Use the following clause in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial items, for the acquisition of financial statement auditing or audit remediation services to the Department of Defense in support of the audits required under 31 U.S.C. 3521 that exceed the simplified acquisition threshold:
REQUIREMENT FOR ACCOUNTING FIRMS USED TO SUPPORT DEPARTMENT OF DEFENSE AUDITS (MAR 2019)
(a) This clause only applies if the Contractor is an accounting firm providing financial statement auditing or audit remediation services to the Department of Defense in support of the audits required under 31 U.S.C. 3521.
(b) For each contract action under this contract (including award, renewal, or amendment), the Contractor shall provide to the Contracting Officer a statement setting forth the details of any disciplinary proceedings with respect to the accounting firm or its associated persons before any entity with the authority to enforce compliance with rules or laws applying to audit services offered by accounting firms, if there has been any change with regard to such proceedings since the last contract action.
(c) The Government will safeguard and treat as confidential all statements provided pursuant to this provision where the statement has been marked “confidential” or “proprietary” by the Contractor. Statements so marked will not be released by the Government to the public pursuant to the Freedom of Information Act request, 5. U.S.C. 552, without prior notification to the Contractor and opportunity for the Contractor to claim an exemption from release. The Government will treat any statement provided pursuant to this section as confidential to the extent required by any other applicable law.
(End of clause)