NATO AACP-2 VOL 10

Abstract

<strong>SCOPE OF CONTRACT AUDIT SERVICES</strong> <br>Provision of audit services may include, but is not limited to: <br>the audit of costs claimed by contractors to have been incurred in the performance of a contract;&#160; <br>the audit of costs estimates submitted by contractors in support of tenders, proposals or quotations;&#160; <br>audit of specific cost elements, including where appropriate, advice on the indices proposed for use in variation of price formulae; <br>carrying out a financial assessment of potential contractors, where such assessment is generally performed by the performing authority; <br>the audit of claims submitted by contractors in respect of terminated contracts. <br>Audit services should not normally be requested for contracts below a value of 1 million EUR. However, a purchasing authority may request, on an exception basis, an audit to be performed on a contract with a value below 1 million EUR, provided that the purchasing authority states the reason why it is considered necessary for such an audit to be performed. <br>Contract audit services should only be requested in relation to non-competitive defence contracts already placed in the country of the performing authority or where the requesting authority has decided to place such a contract subject to the outcome of the audit. <br><strong>PURPOSE&#160;</strong> <br>To set out the framework for the provision of contract audit services between NATO countries or between NATO organisations and NATO countries in connection with non-competitive or single source defence contracting