FAR 4.705-3—Acquisition and supply records.
Plain-English Summary
FAR 4.705-3 sets the retention periods for a specific group of acquisition and supply records used in contract administration, property accountability, and audit support. It covers store requisitions, work orders, equipment records, expendable property records, receiving and inspection reports, purchase order files and supporting documentation, production records for quality control/reliability/inspection, and property records. The rule exists to ensure the Government and contractors keep enough documentation to verify what was ordered, received, used, inspected, repaired, negotiated, and accounted for during contract performance. In practice, this section tells contractors and agencies how long to keep these records so they can support audits, disputes, property reviews, invoice validation, subcontract price negotiations, and other post-award oversight activities. The retention periods are mostly four years, with store requisitions retained for two years, so recordkeeping systems must distinguish among document types rather than applying one blanket retention period. This section is especially important for contractors with significant material handling, government property, quality control, or subcontracting activity because these records often become the evidence trail for compliance and cost allowability questions.
Key Rules
Store requisitions: 2 years
Store requisitions for materials, supplies, equipment, and services must be retained for 2 years. This is the shortest retention period in this section and applies to the request documents themselves, not necessarily to related supporting records that may have longer retention requirements.
Work orders: 4 years
Work orders for maintenance and other services must be retained for 4 years. These records document the authorization and execution of maintenance or service activity and may be needed to verify performance, cost, or asset support.
Equipment and usage records: 4 years
Equipment records, including usage and status reports and repair orders, must be retained for 4 years. These records help show how equipment was used, whether it was operational, and what repairs were performed.
Expendable property accountability: 4 years
Records reflecting accountability for receipt and use of material in contract performance must be retained for 4 years. These records are important for tracing consumable materials from receipt through use and for supporting inventory and cost reviews.
Receiving and inspection reports: 4 years
Reports showing receipt and inspection of supplies, equipment, and materials must be retained for 4 years. These documents are key evidence that items were received and inspected in accordance with contract requirements.
Purchase order files and backups: 4 years
Purchase order files for supplies, equipment, material, or services used in contract performance, along with supporting documentation and backup files such as invoices and negotiation memoranda, must be retained for 4 years. This includes memoranda of negotiations showing principal elements of subcontract price negotiations when relevant under 52.244-2.
Production quality records: 4 years
Production records of quality control, reliability, and inspection must be retained for 4 years. These records support quality assurance, defect analysis, and performance verification during and after contract execution.
Property records: 4 years
Property records, as referenced in FAR 45.101 and 52.245-1, must be retained for 4 years. These records support government property administration, accountability, and disposition decisions.
Responsibilities
Contractor
Maintain the listed acquisition and supply records for the required retention periods, ensure records are organized by document type, and preserve supporting documentation such as invoices, inspection reports, and negotiation memoranda when applicable.
Contracting Officer
Ensure contract administration expectations align with FAR retention requirements, especially where subcontracting, government property, or quality-related records may need to be available for review or audit.
Property Administrator
Use retained property records to verify accountability, usage, and disposition of government property and to support property management reviews under FAR 45.101 and 52.245-1.
Auditors and Review Officials
Rely on retained records to evaluate allowability, allocability, pricing support, property accountability, inspection results, and compliance with contract requirements.
Subcontractors and Suppliers
When their records are incorporated into the contractor’s file or required by contract flowdown, maintain relevant purchase, negotiation, receipt, and inspection records long enough to support the prime contractor’s compliance obligations.
Practical Implications
Most of the records in this section must be kept for 4 years, so contractors should not assume a single retention period for all procurement files; store requisitions are the main 2-year exception.
The rule is broad enough to cover both the primary record and its backup documentation, so invoices, memoranda, and negotiation notes may need to be retained with the file, not discarded separately.
Quality, property, and receiving records often become critical long after performance ends, especially in disputes, audits, defective pricing reviews, property loss issues, or subcontract pricing questions.
Contractors should map these record types into their document management systems so retention clocks start from the correct event and so records are not destroyed too early.
A common pitfall is treating “purchase order files” as only the signed order; this section also includes supporting documents and backup files, which are often the most important evidence in a review.
Official Regulatory Text
(a) Store requisitions for materials, supplies, equipment, and services: Retain 2 years. (b) Work orders for maintenance and other services: Retain 4 years. (c) Equipment records, consisting of equipment usage and status reports and equipment repair orders: Retain 4 years. (d) Expendable property records, reflecting accountability for the receipt and use of material in the performance of a contract: Retain 4 years. (e) Receiving and inspection report records, consisting of reports reflecting receipt and inspection of supplies, equipment, and materials: Retain 4 years. (f) Purchase order files for supplies, equipment, material, or services used in the performance of a contract; supporting documentation and backup files including, but not limited to, invoices, and memoranda; e.g., memoranda of negotiations showing the principal elements of subcontract price negotiations (see 52.244-2 ): Retain 4 years. (g) Production records of quality control, reliability, and inspection: Retain 4 years. (h) Property records (see FAR 45.101 and 52.245-1 ): Retain 4 years.