|
|
Allowable costs are limited to those that are reasonable, allocable, and necessary, determined in accordance with Federal Acquisition Regulations 52.216-7 and 52.216-8 and with USAID Acquisition Regulation 752.7003.
Federal Acquisition Regulation 52.216-7 incorporates the cost principles of FAR Subpart 31.2-Contracts with Commercial Organizations, which defines a reasonable cost as one that “does not exceed that which would be incurred by a prudent person in the conduct of competitive business” and is “generally recognized as ordinary and necessary” for the conduct of the contractor’s business or for contract performance.
General Recommendations
- Determine the allowability of ineligible questioned costs and recover any amounts determined to be unallowable.
Source: AUDIT REPORT NO. 4-674-11-004-P JANUARY 4, 2011
The recommendations are derived from audit reports of the Office of the Inspector General. The source refers to the audit report, which is available on this site as part of the Audit Database Project: an educational tool for compliance with USAID regulations. Please see the disclaimer of this site before using recommendations.
- Certification Regarding Responsibility Matters - FAR 9.104-6 - FAR 9.105-2(b) - FAR 9.4
- Excluded Parties List System Reviews During the Bidding and Awarding Process - FAR 9.404 - 22 CFR 208 - ADS 502.5.1b - FAR 9.405(d) - FAR 9.105-2(b)
- Strengthen Program Oversight - ADS 302
- Implementer Performed Unauthorized Program Activities - ADS 202.3.6.1
- Ensure That Funding Requests Are Appropriate - ADS 602.3.2
- Strengthen Oversight of Renovation Activities - FAR Part 36, “Construction and Architect-Engineer Contracts” - GAO/AIMD-00-21.3.1 (11/99), page 20
- Mission Did Not Complete Contractor Performance Review - USAID Acquisition Regulation 742.15 (also known as 48 CFR 742.1502) - FAR 42.1502
- Contracting Officials Did Not Document Contract Files or Communicate Adequately - 22 CFR 226 - FAR 4.801 (b)
- Fixed-Amount Reimbursement Agreements Reduce Risk - ADS Supplemental 317
- Contract Not Adequately Reviewed by Contract Review Board - (ADS) 302.3.1.2 - Contract Review Board Guidelines
- Contracting Mechanism Used for Program is not Appropriate - Federal Acquisition Regulation 16.505(a)(2) - supplemental policy to ADS 302, Indefinite Quantity Contract (IQC): Task Order Work Statement Development Checklist - Competition in Contracting Act
- Lack of Effective Program Oversight - ADS 302-Procedures for Designating the COTR for Contracts and Task Orders - ADS 303- Agreement Officer’s Technical Representative (AOTR) Designation – Cooperative Agreement Administration.
- Subcontracts Lacked Supporting Documentation and Were Susceptible to Fraud - (FAR) 31.201-2(d)
- Voluntary Population Planning Language Was Not Included in Subcontracts - USAID Acquisition Regulation (AIDAR) 752.7101, Voluntary Population Planning Activities
- Appropriate Records Were Not Retained - Federal Acquisition Regulation (FAR) 52.215-2, Audit and Records – Negotiation
- Source Origin Requirements Were Not Met - ADS 310, Source, Origin, and Nationality of Commodities - the Foreign Assistance Act Section 604 - ADS 310.5.5
- Approval for Subawards Was Not Obtained - 22 CFR Part 226, Administration of Assistance Awards to U.S. Non-Governmental Organizations, Section 226.25(c)(8)
Interested in the original audit reports?