NATO AACP-2 VOL 10

VERSION 1 * AVAILABLE ELECTRONIC ONLY

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