Contractors need to be familiar with FAR Subpart 4.7 (Go to “Find”, and type in “4.7”), which provides the policies and procedures government contractors must follow for retention of their records. Contractors are required to retain all records “which include books, documents, accounting procedures and practices and other data, regardless of type and regardless of whether such items are in written form, in the form of computer data, or in any other form…” The duration for records retention is a minimum of three years after final payment, or for other periods specified—for certain records. In some cases, the retention period may be longer if specified in a contract clause.
FAR 4.705 (Go to “Find”, and type in “4.705”) identifies the required retention periods for specific records such as those for:
(1) Financial and cost accounting,
(2) Pay administration, and
(3) Acquisition and supply.
Be sure to refer to FAR 4.705 (Go to”Find”, and type in “4.705”) for the comprehensive list.
This blog is only a short summary of the highlights of FAR Subpart 4.7 (Go to “Find”, and type in “4.7”).
For a comprehensive understanding, please read the regulation in its entirety.