hereunder which is on a cost, cost-plus-afixed-fee, time-and-material or labor-hours basis.

(b) The Contractor further agrees to include in each of his subcontracts hereunder, other than those set forth in subparagraph (a)(6) above, a provision to the effect that the subcontractor agrees that the Comptroller General, the Secretary of the Interior, and the Contracting Officer, or any of their duly authorized representatives, shall, until the expiration of three years after final payment under the subcontract, or of the time periods for the particular records specified in Part 1-20 of the Federal Procurement Regulations (41 CFR Part 1-20), whichever expires earlier, have access to and the right to examine any directly pertinent books, documents, papers, and records of such subcontractors, involving transactions relating to the subcontractor. The term "subcontractor," as used in this subparagraph (b) only, excludes (i) purchase orders not exceeding $10,000, and (ii) subcontracts or purchase orders for public utility services at rates established for uniform applicability to the general public.

[39 FR 15399, May 3, 1974, as amended at 41 FR 5283, Feb. 5, 1976]

§ 14-63.104-2 Audit of contract modifications.

The following clause shall be included in all contracts where the cost to the Government is estimated to exceed $100,000, except those listed in § 14-63.103:

AUDIT OF MODIFICATIONS

The "Examination of Records of Contract Modifications" clause contained in 41 CFR 14-63.104-3 shall be included in every document modifying the price to the Government when the pricing of any modification to a formally advertised or negotiated contract (whether or not cost or pricing data was required under the initial contract) involves aggregate increases and/or decreases, plus applicable profits, in excess of $100,000.

§ 14-63.104-3 Examination of records of contract modifications.

The following clause is prescribed for use in contract modifications involving aggregate increases and/or decreases plus applicable profits in excess of $100,000 in accordance with the Audit of Modifications clause in § 14-63.104-2:

EXAMINATION OF RECORDS OF CONTRACT

MODIFICATIONS

(a) For the purpose of verifying that the cost or pricing data submitted in conjunction with this contract modification were accurate, complete and current, the Secretary and the Contracting Officer or any of their authorized representatives, shall, until the expiration of 3 years from the date of final payment under the contract of which this modification is a part, or of the time periods for the particular records specified in Part 1-20 of the Federal Procurement Regulations (41 CFR Part 1-20) whichever expires earlier, have the right to examine those books, records, documents, papers and other supporting data which involve transactions related to this modification or which will permit adequate evaluation of the cost or pricing data submitted, along with the computations and projections used therein.

(b) If the contract of which this modification is a part is completely or partially terminated and the work so terminated is inIcluded in this modification the records relating thereto shall be preserved and made available for 3 years from the date of any resulting final settlement.

(c) If the records concerning this modification relate to (1) appeals under the contract "Disputes" clauses, (2) litigation or settlement of claims arising out of the performance of the contract, or (3) costs and expenses of this contract as to which the Contracting Officer or his authorized representative have taken exception, they shall be retained by the Contractor until such appeals, litigation, claims, or exceptions have been disposed of.

[39 FR 15399, May 3, 1974, as amended at 41 FR 5283, Feb. 5, 1976]

§ 14-63.105 Payments under contracts subject to audit.

§ 14-63.105-1 Submission and processing of invoices or vouchers.

(a) Contractors shall be required to submit invoices or vouchers as directed by the contract provisions. The processing of invoices or vouchers prior to payment for work or services rendered shall include a review by the contracting officer, or his designated representative, to determine that the nature of items and amounts claimed are in consonance with the contract terms, represent prudent business transactions, and are within any stipulated contractual limitations. If the contractor has not deducted from his claim amounts which are questionable

or which are required to be withheld, the contracting officer shall make the required deduction, except as provided in § 14-63.105-2.

(b) Provisional approval by the contracting officer of any payment, including any specific approval as to the nature or amount of a cost shall be noted on (or attached to) the invoice or voucher (see, for example, § 115.107 of this title regarding advance understandings on particular cost

items). The invoice or voucher shall be forwarded to the appropriate accounting center and retained therein after certification and scheduling to a disbursing office for payment.

§ 14-63.105-2 Action upon receipt of an audit report.

Audit reports shall be furnished to the contracting officer. Upon receipt of an audit report, the contracting officer shall, pursuant to contract terms, determine the allowability of all costs covered by audit giving full consideration to the auditor's recommendations. Where the contracting officer is in doubt or questions the recommendations of the auditor, deductions need not be made from invoices or vouchers for provisional payments. The contracting officer in such cases, however, shall confer with the auditor and other appropriate Government personnel (such as a price specialist or legal counsel) to determine what further action should be taken regarding the items of cost in question. If the contracting officer disagrees with the audit recommendations, the contract

ing officer shall prepare a statement for the contract file to support and justify his decision and for informational purposes shall forward a copy of such statement to the Office of Audit and Investigation. The contracting officer shall also furnish a written notice to the Office of Audit and Investigation stating the action taken to recover questioned costs in which the contracting officer concurs with the audit recommendations. Such notices, as well as copies of statements pertaining to non-concurrence with audit recommendations, shall be forwarded to the Office of Audit and Investigation within 90 calendar days following issuance of the corresponding audit reports. (See also § 1-3.811 of this title.)

[39 FR 15399, May 3, 1974, as amended at 40 FR 10468, Mar. 6, 1975]

§ 14-63.105-3 Suspensions and disapprovals of amounts claimed.

The contracting officer shall notify the appropriate certifying officer in writing when amounts claimed for payment are (a) suspended tentatively, (b) disapproved as not being allowable according to contract terms, or (c) not reasonably incident or allowable to performance of the contract. Such notice by the contracting officer shall be the basis for the issuance by the certifying officer of a statement to be attached to each copy of the invoice or voucher from which the deduction has been made, explaining the reasons for the deduction.

14H-1.404 Selection, designation and termination of designation of contracting officers.

14H-1.404-2 Designation.

14H-1.404-3 Termination of designation. 14H-1.404-4 Assignment of duties to contracting officers.

14H-1.451 Delegation and redelegation of authority and designation of contracting officers.

14H-1.451-2 Designation of contracting officer positions.

14H-1.451-6 Limitation of contracting officer authority.

AUTHORITY: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c).

SOURCE: 34 FR 13659, Aug. 26, 1969, unless otherwise noted.

§ 14H-1.000 Scope of part.

(a) This part establishes a system for the codification and publication of policies and procedures of the Bureau of Indian Affairs (Bureau) regulations which implement, supplement or deviate from the Federal Procurement Regulations (FPR) and Interior Procurement Regulations (IPR), when appropriate.

(b) The Federal Procurement Regulations are published as Chapter 1 of this title. The Interior Procurement Regulations which implement and supplement the FPR are published as Chapter 14 of this title. The Bureau Procurement Regulations which implement and supplement the FPR and IPR are published as Chapter 14H of this title. It is the basic policy of the Bureau to apply the Federal Procurement Regulations and the Interior Procurement Regulations. Thus, as to most elements of the procurement process, substantive guidelines will be found by reference to those regulations in the order mentioned.

Subpart 14H-1.0-Regulation System § 14H-1.001 Scope of subpart.

This subpart establishes the Bureau of Indian Affairs Procurement Regulations (BIAPR) and states their rela tionship to the Federal Procurement Regulations (FPR) and the Interior Procurement Regulations (IPR).

§ 14H-1.002 Purpose.

This subpart establishes for the Bureau uniform policies and procedures related to procurement of personal property, nonpersonal services, construction, and real property by lease.

§ 14H-1.003 Authority.

BIAPR are prescribed by the Commissioner of Indian Affairs (Commissioner) under the Federal Property and Administrative Services Act of 1949, as amended, or other authority specifically cited.

§ 14H-1.004 Applicability.

BIAPR apply to all procurement activities of the Bureau to the extent in