(2) Contractor's name and address, (3) A brief description of the work involved,

(4) Effective date of the document, (5) Completion date (estimated) of the work involved,

(6) Estimated dollar amount.

In addition, a copy of a notice of termination of contracts of the types described in this § 14-51.103 shall be forwarded to the Director, Audit Operations, Office of Survey and Review, within 15 days after effective date of termination. Such notice shall contain the contract number and the contractor's name and address and the estimated dollar amount of the costs incurred by the contractor as of the effective date of termination.

§ 14-51.104 Contract clauses.

The following contract clauses are prescribed for use as indicated in this § 14-51.104.

§ 14-51.104-1

Examination of records

by the Secretary of the Interior. The following contract clause is prescribed for use in contracts listed in § 14-51.103 (a).

EXAMINATION OF RECORDS BY THE
SECRETARY OF THE INTERIOR

(a) The contractor shall maintain books, records, documents, and other evidence and accounting procedures and practices, sufficient to reflect properly all direct and indirect costs of whatever nature claimed to have been incurred and anticipated to be incurred for the performance of this contract. The foregoing constitute "records" for the purposes of this clause.

(b) The contractor's plants, or such part thereof as may be engaged in the performance of this contract, and his records shall be subject at all reasonable times to inspection and audit by the Secretary or his authorized representatives. In addition, the Secretary, or his authorized representatives, shall, until the expiration of 3 years from the date of final payment under this contract, or of the time periods for the particular records specified in Part 1-20 of the Federal Procurement Regulations, whichever expires earlier, have the right to examine those books, records, documents, papers, and other supporting data which involve transactions related to this contract along with the computations and projections used therein.

(c) The contractor shall preserve and make available his records (1) until the expiration of 3 years from the date of final payment under this contract, or of the time periods for the particular records specified

in Part 1-20 of the Federal Procurement Regulations, whichever expires earlier, and (2) for such longer period, if any, as is required by applicable statute, or by other clauses of this contract, or by (1) or (ii) below.

(1) If this contract is completely or partially terminated, the records relating to the work terminated shall be preserved and made available for a period of 3 years from the date of any resulting final settlement. (ii) Records which relate to (A) appeals under the "Disputes" clause of this contract, (B) litigation or the settlement of claims arising out of the performance of this contract, or (C) costs and expenses of this contract as to which exception has been taken by the contracting officer or any of his duly authorized representatives, shall be retained until such appeals, litigation, claims, or exceptions have been resolved.

(d) The contractor shall insert the substance of clause, including the whole of this paragraph (d), in each subcontract hereunder. When so inserted, changes shall be made to designate the higher-tier subcontractor at the level involved in place of the contractor; to add "of the Government prime contract" after "contracting officer"; and to substitute "the Government prime contract" in place of "this contract" in (B) of paragraph (c) above.

§ 14-51.104-2 Audit of contract changes or modifications.

The following clause shall be included in all contracts, which are estimated to exceed $100,000, except those listed in § 14-51.103:

AUDIT OF CHANGES OR MODIFICATIONS

The "Examination by the Secretary of the Interior of Records of Contract Changes or Modifications" clause contained in the Interior Procurement Regulations at § 1451.104-3 shall be included in every change order or modification under this contract which results in a net price adjustment (increase or decrease) in excess of $100,000. § 14-51.104-3 Examination of contract changes or modifications records clause.

The following clause is prescribed for use in contract changes or modifications which result in a net price adjustment (increase or decrease) in excess of $100,000 in accordance with the "Audit of Changes or Modifications" in § 14-51.104-2:

EXAMINATION BY
OF
THE SECRETARY
THE
INTERIOR OF RECORDS OF CONTRACT CHANGES
OR MODIFICATIONS

(a) For the purpose of verifying that the cost or pricing data submitted in conjunc

tion with this contract change or modification were accurate, complete and current, the Secretary of the Interior or his authorized representatives, shall, until the expiration of 3 years from the date of final payment under the contract of which this change or modification is a part, or of the time periods for the particular records specified in Part 1-20 of the Federal Procurement Regulations, whichever expires earlier, have the right to examine those books, records, documents, papers and other supporting data which involve transactions related to this change or 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 change or modification is a part is completely or partially terminated and the work so terminated is included in this change or 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 change or modification relate to (1) appeals under the contracts "Disputes" clause, (2) litigation or settlement arising out of the performance of the contract, or (3) costs and expenses of the contract to which the contracting officer or his authorized representative have taken exception, they shall be retained until such time as such appeals, litigation, claims, or exceptions have been resolved. § 14-51.105

Payments under contracts subject to audit.

§ 14-51.105-1 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 § 14-51.105-2.

(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, § 1-15.107 of this title

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 contracting 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 Director, Audit Operations, Office of Survey and Review. (See also § 1-3.811 of this title.)

§ 14-51.105-3 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 allocable 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.

§ 14-51.106 Waiver.

The contracting officer and the Director, Office of Survey and Review, may agree to limit the application of specific contract audit requirements in individual cases such as where the possible cost/

benefits ratio of the audit do not warrant the assignment of audit resources or where audit resources are unavailable; provided, that the stated urgency of a proposed procurement or other contract action shall not alone be justification for such a waiver and provided the waiver is made within the terms of the Federal

Procurement Regulations. As much time as possible should be allowed by contracting officers for the audit work. Except under unusual circumstances, at least 30 days should be allowed for the review of the contractors' proposals pursuant to § 1-3.809 of the Federal Procurement Regulations in this title.

14H-1.002

14H-1.003

14H-1.004

14H-1.006

Scope of subpart.

Purpose.

14H-1.006-1 Code arrangement.

Authority.

Applicability.

Issuance.

Delegation and redelegation of authority and designation of contracting officers.

14H-1.451-2 Designation of contracting of

ficer positions.

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

AUTHORITY: The provisions of this Part 14H-1 issued under sec. 205 (c), 63 Stat. 390; 40 U.S.C. 486 (c).

SOURCE: The provisions of this Part 14H-1 appear at 34 F.R. 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

§ 14H-1.007-3 Citation.

Using this section as an example BIAPR should be cited as, "BIAPR 14H-1.007-3." When referred to formally in official documents such as legal briefs, the section should be cited as "41 CFR 14H-1.007-3."

§ 14H-1.008 Agency implementation.

(a) It is Bureau policy to utilize FPR and IPR to the fullest extent possible in the conduct of all procurement matters. The Bureau will conform to this policy by avoiding implementation, supplementation, or deviation from FPR and IPR unless compelling reasons exist for doing so.

(b) FPR and IPR shall be applicable as issued unless implemented, supplemented, or deviated from in BIAPR.

(c) Matters which pertain to procurement but are primarily for internal guidance whether or not related to the material in FPR and IPR, will be issued as Bureau of Indian Affairs Procurement Instructions (BIAPI). To simplify usage of BIAPI in conjunction with FPR, IPR and BIAPR the same system and format used for those regulations will be followed. A yellow colored paper will be used for BIAPI.

§ 14H-1.009 Deviation.

§ 14H-1.009-2 Procedure.

Deviations from FPR and IPR by the Bureau will be kept to a minimum and controlled as follows:

(a) Requests for approval of deviations may be submitted by contracting officers to the Commissioner. The requests shall cite the specific part of FPR, or IPR, from which it is desired to deviate, shall set forth the nature of the deviations, and shall give the reasons for the action requested. Requests considered meritorious will be submitted for approval as provided for in IPR. No deviation shall be effective until approved.

Subpart 14H-1.2-Definition of Terms § 14H-1.205 Procuring activity.

"Procuring activity" means the Bureau of Indian Affairs in which authority to contract for the procurement of personal property, nonpersonal services, and construction is vested.