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FAR and DFARS › DFARS Part 242: Contract Administration and Audit Services › Subpart 242.8

DFARS 242.803 Disallowing costs after incurrence.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section explains how vouchers are handled for cost-reimbursement contracts, focusing on the roles of the contracting officer, contract auditor, and administrative contracting officer. It matters because it determines who receives, reviews, and approves vouchers, which affects when contractors get paid and how costs may be questioned or disallowed.

Applies to: Cost-reimbursement contracts, especially those with the Canadian Commercial Corporation, and the officials involved in voucher processing.

What it requires

  • Contractors must submit vouchers as directed by the contract terms.
  • The contract auditor must review interim vouchers selected for pre-payment review before sending them to the disbursing office.
  • The administrative contracting officer must approve all completion/final vouchers and send them to the disbursing officer.

Key terms: voucher · contracting officer · contract auditor · administrative contracting officer · DCAA Form 1

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) Contracting officer receipt of vouchers. Contracting officer receipt of vouchers is applicable only for cost-reimbursement contracts with the Canadian Commercial Corporation. See 225.870-5(b) for invoice procedures.

(b) Auditor receipt of voucher. (i) The contract auditor is the authorized representative of the contracting officer for—

(A) Receiving vouchers from contractors electronically or by other delivery methods as directed by the terms of the contract;

(B) Approving interim vouchers that were selected using sampling methodologies for provisional payment and sending them to the disbursing office after a pre-payment review. Interim vouchers not selected for a pre-payment review will be considered to be provisionally approved and will be sent directly to the disbursing office. All provisionally approved interim vouchers are subject to a later audit of actual costs incurred;

(C) Reviewing completion/final vouchers and sending them to the administrative contracting officer; and

(D) Issuing DCAA Forms 1, Notice of Contract Costs Suspended and/or Disapproved, to deduct costs where allowability is questionable.

(ii) The administrative contracting officer—

(A) Approves all completion/final vouchers and sends them to the disbursing officer; and

(B) May issue or direct the issuance of DCAA Form 1 on any cost when there is reason to believe it should be suspended or disallowed.

Sections it refers to

← 242.771-3 Responsibilities. · 242.1104 Surveillance requirements. →

Rule changes for DFARS Part 242

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 242.803 Disallowing costs after incurrence · SpendQuery