NATO AACP-2 VOL 10 PDF

SCOPE OF CONTRACT AUDIT SERVICES

Provision of audit services may include, but is not limited to:

the audit of costs claimed by contractors to have been incurred in the performance of a contract; 

the audit of costs estimates submitted by contractors in support of tenders, proposals or quotations; 

audit of specific cost elements, including where appropriate, advice on the indices proposed for use in variation of price formulae;

carrying out a financial assessment of potential contractors, where such assessment is generally performed by the performing authority;

the audit of claims submitted by contractors in respect of terminated contracts.

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.

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.

PURPOSE 

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