retain all records described in FAR 4.705-1 through 4.705-3 for the specified periods, regardless of internal naming conventions, to ensure compliance with federal requirements.
Overview
FAR 4.705 establishes the specific retention periods for contractor records as identified in sections 4.705-1 through 4.705-3, provided that record retention is required under FAR 4.702. The regulation clarifies that records are categorized by their purpose or use, rather than by specific names or form numbers, meaning contractors must interpret the descriptions broadly to ensure compliance. Even if the terminology used in the FAR does not match a contractor’s internal record-keeping system, the requirements still apply to all records fitting the described categories. This section references three main types of records: financial and cost accounting records, pay administration records, and acquisition and supply records, each with its own designated retention period detailed in the referenced subsections.
Key Rules
- Retention Periods Defined by Record Type
- Contractors must retain records as specified in 4.705-1 (financial/cost), 4.705-2 (pay administration), and 4.705-3 (acquisition/supply) if required by 4.702.
- Purpose-Based Identification
- Record categories are defined by their function, not by specific names or forms, so contractors must match their records to the described purposes.
Responsibilities
- Contracting Officers: Ensure contractors are aware of and comply with record retention requirements.
- Contractors: Identify and retain all records that fit the described categories for the specified periods, regardless of internal naming conventions.
- Agencies: May audit or request records to verify compliance with retention requirements.
Practical Implications
- This section ensures that essential records are available for audit, review, or investigation for the required period.
- Contractors must carefully map their internal records to the FAR’s descriptions to avoid accidental non-compliance.
- Misinterpretation of record categories or retention periods is a common pitfall, so cross-referencing with 4.705-1 through 4.705-3 is critical.
The contractor shall retain the records identified in 4.705-1 through 4.705-3 for the periods designated, provided retention is required under 4.702. Records are identified in this subpart in terms of their purpose or use and not by specific name or form number. Although the descriptive identifications may not conform to normal contractor usage or filing practices, these identifications apply to all contractor records that come within the description.