Page:United States Statutes at Large Volume 124.djvu/3825

124 STAT. 3799 PUBLIC LAW 111–350—JAN. 4, 2011 (e) LIMITATION ON AUDITS RELATING TO INDIRECT COSTS.—An executive agency may not perform an audit of indirect costs under a contract, subcontract, or modification before or after entering into the contract, subcontract, or modification when the contracting officer determines that the objectives of the audit can reasonably be met by accepting the results of an audit that was conducted by another department or agency of the Federal Government within one year preceding the date of the contracting officer’s determina- tion. (f) EXPIRATION OF AUTHORITY.—The authority of an executive agency under subsection (b) and the authority of the Comptroller General under subsection (d) shall expire 3 years after final pay- ment under the contract or subcontract. (g) INAPPLICABILITY TO CERTAIN CONTRACTS.—This section does not apply to the following contracts: (1) Contracts for utility services at rates not exceeding those established to apply uniformly to the public, plus any applicable reasonable connection charge. (2) A contract or subcontract that is not greater than the simplified acquisition threshold. (h) ELECTRONIC FORM ALLOWED.—This section does not preclude a contractor from duplicating or storing original records in electronic form. (i) ORIGINAL RECORDS NOT REQUIRED.—An executive agency shall not require a contractor or subcontractor to provide original records in an audit carried out pursuant to this section if the contractor or subcontractor provides photographic or electronic images of the original records and meets the following requirements: (1) PRESERVATION PROCEDURES ESTABLISHED.—The contractor or subcontractor has established procedures to ensure that the imaging process preserves the integrity, reliability, and security of the original records. (2) INDEXING SYSTEM MAINTAINED.—The contractor or subcon- tractor maintains an effective indexing system to permit timely and convenient access to the imaged records. (3) ORIGINAL RECORDS RETAINED.—The contractor or subcon- tractor retains the original records for a minimum of one year after imaging to permit periodic validation of the imaging sys- tems. § 4707. Remission of liquidated damages When a contract made on behalf of the Federal Government by the head of a Federal agency, or by an authorized officer of the agency, includes a provision for liquidated damages for delay, the Secretary of the Treasury on recommendation of the head of the agency may remit any part of the damages as the Secretary of the Treasury believes is just and equitable. § 4708. Payment of reimbursable indirect costs in cost-type research and development contracts with edu- cational institutions A cost-type research and development contract (including a grant) with a university, college, or other educational institution may provide for payment of reimbursable indirect costs on the basis of predetermined fixed-percentage rates applied to the total of the reimbursable direct costs incurred or to an element of the total of the reimbursable direct costs incurred.