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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: May 22, 2000

FROM: Barry McVay, CPCM

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Office of Management and Budget (OMB) Circular A-73, Audit of Federal Operations and Programs

SOURCE: Federal Register, May 22, 2000, Vol. 65, No. 99, page 32041

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is amending DFARS 252.237-7001, Compliance with Audit Standards, to remove the requirement for contractors to comply with OMB Circular No. A-73 when performing audit services for DOD. OMB rescinded Circular No. A-73 on May 22, 1995.

EFFECTIVE DATE: May 22, 2000.

FOR FURTHER INFORMATION CONTACT: Ms. Sandra Haberlin, Defense Acquisition Regulations Council, PDUSD (AT&L) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-0289; fax: 703-602-0350. Cite DFARS Case 2000-D007 when referring to this rule.

SUPPLEMENTAL INFORMATION: On May 22, 1995, OMB rescinded Circular A-73 as unnecessary because the audit practices in the circular had become common throughout the government. However, DFARS 252.237-7001, which specifies the standards to which contractors must comply when performing audit services for DOD, was never amended to remove the reference to OMB Circular A-73. Therefore, this final rule revises DFARS 252.237-7001 to remove the requirement for contractors performing audit services to comply with OMB Circular A-73.

The revised text of the clause is: "The Contractor, in performance of all audit services under this contract, shall comply with 'Government Auditing Standards' issued by the Comptroller General of the United States."

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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