[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR42.709-2]

[Page 776]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 42_CONTRACT ADMINISTRATION AND AUDIT SERVICES--Table of Contents
 
                    Subpart 42.7_Indirect Cost Rates
 
Sec.  42.709-2  Responsibilities.

    (a) The cognizant contracting officer is responsible for--
    (1) Determining whether the penalties in 42.709-1(a) should be 
assessed;
    (2) Determining whether such penalties should be waived pursuant to 
42.709-5; and
    (3) Referring the matter to the appropriate criminal investigative 
organization for review and for appropriate coordination of remedies, if 
there is evidence that the contractor knowingly submitted unallowable 
costs.
    (b) The contract auditor, in the review and/or the determination of 
final indirect cost proposals for contracts subject to this section, is 
responsible for--
    (1) Recommending to the contracting officer which costs may be 
unallowable and subject to the penalties in 42.709-1(a);
    (2) Providing rationale and supporting documentation for any 
recommendation; and
    (3) Referring the matter to the appropriate criminal investigative 
organization for review and for appropriate coordination of remedies, if 
there is evidence that the contractor knowingly submitted unallowable 
costs.

[60 FR 42658, Aug. 16, 1995]