49.107 Audit of prime contract settlement proposals and subcontract settlements.

(a)  The TCO shall ensure that each prime contract settlement proposal above the simplified acquisition threshold is reviewed by a DITCO Cost Analyst for the purpose of evaluating the reasonableness prior to negotiating the final settlement. A DITCO Cost Analyst shall assist the TCO in the development of a settlement negotiation position, as the TCO may require. The TCO may request assistance from a DITCO Cost Analyst with respect to prime contract settlement proposals below the simplified purchase maximum limit, if the TCO believes circumstances warrants.

(b)  Subcontract settlements shall be accomplished in keeping with policy and procedure for accomplishment of prime contract settlements.

(c)  Requests to the audit agency to perform the accounting review shall be prepared by a DITCO Cost Analyst, for signature by the TCO.