DATE: January 27, 2022

Adding Clause Dates and Making Minor Editorial Changes to the Previously Issued Class Deviation to Implement the Office of Inspector General's New Audit Strategy for Management and Operating Contracts

TO: HCAs/Procurement Directors/Contracting Officers FROM: Director Contract and Financial Assistance Policy Division Office of Policy Office of Acquisition Management

SUMMARY: This Flash adds clause dates and makes minor editorial changes to the class deviation issued in Policy Flash 2022-05 of November 2, 2021.

The class deviation with the added clause dates and minor editorial changes is attached in two forms: in redline; and in final.

The editorial changes occur at:

DEAR 970.4207-09-06—to make it clear that Contracting Officers must insert only the FAR penalties for unallowable costs clause in contracts and must not insert the DEAR penalties for unallowable costs clause or any prior versions of it in contracts; and

DEAR 970.5232-3(c) and DEAR 970.5244-1(e)(1)(i)—to remove “(that the contract auditor and the Contracting Officer agree is sufficient).”

Contracting Officer Questions concerning this policy flash should be directed to the Contract and Financial Assistance Policy Division at