FAR 4.7—Subpart 4.7

Scope of subpart.

FAR 4.700 is the scope statement for the record-retention subpart. It tells contractors and contracting personnel that this subpart establishes the policies and procedures for how long contractors must keep records so the Government can later review them. It also makes clear that, for purposes of this subpart, the words “contracts” and “contractors” are read broadly to include “subcontracts” and “subcontractors.” In practice, that means the record-retention rules are not limited to prime contracts; they can also reach lower-tier suppliers and subcontractors when the Government’s records review rights apply. The section exists to support auditability, accountability, and access to supporting documentation after contract performance, payment, or closeout. Its practical significance is that it sets the frame for determining who must preserve records, what kinds of contractual relationships are covered, and why those records must be available for Government review.

Purpose.

FAR 4.701 is the opening purpose statement for the records retention subpart. It tells readers that this subpart is about two related subjects: first, the general rules for how long federal contract records must be kept, and second, the ability to shorten those retention periods for certain categories of records when specific conditions are met. In practice, this means the subpart is not itself a detailed retention schedule, but a framework that points agencies, contracting officers, and contractors to the retention requirements and any authorized exceptions or reductions. Its significance is practical and compliance-focused: records must be kept long enough to support audits, claims, disputes, and oversight, but the government also recognizes that some records do not need to be retained indefinitely. This section therefore sets the stage for balancing accountability, administrative burden, and recordkeeping efficiency in federal contracting.

Applicability.

FAR 4.702 explains when the record-retention rules in this subpart apply. It ties applicability to contracts that include either the Audit and Records—Sealed Bidding clause at 52.214-26 or the Audit and Records—Negotiation clause at 52.215-2, so contractors and contracting officers know which contracts trigger the retention framework. It also identifies a limited exception for Department of Energy contracts when the Comptroller General has approved alternative retention periods. Beyond that exception, the section confirms that the subpart applies to record-retention periods under contracts governed by the legacy statutory provisions cited in the rule, including certain title 10 and title 40 authorities. In practice, this section is the gateway rule that tells the parties whether the FAR’s record-retention requirements apply at all, and it helps avoid using the wrong retention schedule for a given contract.

Policy.

FAR 4.703 sets the basic policy for how long contractors must keep records available for contract negotiation, administration, and audit, and what forms those records may take. It covers the general retention period after final payment, the special retention periods in FAR 4.705 through 4.705-3, and the rule that the shorter applicable period controls unless a longer period is required by contract or by the contractor’s own retention practices. It also addresses what happens when a contractor misses the original due date for submitting the final indirect cost rate proposal under the Allowable Cost and Payment clause at 52.216-7, which automatically extends certain retention periods day-for-day. In addition, the section explains when original paper records do not have to be kept or produced if they are properly imaged or stored electronically, including requirements for reliable and secure imaging, indexing, and temporary retention of originals for validation. Finally, it establishes rules for retaining computer data on reliable media, transferring data without losing integrity, keeping an audit trail, and prohibiting destruction, deletion, or overwriting of retained data during the required retention period. In practice, this section is about preserving evidence: contractors must be able to produce accurate, accessible, and trustworthy records long enough to support audits, pricing actions, and other government reviews.

Calculation of retention periods.

FAR 4.704 explains how to calculate the retention periods for contractor records covered by FAR 4.705. It addresses three specific topics: how to start the retention clock for records tied to cost entries, how to treat records with multiple entries over time, how to handle records from a prior contract that are later used as certified cost or pricing data in a succeeding contract, and how to manage interfiled record categories when separate screening for disposal is impractical. In practice, this section tells contractors when the retention period begins, not just how long records must be kept, which is critical for compliant record disposition and audit readiness. It also requires contractors to organize records in annual blocks where possible, so they can dispose of records in an orderly way after the applicable retention period expires. For contracting officers and auditors, the rule helps determine whether records should still be available when reviewing cost allowability, pricing support, or contract performance history.

Specific retention periods.

FAR 4.705 explains how to apply the specific record retention periods in FAR 4.705-1 through 4.705-3. It tells contractors that they must keep the records listed in those sections for the designated time periods, but only if retention is required under FAR 4.702, which is the rule that ties retention to the existence of a contract and other applicable conditions. The section also makes clear that the records are described by their purpose or use, not by a particular file name, form number, or internal contractor label. That means contractors cannot avoid retention obligations by using different terminology, filing systems, or document titles. In practice, this section is the gateway to the detailed retention schedule: it tells users how to read the schedule, how broadly to interpret the record descriptions, and why recordkeeping systems must be aligned to the substance of the records rather than their labels.