'EXAMINATION OF RECORDS' CLAUSE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP57-00384R000700070009-1
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: December 12, 2016
• Document Release Date: May 25, 2001
• Sequence Number: 9
• Publication Date: February 3, 1953
• Content Type: MEMO

25X1A
Approved For Fease 20 00384RQ0070
Acting Chief, Purchase Division
Office of the General Counsel
Examination of Records" Clause
OGC HAS REVIEWED.
.~'.rr?~, i 3
j'// 77 Cep, 4-z 7
3 February 1953
1. Reference is made to your memorandum of 21
January 1953 on the above subject,. inquiring whether
it is necessary to include an *examination of records*
clause in Agency contracts which are not subject to
review by the General Accounting Office.
2. The mandatory inclusion of this clause in such
contracts would endanger security and seriously impair
the authority of the Agency to employ unvouchered
funds. It is not believed that the 52nd Congress had
any such intention when it passed Public Law 245, re-
quring the inclusion of such a clause in contracts
negotiated under the Armed Service Procurement Act.
Consequently, if the contract in question is to be
administered under unv+cuchered funds, in accordance
with Agency regulations, this clause need not be in-
cluded.
3. Some officials of the Office of Procurement
and Supply have expressed the opinion that, even where
unvouchered funds are used, the contractor should be
required to keep his records available for inspection
until the expiration of three years, as provided in
the *examination of records" clause. This can be
accomplished by leaving the standard 'examination
of records* clause in the General Provisions, but
attaching in the Schedule of unvouchered contracts the
following paragraph:
'Notwithstandi the provisions of
Article hereof, entitled 'Examina-
tion of eco st, or any other provisions
of this contract to the contrary, the Con-
tractor shall not divulge any information
in regard to this contract to the Comp-
troller General or insert an 'examination
of records* clause in subcontracts hereunder,
except upon the written direction of the
Contracting Officer or his authorized
representative.*
Approved For Release 2002/Q~ ?E#IAAI0384R000700070009-1
 Approved For Release 2002
have the incidental advantage of requiring no
.n the printed General Provisions when the con-
on unvouchered funds.
Assistant Genera Counsel
t ,/RGH M cd (30 January 1
Distribution:
ON - 4
Approved For Release 200MIMWFAL 00384R000700070009-1