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FAR and DFARS › FAR Part 42: Contract Administration and Audit Services

FAR 42.002 Interagency agreements.

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 tells federal agencies to use interagency agreements to avoid duplicating audits, reviews, inspections, and examinations of contractors or subcontractors by more than one agency. It also addresses reimbursement between agencies for services rendered and encourages procedures for resolving issues under such agreements. For contractors, this matters because it aims to reduce repeated oversight from multiple agencies.

Applies to: Federal agencies that audit, review, inspect, or examine contractors or subcontractors

What it requires

  • Agencies shall avoid duplicate audits, reviews, inspections, and examinations of contractors or subcontractors by more than one agency through interagency agreements.
  • The requesting agency shall reimburse the servicing agency for rendered services in accordance with the Economy Act, subject to fiscal regulations and applicable interagency agreements.

Key terms: interagency agreements · duplicate audits · reviews · inspections · examinations

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

The text

(a) Agencies shall avoid duplicate audits, reviews, inspections, and examinations of contractors or subcontractors, by more than one agency, through the use of interagency agreements.

(b) Subject to the fiscal regulations of the agencies and applicable interagency agreements, the requesting agency shall reimburse the servicing agency for rendered services in accordance with the Economy Act (31 U.S.C. 1535).

(c) When an interagency agreement is established, the agencies are encouraged to consider establishing procedures for the resolution of issues that may arise under the agreement.

Sections that refer to it

← 42.001 [Reserved] · 42.003 Cognizant Federal agency. →

Rule changes for FAR Part 42

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

FAR 42.002 Interagency agreements · SpendQuery