Common use of Cost Accounting System Clause in Contracts

Cost Accounting System. Contractors are required to have an adequate cost accounting system for Cost Reimbursement type Orders in accordance with FAR 16.301-3(a)(1). The Contractor must maintain a cost accounting system determined adequate by their cognizant auditing agency. . The Contractor shall notify the ACO and designated OCOs for ongoing Orders, in writing, if there are any changes in the status of their cost accounting system and provide the reason(s) for the change.