Safely Navigate Government Cost & Pricing

Trusted by Government & Contractors for Over 25 Years

Denying Access of Data to Prime

View a Printer Friendly version of this page, allowing you to print the page. Send a summary of this page to someone via email.

INQUIRY: What is the far clause for a lower tier subcontractor to deny audit access to the prime for competitive purposes?

RESPONSE: There is no FAR clause that provides for permitting a subcontractor's denial of a prime contractor audit access to the subcontractor's books and records.  A subcontractor is required to demonstrate its compliance with CAS and/or FAR (as applicable) in accordance with the applicable flow-down contract clauses.  If a subcontractor denies its prime contractor access to the subcontractor's books and records, the prime contractor will have to request assistance from the contracting officer to ensure the subcontractor's compliance with CAS and/or FAR.

FAR 15.404-3 states that the prime contractor shall conduct appropriate price or cost analyses to establish the reasonableness of proposed subcontract prices.  DFARS PGI 215.404-3 provides that if a prime contractor is unable to complete its required price or cost analyses of a subcontractor's proposal because the prime contractor has been denied access to the subcontractor's records, then the prime contractor may request assistance from the contracting officer to analyze and evaluate the subcontractor's proposal.

To Minimize Spam - This page is only available if you have Registered as a Member (There is a FREE Registration option!). 

Not yet a Registered member? Join Today

Already a Registered Member? Please Login. You will then have access.

If you believe you should be able to view this area then please contact us and we will try to rectify the issue as soon as possible.

To gain Full Access to Member Content click here to subscribe.

You will be given immediate Full Access to premium content on the site.