FAR 4.700—Scope of subpart.
Plain-English Summary
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.
Key Rules
Record retention purpose
This subpart exists to establish policies and procedures for retaining contractor records. The goal is to ensure the Government can later conduct the records reviews it is entitled to make under applicable contract requirements.
Government review focus
The retention rules are tied to the Government’s records review requirements, not just internal contractor housekeeping. Contractors must keep records long enough to support Government examination, audit, or other review rights that arise under the contract and applicable regulations.
Broad use of contract terms
For this subpart, the terms “contracts” and “contractors” include “subcontracts” and “subcontractors.” This means the scope is intentionally broad and can extend record-retention expectations beyond the prime contractor to lower-tier entities.
Responsibilities
Contracting Officer
Apply the subpart’s record-retention framework when administering contracts and ensure the contract relationship reflects the Government’s records review needs. When relevant, flow down or otherwise account for record-retention obligations that may affect subcontractors.
Contractor
Retain records in accordance with the subpart so they are available for Government review. Recognize that the obligation may extend beyond the prime contract level and may require coordination with subcontractors and internal recordkeeping systems.
Subcontractor
Preserve records when the subpart’s requirements apply through the subcontract or by operation of the broad definitions in this section. Maintain documentation in a manner that allows the prime contractor or Government to support required reviews.
Agency
Use the subpart as the policy basis for ensuring records needed for Government review are retained and accessible. Support oversight, audit, and compliance activities that depend on contractor-held records.
Practical Implications
This section is a gateway provision: it does not set the detailed retention periods itself, but it tells you that the rest of the subpart is about keeping records for Government review.
Contractors should not assume only prime contracts matter; subcontract records may also need to be retained, especially where the Government’s review rights reach down the supply chain.
A common pitfall is treating record retention as a closeout task instead of a compliance requirement that must be built into document management from the start of performance.
Contracting officers and contractors should verify that subcontract terms, internal policies, and retention schedules align with the broader definition of covered contracts and contractors.
If records are not preserved, the contractor may be unable to support pricing, payment, or other contract-related reviews, creating audit findings, disputes, or compliance issues.
Official Regulatory Text
This subpart provides policies and procedures for retention of records by contractors to meet the records review requirements of the Government. In this subpart, the terms "contracts" and "contractors" include "subcontracts" and "subcontractors."